2007 Oregon Code - Chapter 323 :: Chapter 323 - Cigarettes and Tobacco Products
Chapter 323 —
Cigarettes and Tobacco Products
2007 EDITION
CIGARETTES AND TOBACCO PRODUCTS
REVENUE AND TAXATION
CIGARETTE TAX
(General Provisions)
323.005Â Â Â Â Short
title; construction
323.010Â Â Â Â Definitions
for ORS 323.005 to 323.482
323.015    “Distribution,”
“distributor” and “distributor engaged in business in this state” defined
(Imposition of Tax)
323.030Â Â Â Â Tax
imposed; rate; exclusiveness; only one distribution taxed
323.031Â Â Â Â Additional
tax imposed; rate
323.035Â Â Â Â Distributions
by manufacturers to licensed distributors exempted
323.040Â Â Â Â Sales
to common carriers in interstate or foreign passenger service exempted; tax on
carriers
323.050Â Â Â Â Storage
in bonded warehouses exempted
323.055Â Â Â Â Sales
to federal installations and veteransÂ’ institutions exempted
323.060Â Â Â Â Consumer
exemption; payment of tax in certain cases
323.065Â Â Â Â Claim
for exemption
323.068Â Â Â Â Prepayment
of tax
323.075Â Â Â Â Distributor
to collect tax on certain sales
323.080Â Â Â Â ManufacturersÂ’
agreements for prepayment
323.085Â Â Â Â Presumptions
regarding distribution and prepayment of tax
(License and Bond)
323.105Â Â Â Â DistributorÂ’s
license
323.106Â Â Â Â Certification
of intent to comply with reporting, recordkeeping and directory participation
requirements
323.107Â Â Â Â WholesalerÂ’s
license
323.110Â Â Â Â Security
required for licensing; conditions of bond
323.115Â Â Â Â Provision
for withdrawal of surety
323.120Â Â Â Â Form
of security
323.125Â Â Â Â Liquidation
of security to pay delinquency
323.130Â Â Â Â Issuance
and display of license; circumstances for not issuing license; appeal
323.140Â Â Â Â Cancellation,
revocation or suspension of license; appeal
(Tax Stamps)
323.160Â Â Â Â Tax
stamps; rules
323.165Â Â Â Â
323.170Â Â Â Â Payment
for stamps; distributor compensation
323.175Â Â Â Â Application
for credit purchases of stamps
323.180Â Â Â Â Authorization
of agent; revocation
323.185Â Â Â Â Date
when payment for credit purchases due; extension
323.190Â Â Â Â Suspension
of credit
323.195Â Â Â Â Penalty
for nonpayment of credit purchase; interest
(Administration)
323.205Â Â Â Â ManufacturersÂ’
reports
323.211Â Â Â Â Posting
of certain information on vending machines required; seizure for failure to
comply
323.215Â Â Â Â Records
of vending machine operators
323.220Â Â Â Â Maintenance
and preservation of records
323.225Â Â Â Â TransportersÂ’
permits and records
323.230Â Â Â Â Examination
of records by department; supplemental reports; rules
323.235Â Â Â Â Subpoenas;
enforcement
323.240Â Â Â Â Search
warrants; seizure and forfeiture
323.245Â Â Â Â Forfeiture
of cigarettes and other objects; sale or redemption of other objects
323.248Â Â Â Â Seizure
and forfeiture of contraband cigarettes; appeal
323.250Â Â Â Â Exchanges
of information with other governmental units
323.255Â Â Â Â Rewards
for information
(Collections and Refunds)
323.305Â Â Â Â Determination
of amounts unpaid
323.318Â Â Â Â Refund
when increase in cigarette tax is not continued
323.320Â Â Â Â Refunds
for unused stamps and for unsalable or destroyed cigarettes; interest; rules
323.325Â Â Â Â Limitation
period on claim for refund
323.330Â Â Â Â Interest
on certain refunds
323.335Â Â Â Â Date
when payment or prepayment of tax is due
323.340Â Â Â Â Reporting
requirements for distributors
323.343Â Â Â Â Report
by persons with cigarette activity; forms
323.355Â Â Â Â Report
of sales on common carriers in interstate or foreign passenger service
323.360Â Â Â Â Report
by consumers
323.365Â Â Â Â Extension
of time for reports and payment of tax; interest
323.381Â Â Â Â Failure
to pay tax or timely file report
323.385Â Â Â Â Jeopardy
determinations
323.390Â Â Â Â Collection
of unsecured, unpaid tax after deficiency or jeopardy determination; collection
charge; warrants
323.391Â Â Â Â Withholding
warrant procedures; application for collection of unpaid cigarette taxes
323.401Â Â Â Â Refund
agreement with governing body of Indian reservation; appropriation for refunds
323.403Â Â Â Â Application
of other statutes
323.406Â Â Â Â Disclosure
of license information
(Appeals)
323.416Â Â Â Â Appeals
to Tax Court
323.420Â Â Â Â Venue;
department certificate as evidence
(Enforcement)
323.435Â Â Â Â Actions
by Attorney General; limitation on actions; authority
323.440Â Â Â Â Department
to enforce ORS 323.005 to 323.482; rules; personnel
(Distribution of Certain Revenues)
323.455Â Â Â Â Distribution
of certain cigarette tax revenues
323.457Â Â Â Â Distribution
of additional tax proceeds
323.480Â Â Â Â Civil
and criminal penalties for violations of ORS 323.005 to 323.482; forfeiture;
appeal
323.482Â Â Â Â Offense
of unlawful distribution of cigarettes; forfeiture; injunctive relief
TOBACCO PRODUCTS TAX
323.500Â Â Â Â Definitions
for ORS 323.500 to 323.645
323.505Â Â Â Â Tax
imposed on distribution; rate
323.510Â Â Â Â Dates
for payment of tax; returns; extension
323.515Â Â Â Â Exemption
for tobacco products not subject to taxation by state
323.520Â Â Â Â Application
for distributor license
323.525Â Â Â Â Security;
amount
323.530Â Â Â Â Issuance
of license; display; appeal of license denial
323.535Â Â Â Â Cancellation,
suspension or revocation of license; appeal
323.538Â Â Â Â Wholesale
sales invoices; requirements; presumptions; penalty
323.540Â Â Â Â Records;
contents; retention; examination
323.555Â Â Â Â Warehouse
records; inspection; contents; preservation
323.560Â Â Â Â Credit
of tax for tobacco products shipped out of state or returned to manufacturer
323.565Â Â Â Â Exemption
for sales to common carriers engaged in interstate or foreign passenger
service; tax on carriers or persons authorized to sell tobacco products on the
facilities of carriers
323.570Â Â Â Â Transport
of untaxed products; permit; bills of lading
323.575Â Â Â Â Administration
and enforcement; rules and procedures
323.585Â Â Â Â Penalty
and interest for failure to pay tax or timely file return
323.595Â Â Â Â Application
of other statutes
323.598Â Â Â Â Disclosure
of license information
323.600Â Â Â Â Department
determination of amount of tax; deficiency determinations; liens
323.605Â Â Â Â Immediate
determination and collection of tax
323.607Â Â Â Â Time
limit for issuing notice of deficiency for substantial reported understatement
of gross purchases net of discounts
323.610Â Â Â Â Warrant
to sheriff to levy upon and sell property of delinquent taxpayer; recording;
execution; agents; remedies for warrant returned not satisfied
323.612Â Â Â Â Seizure
and forfeiture of contraband tobacco products; appeal
323.615Â Â Â Â Refund
agreement with governing body of Indian reservation; appropriation for refunds
323.618Â Â Â Â Venue;
department certificate as evidence
323.619Â Â Â Â Actions
by Attorney General; limitation on actions; authority
323.620Â Â Â Â Remedies
cumulative
323.623Â Â Â Â Appeals
323.625Â Â Â Â Disposition
of moneys
323.630Â Â Â Â Civil
and criminal penalties for violations of ORS 323.500 to 323.645
323.632Â Â Â Â Offense
of unlawful distribution of tobacco products; forfeiture
323.635Â Â Â Â Penalties
in ORS 323.630 and 323.632 additional to other penalties
323.640Â Â Â Â Tax
on distributors in lieu of all other state, county or municipal taxes on sale
or use of tobacco
323.645Â Â Â Â Short
title
TOBACCO DELIVERY SALES
323.700Â Â Â Â Definitions
for ORS 323.700 to 323.730
323.703Â Â Â Â Delivery
sales to persons under legal minimum purchase age prohibited
323.706Â Â Â Â Requirements
for persons accepting delivery sale purchase orders
323.709Â Â Â Â Requirements
for persons mailing or shipping tobacco in delivery sales
323.712Â Â Â Â DistributorsÂ’
licenses
323.715Â Â Â Â Notice
requirements for delivery sales
323.718Â Â Â Â Requirements
for mailing or shipping delivery sale orders
323.721Â Â Â Â Delivery
sales reporting requirements
323.724Â Â Â Â Delivery
sales of untaxed cigarettes or tobacco products prohibited
323.727Â Â Â Â Penalties
for violating ORS 323.700 to 323.730; seizure and forfeiture
323.730Â Â Â Â Persons
who may bring actions
MASTER SETTLEMENT AGREEMENT
323.800Â Â Â Â Definitions
for ORS 323.800 to 323.806
323.803Â Â Â Â Findings
and purpose
323.806Â Â Â Â Required
actions by manufacturers
FEDERAL CIGARETTE LABELING AND ADVERTISING
ACT ENFORCEMENT
323.850Â Â Â Â Legislative
findings
323.853Â Â Â Â Definitions
for ORS 323.850 to 323.862
323.856Â Â Â Â Tax
stamps prohibited on cigarette packages not meeting federal requirements
323.859Â Â Â Â Notice;
effect of failure to receive notice
323.862Â Â Â Â Disclosure
of information
323.865Â Â Â Â Rulemaking
authority
CIGARETTE TAX
(General Provisions)
     323.005
Short title; construction.
