74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1766
 
                           A-Engrossed
 
                         House Bill 2422
                  Ordered by the House April 5
            Including House Amendments dated April 5
 
Sponsored by Representative BEYER (at the request of Oregon
  Transit Association) (Presession filed.)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Increases cigarette tax and continuously appropriates
moneys from increase to Department of Transportation for elderly
and disabled transportation services. - }
    { - Applies to cigarette tax reporting periods beginning on
or after effective date of Act. - }
   { +  Imposes additional tax on distributions of cigarettes.
Applies to distributions on or after January 1, 2008.
  Continuously appropriates moneys collected from tax to
Department of Revenue to be distributed to specified entities,
funds and accounts.
  Establishes inventory and reporting requirements for cigarette
distributors. + }
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to cigarette taxation; appropriating money; prescribing
  an effective date; and providing for revenue raising that
  requires approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2007 Act is added to and made
a part of ORS 323.005 to 323.482. + }
  SECTION 2.  { + (1) Notwithstanding ORS 323.030 (2) and in
addition to and not in lieu of any other tax, every distributor
shall pay a tax upon distributions of cigarettes at the rate of
one mill for the distribution of each cigarette in this state.
  (2) Any cigarette for which a tax has once been imposed under
ORS 323.005 to 323.482 may not be subject, upon a subsequent
distribution, to the taxes imposed by ORS 323.005 to 323.482. + }
  SECTION 3.  { + (1) All moneys received by the Department of
Revenue from the tax imposed by section 2 of this 2007 Act shall
be paid over to the State Treasurer to be held in a suspense
account established under ORS 293.445. All amounts in the account
are continuously appropriated to the department. After payment of
refunds the department shall distribute:
  (a) 84.28 percent to the Department of Transportation for the
purpose of financing and improving transportation services for
 
elderly and disabled individuals as provided in ORS 391.800 to
391.830;
  (b) 0.45 percent to the cities of this state;
  (c) 0.45 percent to the counties of this state;
  (d) 0.45 percent to the Tobacco Use Reduction Account
established under ORS 431.832;
  (e) 11.44 percent to the Oregon Health Plan Fund established
under ORS 414.109; and
  (f) 2.93 percent to the General Fund.
  (2)(a) Moneys distributed to cities and counties under this
section shall be distributed to each city or county using the
proportions used for distributions made under ORS 323.455.
  (b) Moneys shall be distributed to cities, counties and the
Elderly and Disabled Special Transportation Fund under this
section at the same time moneys are distributed to cities,
counties and the Elderly and Disabled Special Transportation Fund
under ORS 323.455. + }
  SECTION 4.  { + Section 2 of this 2007 Act applies to
distributions of cigarettes occurring on or after January 1,
2008. + }
  SECTION 5.  { + (1) Every distributor must take an inventory,
as of 12:01 a.m. on January 1, 2008, of all packages of
cigarettes to which are affixed Oregon cigarette tax stamps and
of all unaffixed Oregon cigarette tax stamps in the possession of
or under the control of the distributor.
  (2) Every distributor must file a report with the Department of
Revenue on or before January 21, 2008, in such form as the
department may prescribe, showing:
  (a) The number of Oregon cigarette tax stamps, with the
designations of the stamps, that were affixed to packages of
cigarettes in the possession of or under the control of the
distributor at 12:01 a.m. on January 1, 2008; and
  (b) The number of unaffixed Oregon cigarette tax stamps, with
the designations of the stamps, that were in the possession of or
under the control of the distributor at 12:01 a.m. on January 1,
2008.
  (3) The amount of tax required to be paid with respect to the
affixed Oregon cigarette tax stamps shall be computed pursuant to
section 2 of this 2007 Act and remitted with the distributor's
report. Any amount of tax not paid within the time specified for
the filing of the report shall bear interest at the rate
established under ORS 305.220 per month, or fraction of a month,
from the due date of the report until paid. + }
  SECTION 6.  { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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