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
 
                           C-Engrossed
 
                    Senate Joint Resolution 4
                  Ordered by the Senate June 14
Including Senate Amendments dated June 6 and June 12 and June 14
 
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 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
section __, chapter __, Oregon Laws 2007 (Enrolled __ Bill __)
(LC __). + }
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