(1) ORS 323.005 to 323.482 may be cited as the Cigarette Tax Act.
     (2) Except where the context otherwise
requires, the definitions given in ORS 323.005 to 323.482 govern its
construction. [1965 c.525 §§1,2]
     323.010
Definitions for ORS 323.005 to 323.482. As used in ORS 323.005 to 323.482, unless the context requires
otherwise:
     (1) “Cigarette” means any product that
contains nicotine, is intended to be burned or heated under ordinary conditions
of use and consists of or contains:
     (a) Any roll of tobacco wrapped in paper
or in any substance not containing tobacco;
     (b) Tobacco, in any form, that is
functional in the product and that, because of its appearance, the type of
tobacco used in the filler or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette; or
     (c) Any roll of tobacco that is wrapped in
any substance containing tobacco and that, because of its appearance, the type
of tobacco used in the filler or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette described in paragraph
(a) of this subsection.
     (2) “Cigarette activity in this state”:
     (a) Means importing, storing or
manufacturing cigarettes in this state, or exporting cigarettes out of this
state, in order to sell the cigarettes either within or outside this state.
     (b) Does not include importing, storing,
manufacturing or exporting of cigarettes that are to be consumed by the person
doing the importing, storing, manufacturing or exporting.
     (3) “Contraband cigarettes” means
cigarettes or packages of cigarettes:
     (a) That do not comply with the
requirements of ORS 323.005 to 323.482 or 323.856 or the cigarette tax laws of
another state or the federal government;
     (b) That bear trademarks that are
counterfeit under ORS 647.135 or other state or federal trademark laws; or
     (c) That have been sold, offered for sale
or possessed for sale in this state in violation of ORS 180.440.
     (4) “Department” means the Department of
Revenue.
     (5) “Dealer” includes every person, other
than a manufacturer or a person holding a distributorÂ’s license, who engages in
this state in the sale of cigarettes.
     (6) “Exporting” means the act of carrying
or conveying goods from a point of manufacture or storage in this state to a
location outside this state and may be further defined by the department by
rule.
     (7) “Importing” means the act of bringing
goods to a point of storage in this state from a location outside this state
and may be further defined by the department by rule.
     (8) “In this state” means within the
exterior limits of the State of
     (9) “Manufacturer” means any person who
makes, manufactures or fabricates cigarettes for sale.
     (10) “Package” means the individual
package, box or other container in which retail sales or gifts of cigarettes
are normally made or intended to be made.
     (11) “Person” includes any individual,
firm, copartnership, joint venture, association, social club, fraternal
organization, corporation, estate, trust, receiver, trustee, syndicate, this
state, any county, municipality, district or other political subdivision of the
state, or any other group or combination acting as a unit.
     (12) “
     (13) “Taxpayer” means a distributor or
other person required to pay a tax under ORS 323.005 to 323.482, and includes a
distributor required to prepay a tax under ORS 323.068.
     (14) “Transporter” means any person
importing or transporting into this state, or transporting in this state, cigarettes
obtained from a source located outside this state, or from any person not
licensed as a distributor under ORS 323.005 to 323.482. It does not include a
licensed distributor, a common carrier to whom is issued a certificate or
permit by the United States Surface Transportation Board to carry commodities
in interstate commerce, or to a carrier of federal tax-free cigarettes in bond,
or any person transporting no more than 199 cigarettes at any one time.
     (15) “Untaxed cigarette” means any
cigarette that has not yet been distributed in such manner as to result in a
tax liability under ORS 323.005 to 323.482.
     (16) “Use or consumption” includes the
exercise of any right or power over cigarettes incident to the ownership
thereof, other than the sale of the cigarettes or the keeping or retention
thereof for the purpose of sale.
     (17) “Wholesaler” means any dealer who
engages in the sale of cigarettes to any other dealer for purposes other than
use or consumption. [1965 c.525 §§3,4,5,9,10,12,13,14,15,16,17; subsection (12)
enacted as 1967 c.193 §2; 2001 c.5 §1; 2003 c.804 §§1,1a]
     323.015
“Distribution,” “distributor” and “distributor engaged in business in this
state” defined. As used in
ORS 323.005 to 323.482, unless the context requires otherwise:
     (1) “Distribution” includes:
     (a) The sale in this state of untaxed
cigarettes.
     (b) The use or consumption in this state
of untaxed cigarettes.
     (c) The receipt or retention in this state
of untaxed cigarettes at a place of business where cigarettes are customarily
sold or offered for sale to consumers.
     (d) The placing of cigarettes in vending
machines in this state.
     (e) The use or consumption by the first
person in possession in this state of untaxed cigarettes transported to the
state in quantities of more than 199 in a single shipment.
     (f) Donations of sample cigarettes or gift
cartons by the manufacturers of the cigarettes, except sample packages
containing not more than five cigarettes and labeled as “sample,” “not for sale”
or with similar wording.
     (g) The possession in this state of
untaxed cigarettes that were transported to this state in quantities of more
than 199, unless the person in possession of the untaxed cigarettes is in
possession of the untaxed cigarettes in order to transport the cigarettes to a
location outside this state.
     (2) “Distributor” includes:
     (a) Any person who distributes cigarettes.
     (b) Any person who sells or accepts orders
for cigarettes that are to be transported from a point outside this state to a
consumer within this state.
     (c) Notwithstanding the provisions of ORS
323.010 (5), any dealer who serves as the dealerÂ’s own distributor or who buys
directly from a manufacturer for resale in this state shall be deemed to be
both a distributor and a dealer under ORS 323.005 to 323.482.
     (3) “Distributor engaged in business in
this state” includes any of the following:
     (a) Any distributor maintaining, occupying
or using, permanently or temporarily, directly or indirectly, or through a
subsidiary or agent, by whatever name called, an office, place of distribution,
sales or sample room or place, warehouse or storage place or any other place of
business.
     (b) A distributor having a representative,
agent, salesperson, canvasser or solicitor operating in this state under the
authority of the distributor or its subsidiary for the purpose of selling,
delivering, or the taking of orders for cigarettes. [1965 c.525 §§6,7,8; 2001
c.5 §2; 2003 c.804 §2]
(Imposition
of Tax)
     323.030
Tax imposed; rate; exclusiveness; only one distribution taxed. (1) Every distributor shall pay a tax upon
distributions of cigarettes at the rate of 29 mills for the distribution of
each cigarette in this state.
     (2) The taxes imposed by ORS 323.005 to
323.482 are in lieu of all other state, county or municipal taxes on the sale
or use of cigarettes.
     (3) Any cigarette with respect to which a
tax has been prepaid under ORS 323.068 or has otherwise once been imposed under
ORS 323.005 to 323.482 is not subject upon a subsequent distribution to the
taxes imposed by ORS 323.005 to 323.482. [1965 c.525 §§18,30; 1971 c.535 §1;
1985 c.816 §1; 1989 c.866 §1; 1997 c.2 §1; 2003 c.804 §4]
     323.031
Additional tax imposed; rate.
(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. [2002 s.s.3 c.2 §2(1),(2);
2003 c.804 §§5c(1),(2),5e(1),(2)]
     323.035
Distributions by manufacturers to licensed distributors exempted. The taxes imposed by ORS 323.005 to 323.482
do not apply to distributions of cigarettes by the manufacturer to a licensed
distributor. [1965 c.525 §19; 2003 c.804 §6]
     323.040
Sales to common carriers in interstate or foreign passenger service exempted;
tax on carriers. The taxes
imposed by ORS 323.005 to 323.482 do not apply to the sale of cigarettes by a
distributor to a common carrier engaged in interstate or foreign passenger
service or to a person authorized to sell cigarettes on the facilities of the
carrier. Whenever cigarettes are sold by distributors to common carriers
engaged in interstate or foreign passenger service for use or sale on
facilities of the carriers, or to persons authorized to sell cigarettes on
those facilities, the tax imposed by this section may not be levied with
respect to sales of the cigarettes by the distributors, but a tax is hereby
levied upon the carriers or upon the persons authorized to sell cigarettes on
the facilities of the carriers, as the case may be, for the privilege of making
these sales in Oregon at the same rate that is imposed upon the distribution of
cigarettes in this state for each cigarette sold. The common carriers and
authorized persons shall pay the tax imposed by this section and file reports
with the Department of Revenue as provided in ORS 323.355. [1965 c.525 §20;
1985 c.78 §1; 2003 c.804 §7]
     323.045 [1965 c.525 §23; repealed by 1999 c.602 §1]
     323.050
Storage in bonded warehouses exempted. The taxes imposed by ORS 323.005 to 323.482 do not apply to cigarettes
stored in a bonded warehouse and that are nontax paid under the provisions of
chapter 52 of the Internal Revenue Act of 1954, as amended. [1965 c.525 §22;
2003 c.804 §8]
     323.055
Sales to federal installations and veteransÂ’ institutions exempted. The taxes imposed by ORS 323.005 to 323.482
do not apply to:
     (1) The sale of cigarettes to United
States Army, Air Force, Navy, Marine Corps, or Coast Guard exchanges and
commissaries and Navy or Coast Guard shipsÂ’ stores, the United States
Department of Veterans Affairs, shipsÂ’ stores maintained under federal bond, or
to any person that by virtue of the Constitution or statutes of the United
States cannot be made the subject of taxation by this state.
