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 912
 
                           B-Engrossed
 
                    Senate Joint Resolution 4
                  Ordered by the Senate June 12
      Including Senate Amendments dated June 6 and June 12
 
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 Secretary of State Bill
  Bradbury)
 
 
                             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.
 
  Proposes amendment to Oregon Constitution to impose additional
taxes on tobacco products.  { + Allows Legislative Assembly to
exempt certain tobacco products from taxes. + } Dedicates
revenues from taxes imposed to providing health care to children,
low-income adults and other medically underserved Oregonians and
to tobacco use prevention and education.
  Refers proposed amendment to people for their approval or
rejection at special election to be held on date specified in
chapter __, Oregon Laws 2007 (Enrolled __ Bill __).
 
                        JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
  Oregon:
  PARAGRAPH 1. The Constitution of the State of Oregon is amended
by creating a new section 15 to be added to and made a part of
Article IX, such section to read:
   { +  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 distribution
of each cigarette in this state;
  (b) A tax equal to 30 percent of the wholesale price of each
cigar is imposed upon the distribution 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 distribution of each
other tobacco product in this state.
  (2) For purposes of subsection (1) of this section,
distribution of cigarettes, cigars or other tobacco products
occurs when the taxes imposed under this section have not been
paid on cigarettes, cigars or other tobacco products and the
cigarettes, cigars or other products are:
  (a) Brought or transported into this state for sale, use or
consumption in this state;
 
  (b) Made, manufactured or fabricated in this state for sale,
use or consumption in this state;
  (c) Shipped or transported to retail dealers in this state for
sale, use or consumption by those retail dealers;
  (d) Stored in this state for sale, use or consumption in this
state;
  (e) Sold in this state; or
  (f) Possessed by a consumer in this state.
  (3) Notwithstanding subsection (1) of this section:
  (a) Cigarettes transported into this state in quantities of
less than 200 cigarettes that are used or possessed by the first
person in possession of those cigarettes are exempt from the tax
imposed under paragraph (a) of subsection (1) of this section;
  (b) 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
  (c) 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 this section, including
but not limited to laws defining terms used in this section.
  (5) Revenues from the taxes imposed under 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 this section apply to:
  (a) Distributions of cigarettes, cigars and other tobacco
products occurring on or after January 1, 2008; and
  (b) Cigarettes that are in this state and in the possession of
a person, other than a consumer for purposes of consumption, 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
section __, chapter __, Oregon Laws 2007 (Enrolled __ Bill __)
(LC __). + }
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