71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 424
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Revenue)
CHAPTER ................
AN ACT
Relating to cigarette taxation; creating new provisions; and
amending ORS 323.010 and 323.015.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 323.010 is amended to read:
323.010. (1) 'Cigarette' means any { - roll for smoking, made
wholly or in part of tobacco, irrespective of size or shape and
irrespective of whether the tobacco is flavored, adulterated or
mixed with any other ingredient, where such roll has a wrapper or
cover made of paper or any other material, except where such
wrapper is wholly or in the greater part made of tobacco and
1,000 such rolls weigh over three pounds. - } { + product that
contains nicotine, is intended to be burned or heated under
ordinary conditions of use and consists of or contains:
(a) Any roll of tobacco wrapped in paper or in any substance
not containing tobacco;
(b) Tobacco, in any form, that is functional in the product and
that, because of its appearance, the type of tobacco used in the
filler or its packaging and labeling, is likely to be offered to,
or purchased by, consumers as a cigarette; or
(c) Any roll of tobacco that is wrapped in any substance
containing tobacco and that, because of its appearance, the type
of tobacco used in the filler or its packaging and labeling, is
likely to be offered to, or purchased by, consumers as a
cigarette described in paragraph (a) of this subsection.
(2) 'Cigarette activity in this state':
(a) Means importing, storing or manufacturing cigarettes in
this state, or exporting cigarettes out of this state, in order
to sell the cigarettes either within or outside this state.
(b) Does not include importing, storing, manufacturing or
exporting of cigarettes that are to be consumed by the person
doing the importing, storing, manufacturing or exporting. + }
{ - (2) - } { + (3) + } 'Department' means the Department
of Revenue.
{ - (3) - } { + (4) + } 'Dealer' includes every person,
other than a manufacturer or a person holding a distributor's
license, who engages in this state in the sale of cigarettes.
{ + (5) 'Exporting' means the act of carrying or conveying
goods from a point of manufacture or storage in this state to a
Enrolled Senate Bill 424 (SB 424-INTRO) Page 1
location outside this state and may be further defined by the
department by rule.
(6) 'Importing' means the act of bringing goods to a point of
storage in this state from a location outside this state and may
be further defined by the department by rule. + }
{ - (4) - } { + (7) + } 'In this state' means within the
exterior limits of the State of Oregon and includes all territory
within these limits owned by or ceded to the United States of
America.
{ - (5) - } { + (8) + } 'Manufacturer' means any person who
makes, manufactures or fabricates cigarettes for sale to
distributors.
{ - (6) - } { + (9) + } 'Package' means the individual
package, box or other container in which retail sales or gifts of
cigarettes are normally made or intended to be made.
{ - (7) - } { + (10) + } 'Person' includes any individual,
firm, copartnership, joint venture, association, social club,
fraternal organization, corporation, estate, trust, receiver,
trustee, syndicate, this state, any county, municipality,
district or other political subdivision of the state, or any
other group or combination acting as a unit.
{ - (8) - } { + (11) + } 'Sale' includes any transfer of
title or possession for a consideration, exchange or barter, in
any manner or by any means whatsoever, but does not include the
sale of cigarettes by a manufacturer to a distributor.
{ - (9) - } { + (12) + } 'Transporter' means any person
importing or transporting into this state, or transporting in
this state, cigarettes obtained from a source located outside
this state, or from any person not licensed as a distributor
under ORS 323.005 to 323.455 and 323.990. It does not include a
licensed distributor, a common carrier to whom is issued a
certificate or permit by the United States Interstate Commerce
Commission to carry commodities in interstate commerce, or to a
carrier of federal tax-free cigarettes in bond, or any person
transporting no more than 200 cigarettes at any one time.
{ - (10) - } { + (13) + } 'Untaxed cigarette' means any
cigarette which has not yet been distributed in such manner as to
result in a tax liability under ORS 323.005 to 323.455 and
323.990.
{ - (11) - } { + (14) + } 'Use or consumption' includes the
exercise of any right or power over cigarettes incident to the
ownership thereof, other than the sale of the cigarettes or the
keeping or retention thereof for the purpose of sale.
{ - (12) - } { + (15) + } 'Wholesaler' means any dealer who
engages in the sale of cigarettes to any other dealer for
purposes other than use or consumption.
SECTION 2. ORS 323.015 is amended to read:
323.015. (1) 'Distribution' includes:
(a) The sale in this state of untaxed cigarettes.
(b) The use or consumption in this state of untaxed cigarettes.
(c) The receipt or retention in this state of untaxed
cigarettes at a place of business where cigarettes are
customarily sold or offered for sale to consumers.
(d) The placing of cigarettes in vending machines in this
state.
(e) The use or consumption by the first person in possession in
this state of untaxed cigarettes transported to the state in
quantities of more than 200 in a single shipment.
(f) Donations of sample cigarettes or gift cartons by the
manufacturers thereof, except sample packages containing not more
Enrolled Senate Bill 424 (SB 424-INTRO) Page 2
than five cigarettes and labeled as 'sample,' 'not for sale ' or
with similar wording.
(2) 'Distributor' includes:
(a) Every person who after July 1, 1966, and within the meaning
of the term 'distribution' as defined in this section,
distributes cigarettes.
(b) Every person who sells or accepts orders for cigarettes
which are to be transported from a point outside this state to a
consumer within this state.
(c) Notwithstanding the provisions of ORS 323.010 { - (3) - }
{ + (4) + }, any dealer who serves as the dealer's own
distributor or who buys directly from a manufacturer for resale
in this state shall be deemed to be both a distributor and a
dealer under ORS 323.005 to 323.455 and 323.990.
(3) 'Distributor engaged in business in this state ' includes
any of the following:
(a) Any distributor maintaining, occupying or using,
permanently or temporarily, directly or indirectly, or through a
subsidiary or agent, by whatever name called, an office, place of
distribution, sales or sample room or place, warehouse or storage
place or any other place of business.
(b) A distributor having a representative, agent, salesperson,
canvasser or solicitor operating in this state under the
authority of the distributor or its subsidiary for the purpose of
selling, delivering, or the taking of orders for cigarettes.
SECTION 3. { + Section 4 of this 2001 Act is added to and made
a part of ORS 323.005 to 323.455. + }
SECTION 4. { + (1) On or before the 20th day of January,
April, July and October, every person who is not a distributor
and who had cigarette activity in this state during the preceding
calendar quarter shall file on forms prescribed by the Department
of Revenue a report containing any information the department may
require to carry out the purposes of ORS 323.005 to 323.455 and
323.990.
(2) If the department determines that a report filed under this
section reflects cigarette activity that constitutes distribution
in this state, the department may deem the individual a
distributor subject to the provisions of ORS 323.005 to 323.455
and 323.990 that relate to distributors and the distribution of
cigarettes. + }
SECTION 5. { + Section 4 of this 2001 Act and the amendments
to ORS 323.010 and 323.015 by sections 1 and 2 of this 2001 Act
apply to cigarette tax reporting periods beginning on or after
January 1, 2002. + }
----------
Enrolled Senate Bill 424 (SB 424-INTRO) Page 3
Passed by Senate January 24, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House February 12, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 424 (SB 424-INTRO) Page 4
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 424 (SB 424-INTRO) Page 5