     (2) The sale or gift of federally tax-free
cigarettes when the cigarettes are delivered directly from the manufacturer
under Internal Revenue bond to a veteransÂ’ home or a hospital or domiciliary
facility of the United States Department of Veterans Affairs for gratuitous
issue to veterans receiving hospitalization or domiciliary care. The tax may
not be imposed with respect to the use or consumption of these cigarettes by
the institution or by the veteran patients or domiciliaries. [1965 c.525 §§21,24;
1991 c.67 §79; 2003 c.804 §9]
     323.060
Consumer exemption; payment of tax in certain cases. (1) The taxes imposed by ORS 323.005 to
323.482 do not apply to the use or consumption of untaxed cigarettes
transported to this state in a single lot or shipment of not more than 199
cigarettes, or of not more than 199 untaxed cigarettes obtained at one time
from any of the instrumentalities listed in ORS 323.055 (1).
     (2) Any taxes resulting from a
distribution of cigarettes for personal use or consumption in a quantity of
more than 199 cigarettes shall be paid by the user or consumer. [1965 c.525 §25;
2003 c.804 §10]
     323.065
Claim for exemption. Any
claim for exemption from tax under ORS 323.005 to 323.482 shall be made to the
Department of Revenue in the manner the department prescribes. [1965 c.525 §29;
2003 c.804 §11]
     323.068
Prepayment of tax. Every
distributor who sells or possesses for sale unstamped cigarettes in this state
shall prepay all taxes imposed under ORS 323.005 to 323.482 prior to the sale
of the cigarettes to any person in Oregon by purchasing cigarette tax stamps
sold pursuant to ORS 323.005 to 323.482 and affixing those stamps to the
unstamped packages of cigarettes. [2003 c.804 §3]
     323.070 [1965 c.525 §26; repealed by 1971 c.416 §3]
     323.075
Distributor to collect tax on certain sales. Every distributor engaged in business in this state and selling or
accepting orders for cigarettes with respect to the sale of which the taxes
imposed by ORS 323.005 to 323.482 are inapplicable shall, at the time of making
the sale or accepting the order or, if the purchaser is not then obligated to
pay the taxes with respect to the distribution of the cigarettes, at the time
the purchaser becomes so obligated, collect the tax from the purchaser, if the
purchaser is other than a licensed distributor, and shall give to the purchaser
a receipt therefor in the manner and form prescribed by the Department of
Revenue. [1965 c.525 §27; 1981 c.797 §8]
     323.080
ManufacturersÂ’ agreements for prepayment. Manufacturers may enter into agreements with the Department of Revenue
for the prepayment of the tax on nonexempt cigarettes given away for
advertising and any other purpose. [1965 c.525 §32]
     323.085
Presumptions regarding distribution and prepayment of tax. (1) Unless the contrary is established, it
shall be presumed that all cigarettes acquired by a distributor are untaxed
cigarettes, and that all cigarettes manufactured in this state or transported
to this state, and no longer in the possession of the distributor, have been
distributed.
     (2) All taxes paid pursuant to the
provisions of ORS 323.005 to 323.482 are intended to be direct taxes on the
retail consumer for which required prepayment, through the purchase and
affixation of tax stamps, is only to achieve convenience and facility in the
collection and administration of the tax. When the tax is paid by any person other
than the retail consumer, the payment shall be considered an advance payment to
be added to the price of the cigarette and recovered from the retail consumer.
Except for a person selling cigarettes through a vending machine or machines,
any person selling cigarettes at retail shall state or separately display in
the retail premises a notice of the amount of the tax included in the selling
price and charged or payable pursuant to ORS 323.005 to 323.482. The provisions
of this subsection do not affect the method of prepayment of the tax as
provided by ORS 323.005 to 323.482. [1965 c.525 §§28,31; 2003 c.804 §12]
     323.086 [1989 c.866 §3; repealed by 1995 c.79 §179]
     323.087 [1989 c.866 §4; repealed by 1995 c.79 §179]
     323.089 [1989 c.866 §5; repealed by 1995 c.79 §179]
     323.091 [1989 c.866 §6; repealed by 1995 c.79 §179]
(License and
Bond)
     323.105
DistributorÂ’s license. (1)
Any person engaging or seeking to engage in the sale of cigarettes as a
distributor shall file an application for a distributorÂ’s license with the
Department of Revenue. The application shall be on a form prescribed by the
department.
     (2) A distributor shall apply for and
obtain a license for each place of business at which the distributor engages in
the business of distributing cigarettes. A fee may not be charged for the
license. For the purposes of this section, a vending machine in and of itself
is not a place of business.
     (3) A person may not engage in the
business of distributing cigarettes to other persons in this state without a
license. [1965 c.525 §34; 2003 c.804 §13]
     323.106
Certification of intent to comply with reporting, recordkeeping and directory participation
requirements. A person who
files an application for a distributorÂ’s license under ORS 323.105 shall
include with the application a written statement certifying that the person
will comply with the provisions of ORS 180.435 and 180.440. [2003 c.801 §14]
     323.107
WholesalerÂ’s license. (1)
Any person engaging or seeking to engage in the sale of cigarettes as a wholesaler
shall file an application for a wholesalerÂ’s license with the Department of
Revenue. The application shall be on a form prescribed by the department. A
person may not engage in business as a wholesaler without a license. A
wholesalerÂ’s license may be canceled, suspended, revoked or reinstated by the
department as in the case of a distributorÂ’s license pursuant to ORS 323.140.
     (2) A wholesaler is subject to all the
requirements of ORS 323.005 to 323.482 imposed upon distributors relating to
making, preserving and supplying records necessary to effective administration
by the department.
     (3) A wholesaler is subject to all
penalties applicable to a distributor for a violation of the provisions of ORS
323.005 to 323.482. [1967 c.193 §3; 1999 c.21 §58; 2003 c.804 §14]
     323.110
Security required for licensing; conditions of bond. The Department of Revenue, to insure
compliance with ORS 323.005 to 323.482, shall require a licensee or an
applicant for a license as distributor to deposit with it such security as the
department may determine. The amount of the security shall be fixed by the
department but shall not be greater than two times the estimated average
monthly liability shown in the monthly reports, determined in such manner as
the department deems proper. The amount of the security may be increased or
decreased by the department subject to the limitations herein provided. Except
as provided in ORS 323.120, the security shall be in the form of a bond or
bonds executed by the distributor as principal and by a corporation, authorized
to engage in business as a surety company in Oregon under ORS 742.350 to
742.370, as surety, payable to the State of Oregon through its Department of
Revenue, conditioned upon the payment of all taxes, penalties and other obligations
of the distributor arising under ORS 323.005 to 323.482. [1965 c.525 §35; 1995
c.79 §180]
     323.115
Provision for withdrawal of surety. Every bond shall contain a provision substantially to the effect that
when the surety exercises its right to withdraw as surety, the withdrawal shall
be effective on the first day of the calendar month after receipt of the notice
by the Department of Revenue if the notice is received on or before the 15th
day of the month, otherwise the withdrawal shall be effective on the first day
of the second calendar month after receipt of the notice by the department. [1965
c.525 §36]
     323.120
Form of security. In lieu of
a bond or bonds a distributor, under such conditions as the Department of
Revenue may prescribe, may deposit with the State Treasurer an amount of lawful
money equivalent to the amount of the bond or bonds otherwise required, or the
distributor may deposit an irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008, or readily salable bonds or other
obligations of the United States, the State of Oregon, or any county of this
state of an actual market value of not less than the amount of the bond or
bonds otherwise required by ORS 323.005 to 323.482. The State Treasurer shall immediately
notify the department as to the time of receipt and the amount of money or
value of the irrevocable letter of credit or of bonds received by the State
Treasurer. [1965 c.525 §37; 1991 c.331 §54; 1997 c.631 §459]
     323.125
Liquidation of security to pay delinquency. Upon receipt of a certificate of the Department of Revenue setting
forth the amount of a distributorÂ’s delinquencies, the State Treasurer shall
pay to the department the amount so certified from the money deposited with the
State Treasurer by the distributor or from the amounts received from the sale
of bonds or other obligations deposited with the State Treasurer by the
distributor. Securities deposited with the State Treasurer which have a
prevailing market price may be sold by the State Treasurer for the purposes of
this section at private sale at a price not lower than the prevailing market
price thereof. [1965 c.525 §38]
     323.130
Issuance and display of license; circumstances for not issuing license; appeal. (1) Upon receipt of a completed application,
the statement required by ORS 323.106 and bonds or other security required by
the Department of Revenue under ORS 323.005 to 323.482, the department may
issue a distributorÂ’s license to the applicant. A separate license shall be
issued for each place of business of the distributor within the state. A
license is valid only for engaging in business as a distributor at the place
designated on the license. The license shall at all times be conspicuously
displayed at the place for which issued. The license is not transferable and is
valid until suspended or revoked.
