71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
SA to A-Eng. HB 3433
LC 3782/HB 3433-A6
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 3433
By COMMITTEE ON REVENUE
June 4
In line 2 of the printed A-engrossed bill, after ' taxation;'
insert 'creating new provisions;' and after ' amending' insert
'ORS 323.500 and 323.505 and'.
In lines 9 and 10, restore the bracketed material.
In line 10, delete '2002' and insert '2004'.
After line 15, insert:
' { + SECTION 2. + } ORS 323.500 is amended to read:
' 323.500. As used in the Tobacco Products Tax Act, unless the
context otherwise requires:
' (1) 'Business' means any trade, occupation, activity or
enterprise engaged in for the purpose of selling or distributing
tobacco products in this state.
' { + (2) 'Cigar' means a roll for smoking that is of any
size or shape and that is made wholly or in part of tobacco,
irrespective of whether the tobacco is pure or flavored,
adulterated or mixed with any other ingredient, if the roll has a
wrapper made wholly or in greater part of tobacco and if 1,000 of
these rolls collectively weigh more than three pounds. 'Cigar'
does not include a cigarette, as defined under ORS 323.010
(1). + }
' { - (2) - } { + (3) + } 'Department' means the Department
of Revenue.
' { - (3) - } { + (4) + } 'Distributor' means:
' (a) Any person engaged in the business of selling tobacco
products in this state who brings, or causes to be brought, into
this state from without the state any tobacco products for sale;
' (b) Any person who makes, manufactures or fabricates tobacco
products in this state for sale in this state; or
' (c) Any person engaged in the business of selling tobacco
products without this state who ships or transports tobacco
products to retailers in this state, to be sold by those
retailers.
' { - (4) - } { + (5) + } 'Manufacturer' means a person who
manufactures and sells tobacco products.
' { - (5) - } { + (6) + } 'Place of business' means any
place where tobacco products are sold or where tobacco products
are manufactured, stored or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train or
vending machine.
' { - (6) - } { + (7) + } 'Retail dealer' means every
person, other than a distributor, manufacturer or subjobber who
is engaged in the business of selling or otherwise dispensing to
ultimate consumers any tobacco product. The term also includes
the operators of or recipients of revenue from all places such as
smoke shops, cigar stores and vending machines, where tobacco
products are made or stored for ultimate sale to consumers.
' { - (7) - } { + (8) + } 'Sale' means any transfer,
exchange or barter, in any manner or by any means whatsoever, for
a consideration, and includes and means all sales made by any
person. It includes a gift by a person engaged in the business of
selling tobacco products, for advertising, as a means of evading
the provisions of ORS 323.500 to 323.645, or for any other
purposes whatsoever.
' { - (8) - } { + (9) + } 'Subjobber' means any person,
other than a manufacturer or distributor, who buys tobacco
products from a distributor and sells them to persons other than
the ultimate consumers.
' { - (9) - } { + (10) + } 'Tobacco products' means cigars,
cheroots, stogies, periques, granulated, plug cut, crimp cut,
ready rubbed and other smoking tobacco, snuff, snuff flour,
cavendish, plug and twist tobacco, fine-cut and other chewing
tobaccos, shorts, refuse scraps, clippings, cuttings and
sweepings of tobacco and other kinds and forms of tobacco,
prepared in such manner as to be suitable for chewing or smoking
in a pipe or otherwise, or both for chewing and smoking, but
shall not include cigarettes as defined in ORS 323.010 (1).
' { - (10) - } { + (11) + } 'Wholesale sales price' means
the established price for which a manufacturer sells a tobacco
product to a distributor, after any discount or other reduction
for quantity or cash.
' { + SECTION 3. + } ORS 323.505 is amended to read:
' 323.505. (1) A tax is hereby imposed upon the sale, storage,
use, consumption, handling or distribution of all tobacco
products in this state { - at the rate of 65 percent of the
wholesale sales price of such tobacco products - } . The tax
shall be imposed on distributors at the time the distributor:
' (a) Brings, or causes to be brought, into this state from
without the state tobacco products for sale, storage, use or
consumption;
' (b) Makes, manufactures or fabricates tobacco products in
this state for sale, storage, use or consumption in this state;
or
' (c) Ships or transports tobacco products to retail dealers in
this state, to be sold, stored, used or consumed by those retail
dealers.
' { + (2) The tax imposed under this section shall be imposed
at the rate of:
' (a) Sixty-five percent of the wholesale sales price of
cigars, but not to exceed 50 cents per cigar; or
' (b) Sixty-five percent of the wholesale sales price of all
tobacco products that are not cigars. + }
' { - (2) - } { + (3) + } If the tax imposed under this
section does not equal an amount calculable to a whole cent, the
tax shall be equal to the next highest whole cent. However, the
amount remitted to the Department of Revenue by the taxpayer for
each quarter shall be equal only to 98.5 percent of the total
taxes due and payable by the taxpayer for the quarter.
' { - (3) - } { + (4) + } No tobacco product shall be
subject to the tax if the base product or other intermediate form
thereof has previously been taxed under this section.
' { - (4) - } { + (5) + } Notwithstanding any provision of
the Tobacco Products Tax Act to the contrary, the tax imposed by
this section may be paid by the manufacturer or any other person
or entity instead of the taxpayer from whom such tax would
otherwise be due. In the event of payment by another person or
entity, the taxpayer shall be excused from payment of the amount
of the tax which has been so paid if, together with the return
required under ORS 323.510, the taxpayer supplies evidence
satisfactory to the department or in a form prescribed by the
department showing that such tax has been so paid.
' { + SECTION 4. + } { + The amendments to ORS 323.500 and
323.505 by sections 2 and 3 of this 2001 Act apply to tobacco
products tax reporting periods beginning on or after January 1,
2002. + } ' .
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