75th OREGON LEGISLATIVE ASSEMBLY--2009 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 995
House Bill 2122
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski)
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 as
introduced.
Increases tax on cigarettes and other tobacco products.
Distributes tax revenues from increase.
Applies tax increase to cigarette and tobacco products
reporting periods occurring on or after January 1, 2010, or first
day of calendar month following effective date of Act.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tobacco tax; creating new provisions; amending ORS
323.505; 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. { + Sections 2, 3, 5 and 6 of this 2009 Act are
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
30 mills 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. { + All moneys received by the Department of
Revenue from the tax imposed under section 2 of this 2009 Act
shall be paid over to the State Treasurer to be held in a
suspense account established under ORS 293.445. After the payment
of refunds:
(1) ___ percent shall be transferred to the suspense account
created pursuant to ORS 323.455 (1) and credited in the same
manner as moneys received from the tax imposed by ORS 323.030
(1);
(2) ___ percent shall be transferred to the suspense account
created pursuant to ORS 323.457 (1) and credited in the same
manner as moneys received from the tax imposed by ORS 323.031
(1);
(3) ___ percent is continuously appropriated to the Department
of Human Services for the purposes of health care, public health
and health promotion; and
(4) ___ percent is continuously appropriated to the Department
of Transportation for senior transportation services. + }
SECTION 4. { + Sections 2 and 3 of this 2009 Act apply to
cigarette distributions occurring on or after the later of
January 1, 2010, or the first day of the calendar month following
the effective date of this 2009 Act. + }
SECTION 5. { + (1) Notwithstanding ORS 323.030 (3) and in
addition to and not in lieu of any other tax, for the privilege
of holding or storing cigarettes for sale, use or consumption, a
floor tax is imposed upon every dealer at the rate of 30 mills
for each cigarette in the possession of or under the control of
the dealer in this state at 12:01 a.m. on the later of January 1,
2010, or the first day of the calendar month following the
effective date of this 2009 Act.
(2) The tax imposed by this section is due and payable on or
before 20 days after the later of January 1, 2010, or the first
day of the calendar month following the effective date of this
2009 Act. Any amount of tax that is not paid within the time
required shall bear interest at the rate established under ORS
305.220 per month, or fraction of a month, from the date on which
the tax is due to be paid, until paid.
(3) On or before 20 days after the later of January 1, 2010, or
the first day of the calendar month following the effective date
of this 2009 Act, every dealer must file a report with the
Department of Revenue in such form as the department may
prescribe. The report must state the number of cigarettes in the
possession of or under the control of the dealer in this state at
12:01 a.m. on the later of January 1, 2010, or the first day of
the calendar month following the effective date of this 2009 Act
and the amount of tax due. Each report must be accompanied by a
remittance payable to the department for the amount of tax
due. + }
SECTION 6. { + Notwithstanding ORS 323.030 (3) and in addition
to and not in lieu of any other tax, for the privilege of
distributing cigarettes as a distributor and for holding or
storing cigarettes for sale, use or consumption, a floor tax and
cigarette adjustment indicia tax is imposed upon every
distributor in the amount of 75 cents for each Oregon cigarette
tax stamp bearing the designation '25,' in the amount of 60 cents
for each Oregon cigarette tax stamp bearing the designation '20,'
in the amount of 30 cents for each Oregon cigarette tax stamp
bearing the designation '10' and in the amount of 3 cents for
each Oregon cigarette tax stamp bearing the designation '1' that
is affixed to any package of cigarettes in the possession of or
under the control of the distributor at 12:01 a.m. on the later
of January 1, 2010, or the first day of the calendar month
following the effective date of this 2009 Act. + }
SECTION 7. { + (1) Every distributor must take an inventory as
of 12:01 a.m. on the later of January 1, 2010, or the first day
of the calendar month following the effective date of this 2009
Act 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 20 days after the later of January 1, 2010,
or the first day of the calendar month following the effective
date of this 2009 Act 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 the later of January 1, 2010, or the
first day of the calendar month following the effective date of
this 2009 Act; 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 the later
of January 1, 2010, or the first day of the calendar month
following the effective date of this 2009 Act.
(3) The amount of tax required to be paid with respect to the
affixed Oregon cigarette tax stamps shall be computed pursuant to
section 6 of this 2009 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.
(4) Notwithstanding ORS 323.320, the department may establish a
date after which the value of stamps sold prior to the effective
date of this 2009 Act will not be refunded or credited to a
distributor. + }
SECTION 8. { + All moneys received by the Department of
Revenue from the taxes imposed by sections 5 and 6 of this 2009
Act shall be paid over to the State Treasurer to be held in a
suspense account established under ORS 293.445. After the payment
of refunds, the net amount of revenues remaining shall be
distributed as prescribed in section 3 of this 2009 Act. + }
SECTION 9. ORS 323.505 is amended to read:
323.505. (1) A tax is hereby imposed upon the distribution of
all tobacco products in this state. The tax imposed by this
section is intended to be a direct tax on the consumer, for which
payment upon distribution is required to achieve convenience and
facility in the collection and administration of the tax. The tax
shall be imposed on a distributor at the time the distributor
distributes tobacco products.
(2) The tax imposed under this section shall be imposed at the
rate of:
(a) { - Sixty-five - } { + Ninety + } percent of the
wholesale sales price of cigars, but not to exceed 50 cents per
cigar; or
(b) { - Sixty-five - } { + Ninety + } percent of the
wholesale sales price of all tobacco products that are not
cigars.
(3) If the tax imposed under this section does not equal an
amount calculable to a whole cent, the tax shall be equal to the
next higher whole cent. However, the amount remitted to the
Department of Revenue by the taxpayer for each quarter shall be
equal only to 98.5 percent of the total taxes due and payable by
the taxpayer for the quarter.
(4) No tobacco product shall be subject to the tax if the base
product or other intermediate form thereof has previously been
taxed under this section.
SECTION 10. { + The Department of Revenue may take
administrative actions it considers necessary to implement
sections 2, 3, 5, 6 and 7 of this 2009 Act and the amendments to
ORS 323.505 by section 9 of this 2009 Act, including but not
limited to:
(1) Limiting sales of stamps prior to the effective date of
this 2009 Act;
(2) Selling stamps at the increased rate prior to the effective
date of this 2009 Act; or
(3) Establishing a date after which stamps sold prior to the
effective date of this 2009 Act will not be redeemed. + }
SECTION 11. { + The amendments to ORS 323.505 by section 9 of
this 2009 Act apply to tobacco products tax reporting periods
beginning on or after the later of January 1, 2010, or the first
day of the calendar month following the effective date of this
2009 Act. + }
SECTION 12. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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