     (2) The department may not issue a license
to an applicant if the department determines or has reason to believe that the
applicant will not comply with the provisions of ORS 323.005 to 323.482 or any
other state or federal cigarette tax law.
     (3) Notwithstanding ORS 305.280 or
323.416, a decision by the department not to issue a license to an applicant
may be appealed by the applicant to the magistrate division of the tax court
within 30 days of the date of the decision of the department in the manner
prescribed in ORS 305.404 to 305.560.
     (4) For purposes of this section, an
application to renew a distributorÂ’s license shall be considered the same as an
application for an initial distributor’s license. [1965 c.525 §39; 2003 c.801 §17;
2003 c.804 §15]
     323.135 [1965 c.525 §40; 1971 c.734 §36; 1995 c.650 §41;
repealed by 2003 c.804 §68]
     323.140
Cancellation, revocation or suspension of license; appeal. (1) The Department of Revenue may cancel,
revoke or suspend the license held by a distributor whenever the distributor
fails to:
     (a) Pay any tax or penalty due under ORS
chapter 323;
     (b) Otherwise comply with any provision of
ORS chapter 323 or any rule thereunder; or
     (c) Comply with any other state or federal
cigarette tax law.
     (2) The department may not issue a new
license to a distributor whose license has been revoked unless the department
is satisfied that the distributor will comply with the provisions of ORS
chapter 323 and the rules of the department.
     (3) If the department decides to refuse to
renew a license, or decides to suspend or revoke a license, the distributor may
appeal to the tax court.
     (4) Notwithstanding ORS 305.280 or
323.416, an appeal of a decision of the department under subsection (1) of this
section may be made to the magistrate division of the tax court within 30 days
of the decision in the manner provided in ORS 305.404 to 305.560. [1965 c.525 §41;
1971 c.734 §37; 1995 c.650 §42; 2003 c.804 §17]
     323.155 [1965 c.525 §42; 1999 c.62 §1; repealed by
2003 c.804 §68]
(Tax Stamps)
     323.160
Tax stamps; rules. (1) The
Department of Revenue shall furnish cigarette tax stamps for sale to
distributors required under ORS 323.068 to prepay the taxes imposed under ORS
323.005 to 323.482.
     (2) Stamps shall be designed according to
specifications and denominations prescribed by the department. The department
shall prescribe by rule the method and manner in which stamps are to be affixed
to packages of cigarettes and may provide for the cancellation of stamps.
     (3) An appropriate stamp shall be affixed
to each package of cigarettes prior to the distribution of the cigarettes. [1965
c.525 §§43,44; 1999 c.62 §2; 2003 c.804 §18]
     323.165
     (2) With the approval of the Oregon
Department of Administrative Services, the Department of Revenue may enter into
contracts with financial institutions to act as the departmentÂ’s agents for the
sale of stamps and matters relating to the sale of stamps. [1965 c.525 §45;
1999 c.62 §3]
     323.170
Payment for stamps; distributor compensation. (1) Stamps shall be sold to a licensed distributor at their
denominated values less a sum allowed as compensation to a distributor for
services in affixing stamps to packages as required by ORS 323.005 to 323.482.
Payment for stamps shall be made at the time of purchase, provided that a
licensed distributor, subject to the conditions and provisions of ORS 323.005
to 323.482, may be permitted to defer stamp payments.
     (2) The compensation to each distributor
for each
     (3) Payment for stamps shall be made in
the form required by the Department of Revenue. [1965 c.525 §47; 1983 c.683 §1;
1999 c.62 §4; 2002 s.s.3 c.2 §10; 2003 c.804 §18a]
     323.175
Application for credit purchases of stamps. A licensed distributor may apply to the Department of Revenue to fix
the maximum amount of deferred-payment purchases of stamps that the distributor
may make in any calendar month. Upon receipt of the application and the
security deposit required pursuant to ORS 323.110, the department shall fix the
maximum amount. The department at any time may designate the sales locations
where the distributor may make deferred-payment purchases of stamps and fix the
amount of deferred-payment purchases that the distributor may make within each
monthly period at the designated sales location. [1965 c.525 §48; 1999 c.62 §5]
     323.180
Authorization of agent; revocation. A distributor shall authorize in writing those persons who may order
purchases of stamps for the account of the distributor at a location where
stamps are sold. The authorization shall continue in effect until written
notice of revocation of the authority is delivered at the sales location in a
manner prescribed by the Department of Revenue. [1965 c.525 §50; 1999 c.62 §6]
     323.185
Date when payment for credit purchases due; extension. (1) Amounts owing for stamps purchased on
the deferred-payment basis for a calendar month shall be due and payable on or
before the 20th day of the next calendar month. Payments shall be made by a
remittance payable to the Department of Revenue.
     (2) The department for good cause may
extend the time for paying any amount owing for stamps purchased on the
deferred-payment basis. The extension may not exceed five days. The extension
may not be granted unless a request for the extension is filed with the
department within or prior to the period for which the extension may be
granted. [1965 c.525 §§49,53; 1999 c.62 §7]
     323.190
Suspension of credit. The
Department of Revenue may suspend without prior notice a distributorÂ’s
privilege to purchase stamps on the deferred-payment basis or may reduce the
amount of permissible monthly purchases fixed for the distributor, if the
distributor fails to pay promptly for stamps when payment is due, if the bond
or bonds of the distributor are canceled, become void, impaired, or
unenforceable for any reason, or if in the opinion of the department,
collection of any amounts unpaid or due from the distributor under ORS 323.005
to 323.482 are jeopardized. [1965 c.525 §51; 1999 c.62 §8]
     323.195
Penalty for nonpayment of credit purchase; interest. Any distributor who fails to pay any amount
owing to the purchase of stamps within the time required, shall pay a penalty
of 10 percent of the amount due in addition to the amount plus interest at the
rate established under ORS 305.220 for each month, or fraction thereof, from
the date on which the amount became due and payable until the date of payment. [1965
c.525 §52; 1982 s.s.1 c.16 §17; 1999 c.62 §9]
(Administration)
     323.205
ManufacturersÂ’ reports.
Every manufacturer selling and shipping cigarettes into this state to other
than a distributor licensed by this state shall deliver with each sale or
consignment of cigarettes a written statement containing the name or trade name
of both the seller and the purchaser, the date of delivery, the quantity of
cigarettes, and the trade name or brand thereof, and within 10 days shall
deliver a duplicate of each such statement to the Department of Revenue. Each
cancellation or modification of the written statement and any other information
necessary to the reconciliation of accounts shall be filed with the department
by the manufacturer at the earliest possible date. [1965 c.525 §54]
     323.210 [1965 c.525 §55; repealed by 1971 c.260 §1
(323.211 enacted in lieu of 323.210)]
     323.211
Posting of certain information on vending machines required; seizure for
failure to comply. Every
distributor and dealer or other person engaging in the sale of cigarettes
through the use of one or more vending machines, must affix in a conspicuous
place on each machine, a card or decal bearing the name, telephone number,
address, and place of business of the operator or owner who regularly places
cigarettes in the vending machine. If a person fails to comply with this
section the Department of Revenue may seize the vending machine and its
contents. [1971 c.260 §2 (enacted in lieu of 323.210)]
     323.215
Records of vending machine operators. Every distributor and dealer or other person engaging in the sale of
cigarettes through the use of one or more vending machines shall keep a
detailed record of each vending machine operated for the sale of cigarettes,
showing the location of the machine and the date of placing the machine on
location. [1965 c.525 §56]
     323.220
Maintenance and preservation of records. Any distributor and any person dealing in, transporting or storing
cigarettes in this state shall keep, on the premises, receipts, invoices and
other pertinent records related to cigarette transactions, transportation or
storage, in such form as the Department of Revenue may require. Each record
shall be preserved for five years from the time to which it relates. During the
five-year period and at any time prior to destruction of records, the
department may give written notice to a distributor not to destroy records
described in the notice without written permission from the department.
Notwithstanding other provisions of law, reports and returns filed with the
department shall be preserved by the department for at least five years. [1965
c.525 §57; 2003 c.804 §19]
     323.225
TransportersÂ’ permits and records. (1) Any transporter seeking to possess or acquire untaxed cigarettes
for transportation or transport upon the highways, roads or streets of this
state shall obtain a permit from the Department of Revenue authorizing the
transporter to possess or acquire for transportation or transport the untaxed
cigarettes, and shall have the permit in the transporting vehicle during the
period of transportation of the cigarettes. The application for the permit
shall be in such form and shall contain such information as may be prescribed
by the department. The department may issue a permit for a single load or
shipment or for a number of loads or shipments to be transported under
specified conditions.
