Senate Joint Resolution 4
PARAGRAPH 1.
The Constitution of the State of
Be It Enacted by the People of
the State of
SECTION 15. (1)
In addition to and not in lieu of any other tax:
(a) A tax equal to 42.25
mills is imposed upon the consumption of each cigarette in this state;
(b) A tax equal to 30
percent of the wholesale price of each cigar is imposed upon the consumption of
each cigar in this state; and
(c) A tax equal to 30
percent of the wholesale price of each other tobacco product is imposed upon
the consumption of each other tobacco product in this state.
(2) For purposes of
subsection (1) of this section, consumption occurs when a person in this state
purchases or uses cigarettes, cigars or other tobacco products, other than
purchases made for the purpose of reselling the cigarettes, cigars or other
tobacco products to another person.
(3) Notwithstanding subsection
(1) of this section:
(a) The Legislative
Assembly may exempt from the taxes imposed under subsection (1) of this section
cigarettes, cigars and tobacco products that are exempt from taxation under
Oregon law on the effective date of this section; and
(b) The Legislative
Assembly may provide that the tax imposed under paragraph (b) of subsection (1)
of this section, when combined with existing taxes on cigars, may not exceed 50
cents per cigar.
(4) The Legislative
Assembly may enact laws to facilitate administration of the taxes imposed under
subsection (1) of this section, including but not limited to laws:
(a) Defining terms used
in this section.
(b) Prescribing how the
taxes imposed under subsection (1) of this section will be administered and
enforced.
(c) Requiring that the
taxes imposed under subsection (1) of this section be prepaid by a distributor
upon distribution of the cigarettes, cigars or other tobacco products for
consumption and be subsequently collected from the consumer.
(5) Revenues from the
taxes imposed under subsection (1) of this section are dedicated to providing
health care to children, low-income adults and other medically underserved
Oregonians and to tobacco use prevention and education.
(6) The taxes imposed
under subsection (1) of this section apply to:
(a) Distributions of
cigarettes, cigars and other tobacco products for consumption on or after
January 1, 2008; and
(b) Cigarettes that are
in this state for the purpose of sale to another person as of January 1, 2008.
PARAGRAPH 2.
The amendment proposed by this resolution shall be submitted to the people
for their approval or rejection at a special election held throughout this
state as provided in chapter 750,
Filed in the office of Secretary of State July 6, 2007
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