     (2) Each transporter who transports, or
possesses or acquires for the purpose of transporting, untaxed cigarettes upon
the highways, roads or streets of this state is required to have within the
transporting vehicle invoices or bills of lading covering the shipment of
cigarettes being transported that show the name and address of the consignor or
seller, the name and address of the consignee or purchaser and the quantity and
brands of cigarettes transported. [1965 c.525 §58; 1985 c.78 §2; 2003 c.804 §20]
     323.230
Examination of records by department; supplemental reports; rules. The Department of Revenue or its authorized
representative, upon oral or written demand, may make such examinations of the
books, papers, records and equipment of persons dealing in, transporting, or
storing cigarettes and such other investigations as it may deem necessary in
carrying out the provisions of ORS 323.005 to 323.482. In addition to any other
reports required under ORS 323.005 to 323.482, the department may, by rule or
otherwise, require additional, other, or supplemental reports from
distributors, dealers, transporters, common and private carriers, warehousemen,
bailees and other persons and prescribe the form, including verification, of the
information to be given and the times for filing of such additional, other or
supplemental reports. [1965 c.525 §59]
     323.235
Subpoenas; enforcement. (1)
The Department of Revenue shall have authority, by order or subpoena to be
served with the same force and effect and in the same manner that a subpoena is
served in a civil action in the circuit court, or the Oregon Tax Court, to
require the production at any time and place it may designate of any books,
papers, accounts or other information necessary to the carrying out of ORS
323.005 to 323.482, and may require the attendance of any person having
knowledge in the premises, and may take testimony and require proof material
for the information, with power to administer oaths to such person.
     (2) If any person fails to comply with any
subpoena or order of the department or produce or permit the examination or
inspection of any books, papers, records and equipment pertinent to any
investigation or inquiry under ORS 323.005 to 323.482, or to testify to any matter
regarding which the person may be lawfully interrogated, the department may
apply to the Oregon Tax Court or to the circuit court of the county in which
the person resides or where the person may be found for an order to the person
to attend and testify, or otherwise to comply with the demand or request of the
department. The application to the court shall be by ex parte motion upon which
the court shall make an order requiring the person against whom it is directed
to comply with the request on demand of the department within 10 days after the
service of the order, or such further time as the court may grant, or to
justify the failure within that time. The order shall be served upon the person
to whom it is directed in the manner required by this state for service of
process, which service shall be required to confer jurisdiction upon the court.
Failure to obey any order issued by the court under this section is contempt of
court. The remedy provided by this section shall be in addition to other remedies,
civil or criminal, existing under the tax laws or other laws of this state. [1965
c.525 §60]
     323.240
Search warrants; seizure and forfeiture. Whenever the Department of Revenue has good reason to believe that any
cigarettes are being kept, sold, offered for sale or given away in violation of
the provisions of ORS 323.005 to 323.482 or rules issued under its authority,
it may make affidavit of that fact, describing the place or thing to be
searched, before any judge of any court in this state, and such judge shall
issue a search warrant directed to the sheriff, any constable, police officer,
or duly authorized agent of the department, commanding the sheriff, constable,
police officer or duly authorized agent of the department to enter and
diligently search any building, room in a building, place or vehicle as may be
designated in the affidavit and search warrant, and to seize such cigarettes
together with any vending machine or receptacle containing them and any vehicle
carrying them, and to arrest the person in possession or control thereof. If,
upon the return of such warrant, it shall appear that tax payable upon the
cigarettes seized has not been paid or prepaid, if prepayment is required under
ORS 323.068, the cigarettes, containers and vehicle, if any, shall be forfeited
to the state and disposed of pursuant to ORS 323.245 or 323.248. [1965 c.525 §61;
2003 c.804 §21]
     323.245
Forfeiture of cigarettes and other objects; sale or redemption of other
objects. (1) Whenever the
Department of Revenue discovers any cigarettes subject to tax under ORS 323.005
to 323.482 and with respect to which the tax has not been paid or prepaid, if
prepayment is required under ORS 323.068, it is hereby authorized and empowered
forthwith to seize and take possession of the untaxed cigarettes together with
any vending machine or receptacle in which they are held for sale and any
vehicle in which they are being transported. The seized cigarettes, vending
machine, receptacle or vehicle, not including money contained in the vending
machine or receptacle, shall be forfeited to the state, and the clear proceeds
shall be deposited with the State Treasury in the Common School Fund. The
department may, within a reasonable time thereafter, by public notice at least
20 days before the date of sale, sell the forfeited vending machines,
receptacles and vehicles at public sale. Forfeited cigarettes constitute
contraband cigarettes subject to ORS 323.248.
     (2) Notwithstanding the provisions of
subsection (1) of this section, the person from whom cigarettes were seized may
redeem any vending machine, receptacle or vehicle seized at the time the
cigarettes are seized, within 20 days from the date of seizure, by the payment
of the tax due together with a penalty of 100 percent thereof and the costs
incurred in the seizure proceeding, which total payment may not be less than
$100. The seizure, sale or redemption does not relieve the person from fine or
imprisonment as provided for violation of any provision of ORS 323.005 to
323.482.
     (3) Notwithstanding the provisions of
subsection (1) of this section, the owner of a seized vending machine,
receptacle or vehicle shall have the right of redemption provided in subsection
(2) of this section for a period of 60 days from the date of the seizure if the
owner claims that right prior to the redemption provided for in subsection (2)
of this section.
     (4) Notwithstanding the provisions of
subsections (1), (2) and (3) of this section, the owner of a vending machine
that is seized for failure to comply with ORS 323.211 may redeem the seized
vending machine within a period of 60 days from the date of the seizure by the
payment of $25 plus costs of $15 or the actual costs incurred in the seizure
proceedings, whichever is greater. [1965 c.525 §62; 1971 c.260 §3; 1987 c.858 §4;
2003 c.804 §22]
     323.248
Seizure and forfeiture of contraband cigarettes; appeal. (1) Any contraband cigarettes found by an
authorized representative of the Department of Revenue or any law enforcement
agency may be immediately seized and subject to forfeiture. If seized and
forfeited under this subsection, the cigarettes shall be destroyed.
     (2) Notwithstanding ORS 305.280 or
323.416, a seizure and forfeiture made under this section may be appealed to
the magistrate division of the tax court within 30 days of the date of the
seizure in the manner provided in ORS 305.404 to 305.560. [2003 c.804 §29]
     323.250
Exchanges of information with other governmental units. To promote administrative efficiency, the
Department of Revenue may transmit information obtained under ORS 323.005 to
323.482 to the proper officers of governmental units outside
     323.255
Rewards for information. The
Department of Revenue may pay rewards to persons, other than officers or
employees of the department, furnishing information that leads to the recovery
of tax from other persons guilty of violating the provisions of ORS 323.005 to
323.482. Such rewards shall not exceed 10 percent of the net amount of tax,
penalty and interest recovered by suit or otherwise and shall be paid only in
cases where such evasions of tax would not be disclosed by the audit of reports
or from other information available to the department. [1965 c.525 §64]
(Collections
and Refunds)
     323.305
Determination of amounts unpaid. If a distributor fails to make payment for stamps when payment is due,
the Department of Revenue may compute and determine from any available records
and information the amount required to be paid, including interest and
penalties. One or more determinations may be made of the amount due for one or
for more than one purchase. In making a determination the department may offset
overpayments with respect to purchases of stamps against underpayments for
purchases and interest and penalties on the underpayments. The department shall
give the distributor written notice of its determination in the manner required
pursuant to ORS 323.403. Except in the case of fraud, every notice of a
determination made under ORS 323.005 to 323.482 shall be given within three
years of the due date for payment of the purchase of stamps. [1965 c.525 §65;
1999 c.62 §10]
     323.310 [1965 c.525 §67; repealed by 2005 c.94 §108]
     323.315 [1965 c.525 §66; 1982 s.s.1 c.16 §18;
repealed by 2005 c.94 §108]
     323.318
Refund when increase in cigarette tax is not continued. (1) If an increase in cigarette tax imposed
under ORS 323.005 to 323.482 is provided by law and the increase provided is
for a limited time period, then at such time as the increase expires and is not
reenacted or otherwise by law continued, the Department of Revenue may enter
into a cigarette tax refund or credit agreement with any distributor. The
cigarette tax refund or credit agreement may provide for a mutually agreed upon
amount as a refund or credit to the distributor of any cigarette tax
attributable to the increase precollected for distributions of cigarettes
occurring on or after the date the increase expires.
     (2) Subsection (1) of this section is in
addition to and not in lieu of other laws allowing cigarette tax refunds or
credits.
     (3) There is continuously appropriated to
the Department of Revenue from the suspense account established under ORS
293.445 and 323.455, the amounts necessary to make refunds agreed upon under
subsection (1) of this section. [1983 c.683 §10; 1987 c.758 §12]
     323.320
Refunds for unused stamps and for unsalable or destroyed cigarettes; interest;
rules. (1) The Department of
Revenue shall, pursuant to rule, refund or credit to a distributor the
denominated values, less the discount given on their purchase, of:
     (a) Any unused or damaged stamps; or
     (b) Stamps affixed to packages of
cigarettes that, prior to or after distribution, have become unfit for use or
unsalable or have been destroyed, returned for credit or replaced, if the
department has proof of the cigarettes not being used for smoking in the State
of
     (2) Interest shall be computed, allowed
and paid with respect to a refund made under this section, at the rate
established under ORS 305.220 for each month or fraction of a month during a
period beginning 45 days after the receipt by the department of a claim for
refund. [1965 c.525 §§68,69; 1989 c.626 §10; 1999 c.62 §11; 2001 c.114 §48]
     323.325
Limitation period on claim for refund. No refund or credit for amounts overpaid for the purchase of stamps
shall be allowed or approved after three years from the due date for payment of
the purchase for which the overpayment was made, or with respect to a
determination made pursuant to ORS 323.005 to 323.482, after six months from
the date the determination becomes final, or after six months from the date of
overpayment, whichever period expires the later, unless a claim therefor is
filed with the Department of Revenue within the applicable period. [1965 c.525 §70;
1999 c.62 §12]
     323.330
Interest on certain refunds.
Unless the refund is one described in ORS 323.320, interest shall be computed,
allowed and paid upon any overpayment for the purchase of stamps at the rate
established under ORS 305.220 for each month or fraction of a month during a
period beginning 45 days after the due date for payment of the purchase for
which the overpayment was made or the date of the payment, whichever is the later,
to the time the refund is made. No refund or credit shall be made of any
interest imposed upon the claimant with respect to the amount being refunded or
credited. [1965 c.525 §71; 1987 c.758 §1; 1989 c.626 §11; 1999 c.62 §13]
     323.335
Date when payment or prepayment of tax is due. (1) Each distributor shall, along with the
report filed as prescribed under ORS 323.340, submit quarterly a remittance
payable to the Department of Revenue for the amount of tax due, but not yet
paid or prepaid, under ORS 323.005 to 323.482.
     (2) If the tax imposed under ORS 323.005
to 323.482 is not prepaid through the use of stamps, the tax shall be due and
payable monthly on or before the 20th day of the month following the calendar
month in which a distribution of cigarettes occurs.
     (3) In the case of a sale of cigarettes on
the facilities of a common carrier for which the tax is imposed pursuant to ORS
323.040, the tax shall be due and payable monthly on or before the 20th day of
the month following the calendar month in which a sale of cigarettes on the
facilities of the carrier occurs. [1965 c.525 §72; 1999 c.62 §14; 2003 c.804 §23]
     323.340
Reporting requirements for distributors. (1) On or before the 20th day of January, April, July and October,
every distributor shall file on forms prescribed by the Department of Revenue a
report containing any information the department may require to carry out the
purposes of ORS 323.005 to 323.482.
     (2) A distributor holding more than one
distributorÂ’s license and having centralized accounting may file one composite
report combining the information required of each license location under
subsection (1) of this section. [1965 c.525 §73; 1971 c.416 §1; 1999 c.62 §15]
     323.343
Report by persons with cigarette activity; forms. (1) On or before the 20th day of January,
April, July and October, every person who is not a distributor and who had
cigarette activity in this state during the preceding calendar quarter shall
file on forms prescribed by the Department of Revenue a report containing any
information the department may require to carry out the purposes of ORS 323.005
to 323.482.
     (2) If the department determines that a
report filed under this section reflects cigarette activity that constitutes
distribution in this state, the department may deem the individual a
distributor subject to the provisions of ORS 323.005 to 323.482 that relate to
distributors and the distribution of cigarettes. [2001 c.5 §4]
     323.345 [1965 c.525 §74; repealed by 1971 c.416 §3]
     323.350 [1965 c.525 §75; 1971 c.416 §2; repealed by
1999 c.62 §24]
     323.355
Report of sales on common carriers in interstate or foreign passenger service. On or before the 20th day of each month the
common carriers and authorized persons specified in ORS 323.040 shall file with
the Department of Revenue a report of the sales of cigarettes made by them on
the facilities of the carriers in Oregon in the preceding calendar month in
such detail and form as the department may prescribe, submitting with the
report the amount of the tax due under ORS 323.040. [1965 c.525 §77]
     323.360
Report by consumers. Any
consumer or user subject to the tax resulting from a distribution of cigarettes
and from whom the tax has not been paid shall on or before the 20th day of the
month following receipt of cigarettes file with the Department of Revenue a
report of the amount of cigarettes received by the consumer or user in the
preceding calendar month in the detail and form as the department may
prescribe, submitting with the report the amount of tax due. [1965 c.525 §78;
2003 c.804 §24]
     323.365
Extension of time for reports and payment of tax; interest. (1) The Department of Revenue for good cause
may extend the time for making any report or paying any amount of tax required
under ORS 323.005 to 323.482. The extension may be granted at any time provided
a request is filed with the department within or prior to the period for which
the extension may be granted. The department may not grant an extension of more
than 30 days.
     (2) Any person to whom an extension is
granted shall pay, in addition to the amount of tax, interest at the rate
established under ORS 305.220 for each month, or fraction of a month, from the
date on which the amount of tax would have been due without the extension to
the date of payment. [1965 c.525 §76; 1982 s.s.1 c.16 §19; 2003 c.46 §47]
     323.380 [1965 c.525 §79; 1982 s.s.1 c.16 §20;
repealed by 1999 c.62 §16 (323.381 enacted in lieu of 323.380)]
     323.381
Failure to pay tax or timely file report. The provisions of ORS 314.400 apply to a person required to pay a tax
due or file a report or return under ORS 323.005 to 323.482 who fails to timely
pay the tax due or who fails to timely file the report or return required. [1999
c.62 §17 (enacted in lieu of 323.380)]
     323.385
Jeopardy determinations. (1)
If the Department of Revenue believes that the collection of any amount of tax
required to be paid by any person under ORS 323.005 to 323.482 will be
jeopardized by delay, it shall thereupon make a determination of the amount of
tax, noting that fact upon the determination. The amount determined is
immediately due and payable, with interest and penalty as provided in ORS
323.381.
     (2) If the amount of the tax, interest,
and penalty specified in the jeopardy determination is not paid within 20 days
after service upon the person of notice of the determination, the determination
becomes final, unless a petition for redetermination is filed within the 20
days.
     (3) The person against whom a jeopardy
determination is made may petition for the redetermination thereof pursuant to
ORS 323.416. The person shall, however, file the petition for redetermination
with the department within 20 days after the service upon the person of notice
of the determination. The person shall at the time of filing the petition for
redetermination deposit with the department such security as it may deem
necessary to insure compliance with ORS 323.005 to 323.482. The security may be
sold by the department at public sale if it becomes necessary in order to
recover any amount due. Notice of the sale may be served upon the person who
deposited the security personally or by mail in the same manner as prescribed
pursuant to ORS 323.403. Upon any such sale, the surplus, if any, above the
amount due under ORS 323.005 to 323.482 shall be returned to the person who
deposited the security. [1965 c.525 §80; 1999 c.62 §18]
     323.390
Collection of unsecured, unpaid tax after deficiency or jeopardy determination;
collection charge; warrants.
(1) If any tax imposed by ORS 323.005 to 323.482 or any portion of such tax is
not paid within 30 days after notice of a deficiency determination is given
pursuant to ORS 323.403 or of a tax determined under ORS 323.385, and no
provision is made to secure the payment thereof by bond, deposit or otherwise,
pursuant to regulations promulgated by the Department of Revenue, the
department shall:
     (a) Assess a collection charge of $5 if
the sum of the tax, penalty and interest then due exceeds $10.
     (b) Issue a warrant directed to the
sheriff of any county of the state commanding the sheriff to levy upon and sell
the real and personal property of the taxpayer found within that county, for
the payment of the amount of the tax, with the added penalties, interest,
collection charge and the sheriffÂ’s cost of executing the warrant, and to
return such warrant to the department and pay to it the money collected by
virtue thereof by a time to be therein specified, not less than 60 days from
the date of the warrant.
     (2) The sheriff shall, within five days
after the receipt of the warrant, record with the clerk of the county a copy
thereof, and thereupon the clerk shall enter in the County Clerk Lien Record
the name of the taxpayer mentioned in the warrant, and the amount of the tax or
portion thereof and penalties and interest for which the warrant is issued and
the date when such copy is recorded. Thereupon the amount of the warrant so
recorded shall become a lien upon the title to and interest in property of the
taxpayer against whom it is issued in the same manner as a judgment that
creates a judgment lien under ORS chapter 18. The sheriff thereupon shall
proceed upon the same in all respects, with like effect and in the same manner
prescribed by law in respect to executions issued against property upon
judgment of a court of record, and shall be entitled to the same fees for
services in executing the warrant, to be added to and collected as a part of
the warrant liability.
     (3) In the discretion of the department a
warrant of like terms, force and effect may be issued and directed to any agent
authorized to collect income taxes, and in the execution thereof the agent
shall have all the powers conferred by law upon sheriffs, but is entitled to no
fee or compensation in excess of actual expenses paid in the performance of
such duty.
     (4) If a warrant is returned not satisfied
in full, the department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had recovered judgment
against the taxpayer for the amount of the tax. [1971 c.417 §2; 1983 c.696 §17;
1985 c.761 §21; 1999 c.62 §19; 2003 c.576 §204]
     323.391
Withholding warrant procedures; application for collection of unpaid cigarette
taxes. The Department of
Revenue may employ the provisions of ORS 305.182 to file warrants issued
against a taxpayer for unpaid cigarette taxes in the Office of the Secretary of
State. [1995 c.53 §6]
     323.401
Refund agreement with governing body of Indian reservation; appropriation for
refunds. (1) The Department
of Revenue is authorized to enter into a cigarette tax refund agreement with
the governing body of any Indian reservation in
     (2) There is continuously appropriated to
the Department of Revenue from the suspense account established under ORS 293.445
and 323.455, the amounts necessary to make the refunds provided by subsection
(1) of this section. [1979 c.581 §§1,2,3; 1987 c.758 §13; 2003 c.804 §25]
     323.403
Application of other statutes.
Except as otherwise provided in ORS 323.005 to 323.482 or where the context
requires otherwise, the provisions of ORS chapters 305 and 314 as to the audit
and examination of returns, periods of limitation, determination of and notices
of deficiencies, assessments, liens, delinquencies, claims for refund and refunds,
conferences, appeals to the Oregon Tax Court, stays of collection pending
appeal, confidentiality of returns and the penalties relative thereto, and the
procedures relating thereto, shall apply to the determinations of taxes,
penalties and interest under ORS 323.005 to 323.482. [1999 c.62 §21]
     323.405 [1965 c.525 §81; repealed by 1977 c.870 §55
(323.416 enacted in lieu of 323.405, 323.410 and 323.415)]
     323.406
Disclosure of license information. Notwithstanding ORS 323.403, information on the license of a
distributor or wholesaler is not confidential. The Department of Revenue may
publicly disclose or publish a list of names of distributors or wholesalers,
along with any other information set forth on a license. [2003 c.804 §16]
     323.410 [1965 c.525 §82; repealed by 1977 c.870 §55
(323.416 enacted in lieu of 323.405, 323.410 and 323.415)]
     323.415 [1965 c.525 §§83,84; repealed by 1977 c.870 §55
(323.416 enacted in lieu of 323.405, 323.410 and 323.415)]
(Appeals)
     323.416
Appeals to Tax Court. (1)
Except as otherwise provided in ORS 323.005 to 323.482, any person aggrieved by
an act or determination of the Department of Revenue or its authorized agent
under ORS 323.005 to 323.482 may appeal to the Oregon Tax Court in the time and
manner provided in ORS 305.404 to 305.560. These appeal rights shall be the
exclusive remedy available to determine the personÂ’s liability for the taxes
imposed by ORS 323.005 to 323.482.
     (2) An appeal to the Oregon Tax Court
under ORS 323.005 to 323.482 stays proceedings to collect any unpaid tax unless
the tax court believes the collection of the tax will be jeopardized by delay
or otherwise orders collection proceedings to continue. [1977 c.870 §56
(enacted in lieu of 323.405, 323.410 and 323.415); 1995 c.650 §43; 2003 c.804 §25a]
     323.420
Venue; department certificate as evidence. (1) The violation of any provision of ORS 323.005 to 323.482 or any
rule adopted thereunder shall be deemed an act committed in part at the office
of the Department of Revenue in
     (2) The certificate of the department to
the effect that a tax has not been prepaid or paid, that a return has not been
filed or that information has not been supplied, as required by or under the
provisions of ORS 323.005 to 323.482, shall be prima facie evidence that the
tax has not been prepaid or paid, that the return has not been filed or that
the information has not been supplied. [1965 c.525 §85; 2003 c.804 §26]
(Enforcement)
     323.435
Actions by Attorney General; limitation on actions; authority. (1) In addition to all other remedies
specified in ORS 323.005 to 323.482, action may be brought by the Attorney
General, at the request of the Department of Revenue, in the name of the state,
to recover the amount of any taxes, penalties and interest due under ORS
323.005 to 323.482, if the action for recovery is commenced within three years
from the time the tax is due to be paid.
     (2) The Attorney General shall have
authority to investigate any criminal violation of ORS 323.005 to 323.482. [1965
c.525 §86; 2003 c.804 §27]
     323.440
Department to enforce ORS 323.005 to 323.482; rules; personnel. (1) The Department of Revenue shall enforce
the provisions of ORS 323.005 to 323.482 and may prescribe, adopt and enforce
rules and regulations relating to the administration and enforcement of ORS
323.005 to 323.482.
     (2) The department may employ accountants,
auditors, investigators, assistants, and clerks necessary for the efficient
administration of ORS 323.005 to 323.482, or perform any other duties imposed
by ORS 323.005 to 323.482 upon the department. [1965 c.525 §§87,88; 1995 c.650 §44]
(Distribution
of Certain Revenues)
     323.455
Distribution of certain cigarette tax revenues. (1) All moneys received by the Department of
Revenue from the tax imposed by ORS 323.030 (1) 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, 89.65 percent shall be credited to the General Fund,
3.45 percent is appropriated to the cities of this state, 3.45 percent is
appropriated to the counties of this state and 3.45 percent is continuously
appropriated to the Department of Transportation for the purpose of financing
and improving transportation services for elderly individuals and individuals
with disabilities as provided in ORS 391.800 to 391.830.
     (2) The moneys so appropriated to cities
and counties shall be paid on a monthly basis within 35 days after the end of
the month for which a distribution is made. Each city shall receive such share
of the money appropriated to all cities as its population, as determined under
ORS 190.510 to 190.590 last preceding such apportionment, bears to the total
population of the cities of the state, and each county shall receive such share
of the money as its population, determined under ORS 190.510 to 190.590 last
preceding such apportionment, bears to the total population of the state.
     (3) The moneys appropriated to the
Department of Transportation under subsection (1) of this section shall be
distributed and transferred to the Elderly and Disabled Special Transportation
Fund established by ORS 391.800 at the same time as the cigarette tax moneys
are distributed to cities and counties under this section.
     (4) Of the moneys credited to the General
Fund under this section 51.92 percent shall be dedicated to funding the
maintenance and expansion of the number of persons eligible for medical
assistance under the Oregon Health Plan, or to funding the maintenance of the benefits
available under the Oregon Health Plan, or both, and 5.77 percent shall be
credited to the Tobacco Use Reduction Account established under ORS 431.832. [1965
c.525 §93; 1969 c.299 §1; 1971 c.535 §7; 1975 c.527 §1; 1981 c.797 §7; 1985
c.816 §13; 1989 c.224 §52; 1989 c.866 §7; 1997 c.2 §2; 1999 c.21 §59; 2001
c.114 §49; 2003 c.804 §§27a,27b; 2007 c.70 §§88,89]
     323.457
Distribution of additional tax proceeds. (1) Moneys received under ORS 323.031 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:
     (a) 29.37/30 of the moneys shall be
credited to the Oregon Health Plan Fund established under ORS 414.109;
     (b) 0.14/30 of the moneys are continuously
appropriated to the Oregon Department of Administrative Services for
distribution to the cities of this state;
     (c) 0.14/30 of the moneys are continuously
appropriated to the Oregon Department of Administrative Services for
distribution to the counties of this state;
     (d) 0.14/30 of the moneys are continuously
appropriated to the Department of Transportation to be distributed and
transferred to the Elderly and Disabled Special Transportation Fund established
under ORS 391.800; and
     (e) 0.21/30 of the moneys shall be
credited to the Tobacco Use Reduction Account established under ORS 431.832.
     (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 at the same
time moneys are distributed to cities, counties and the Elderly and Disabled
Special Transportation Fund under ORS 323.455. [2002 s.s.3 c.2 §2(3),(4); 2003
c.804 §§5c(3),(4),5e(3),(4); 2005 c.94 §§109,110]
     323.460 [1965 c.525 §106; repealed by 1969 c.229 §3]
     323.480
Civil and criminal penalties for violations of ORS 323.005 to 323.482;
forfeiture; appeal. (1)(a) A
civil penalty may be imposed by the Department of Revenue on any person who
violates any provision of ORS 323.005 to 323.482.
     (b) A civil penalty imposed under this
subsection may not exceed $1,000 per violation.
     (c) A penalty imposed under this section
may be appealed to the magistrate division of the tax court. Appeal of a
magistrate decision may be made as provided in ORS 305.445 and 305.501.
     (2) Any person required to obtain a
license as a distributor under ORS 323.005 to 323.482 who knowingly engages in
business as a distributor without a license or after a license has been
suspended or revoked is guilty of a Class C felony.
     (3) Any person required to make, render,
sign or verify any report under ORS 323.005 to 323.482 who makes any false
report with the intent to defraud is guilty of a Class C felony.
     (4)(a) Any transporter who knowingly
violates the provisions of ORS 323.225 is guilty of a Class C felony.
     (b) This subsection does not apply to a
transporter who transports or possesses or acquires for the purpose of
transporting fewer than 60,000 cigarettes.
     (5) Any person who knowingly violates any
provisions of ORS 323.005 to 323.482, except as otherwise provided in this
section, is guilty of a Class A misdemeanor.
     (6) Any person who files a fraudulent
refund claim under ORS 323.320 is guilty of a Class C felony.
     (7) Any person who, with intent to
defraud, makes, alters, forges or utters a false receipt or invoice recording a
sale of cigarettes in this state is guilty of a Class C felony.
     (8) In addition to any other sentence the
court may impose upon a conviction under this section, the court may order the
forfeiture of the instrumentalities used in violating ORS 323.005 to 323.482
and the proceeds resulting from a violation of ORS 323.005 to 323.482. [Formerly
323.990; 2003 c.804 §28]
     323.482
Offense of unlawful distribution of cigarettes; forfeiture; injunctive relief. (1) A person commits the crime of unlawful
distribution of cigarettes if the person knowingly sells or distributes,
possesses or transports for sale or distribution or imports for sale or
distribution cigarettes that do not comply with ORS 323.005 to 323.482 or
323.850 to 323.862, the Federal Cigarette Labeling and Advertising Act (15
U.S.C. 1331 et seq.), 19 U.S.C. 1681a or section 5754 of the Internal Revenue
Code, or implementing regulations of the federal laws listed in this
subsection.
     (2) The offense of unlawful distribution
of cigarettes is classified as follows:
     (a) If the number of cigarettes involved
in the offense over a 90-day period totals 12,000 or less, the offense is a
Class A misdemeanor.
     (b) If the number of cigarettes involved
in the offense over a 90-day period totals more than 12,000 but 60,000 or less,
the offense is a Class C felony classified as crime category 3 of the
sentencing guidelines grid of the Oregon Criminal Justice Commission.
     (c) If the number of cigarettes involved
in the offense over a 90-day period totals more than 60,000 but 120,000 or
less, the offense is a Class C felony classified as crime category 5 of the
sentencing guidelines grid of the Oregon Criminal Justice Commission.
     (d) If the number of cigarettes involved
in the offense over a 90-day period totals more than 120,000, the offense is a
Class B felony classified as crime category 7 of the sentencing guidelines grid
of the Oregon Criminal Justice Commission.
     (3) Cigarettes sold, distributed,
possessed, transported or imported in violation of subsection (1) of this
section are contraband and subject to seizure and forfeiture. If seized and
forfeited under this subsection, the cigarettes shall be destroyed.
     (4) In addition to any other sentence the
court may impose upon a conviction under this section, the court may order the
forfeiture of the instrumentalities used in violating this section and the
proceeds resulting from a violation of this section.
     (5) A person who manufactures, distributes
or sells cigarettes and who sustains a direct economic or commercial injury as
a result of a violation of subsection (1) of this section may bring in good
faith an action for appropriate injunctive relief.
     (6) The penalties set forth in this
section are in addition to and not in lieu of any other applicable penalties or
sanctions. [2001 c.696 §3; 2003 c.804 §30]
TOBACCO
PRODUCTS TAX
     323.500
Definitions for ORS 323.500 to 323.645. As used in ORS 323.500 to 323.645, unless the context otherwise
requires:
     (1) “Business” means any trade,
occupation, activity or enterprise engaged in for the purpose of selling or
distributing tobacco products in this state.
     (2) “Cigar” means a roll for smoking that
is of any size or shape and that is made wholly or in part of tobacco,
irrespective of whether the tobacco is pure or flavored, adulterated or mixed
with any other ingredient, if the roll has a wrapper made wholly or in greater part
of tobacco and if 1,000 of these rolls collectively weigh more than three
pounds. “Cigar” does not include a cigarette, as defined in ORS 323.010.
     (3) “Consumer” means any person who
purchases tobacco products in this state for the personÂ’s use or consumption or
for any purpose other than for reselling the tobacco products to another
person.
     (4) “Contraband tobacco products” means
tobacco products or packages containing tobacco products:
     (a) That do not comply with the
requirements of ORS 323.500 to 323.645;
     (b) That do not comply with the
requirements of the tobacco products tax laws of the federal government or of
other states; or
     (c) That bear trademarks that are
counterfeit under ORS 647.135 or other state or federal trademark laws.
     (5) “Department” means the Department of
Revenue.
     (6) “Distribute” means:
     (a) Bringing, or causing to be brought,
into this state from without this state tobacco products for sale, storage, use
or consumption;
     (b) Making, manufacturing or fabricating
tobacco products in this state for sale, storage, use or consumption in this
state;
     (c) Shipping or transporting tobacco
products to retail dealers in this state, to be sold, stored, used or consumed
by those retail dealers;
     (d) Storing untaxed tobacco products in this
state that are intended to be for sale, use or consumption in this state;
     (e) Selling untaxed tobacco products in
this state; or
     (f) As a consumer, being in possession of
untaxed tobacco products in this state.
     (7) “Distributor” means:
     (a) Any person engaged in the business of
selling tobacco products in this state who brings, or causes to be brought,
into this state from without the state any tobacco products for sale;
     (b) Any person who makes, manufactures or
fabricates tobacco products in this state for sale in this state;
     (c) Any person engaged in the business of
selling tobacco products without this state who ships or transports tobacco
products to retail dealers in this state, to be sold by those retail dealers;
     (d) Any person, including a retail dealer,
who sells untaxed tobacco products in this state; or
     (e) A consumer in possession of untaxed
tobacco products in this state.
     (8) “Manufacturer” means a person who
manufactures tobacco products for sale.
     (9) “Place of business” means any place
where tobacco products are sold or where tobacco products are manufactured,
stored or kept for the purpose of sale or consumption, including any vessel,
vehicle, airplane, train or vending machine.
     (10) “Retail dealer” means any person who
is engaged in the business of selling or otherwise dispensing tobacco products
to consumers. The term also includes the operators of or recipients of revenue
from all places such as smoke shops, cigar stores and vending machines, where
tobacco products are made or stored for ultimate sale to consumers.
     (11) “
     (12) “Taxpayer” includes a distributor or
other person required to pay a tax imposed under ORS 323.500 to 323.645.
     (13) “Tobacco products” means cigars,
cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed and
other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco,
fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings
and sweepings of tobacco and other kinds and forms of tobacco, prepared in such
manner as to be suitable for chewing or smoking in a pipe or otherwise, or both
for chewing and smoking, but shall not include cigarettes as defined in ORS
323.010.
     (14) “Untaxed tobacco products” means
tobacco products for which the tax required under ORS 323.500 to 323.645 has
not been paid.
     (15) “Wholesale sales price” means the
price paid for untaxed tobacco products to or on behalf of a seller by a
purchaser of the untaxed tobacco products. [1985 c.816 §15; 2001 c.982 §2; 2003
c.804 §31]
     323.505
Tax imposed on distribution; rate. (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 percent of the wholesale
sales price of cigars, but not to exceed 50 cents per cigar; or
     (b) Sixty-five 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. [1985 c.816 §16; 1997 c.2 §9; 1999 c.21 §60;
2001 c.982 §3; 2003 c.46 §48; 2003 c.804 §32]
     323.510
Dates for payment of tax; returns; extension. (1) Except as otherwise provided in ORS 323.500 to 323.645, the tax
imposed by ORS 323.505 and 323.565 shall be paid by each distributor and each
common carrier or authorized person specified in ORS 323.565 to the Department
of Revenue on or before the last day of January, April, July and October of
each year for the preceding calendar quarter.
     (2) With each quarterly payment, the
taxpayer shall submit a return to the department, in such form and containing
such information as the department shall prescribe.
     (3) The tax, penalties and interest
imposed by ORS 323.500 to 323.645 shall be a personal debt, from the time
liability is incurred, owed by the taxpayer to the State of
     (4) The returns required of distributors
and common carriers or authorized persons specified in ORS 323.565 under this
section shall be filed by the distributors, common carriers or authorized
persons regardless of whether any tax is owed by them.
     (5)(a) The department for good cause may
extend the time for making any return under ORS 323.500 to 323.645. The
extension may be granted at any time if a written request is filed with the
department within or prior to the period for which the extension may be
granted. The department may not grant an extension of more than one month.
     (b) When the time for filing a return is
extended at the request of a taxpayer, interest shall be added at the rate
established under ORS 305.220 for each month, or fraction of a month, from the
time the return was originally required to be filed to the time of payment. [1985
c.816 §17; 2003 c.46 §49; 2003 c.804 §33]
     323.515
Exemption for tobacco products not subject to taxation by state. The tax imposed by ORS 323.505 does not
apply with respect to any tobacco products which under the Constitution and
laws of the
     323.520
Application for distributor license. (1) Any person engaging or seeking to engage in the sale of tobacco
products as a distributor shall file an application for a distributorÂ’s license
with the Department of Revenue. The application shall be on a form prescribed
by the department. A distributor shall apply for and obtain a license for each
place of business at which the distributor engages in the business of
distributing tobacco products. A fee may not be charged for the license. For
the purposes of this section, a vending machine in and of itself is not a place
of business.
     (2) A person may not engage in the
business of distributing tobacco products in this state without a license. [1985
c.816 §19; 2003 c.804 §34]
     323.525
Security; amount. (1) The
Department of Revenue may require any person subject to ORS 323.500 to 323.645
to place with the department an amount of security that the department
determines is necessary to ensure compliance with ORS 323.500 to 323.645.
     (2) The amount of the security shall be
fixed by the department but, except as provided in subsection (3) of this
section, may not be greater than twice the estimated tax liability of a person
for the reporting period under ORS 323.500 to 323.645, determined in a manner
the department considers proper.
     (3) In the case of a person who, pursuant
to ORS 323.535, has appealed the decision of the department to suspend or
revoke a license, the amount of the security may not be greater than twice the
tax liability of the person for the reporting period under ORS 323.500 to
323.645, determined in a manner the department considers proper, or $10,000,
whichever is greater.
     (4) The limitations provided in this
section apply regardless of the type of security placed with the department.
The required amount of the security may be increased or decreased by the
department subject to the limitations provided in this section. [1985 c.816 §20;
2003 c.804 §35; 2005 c.94 §111]
     323.530
Issuance of license; display; appeal of license denial. (1) Upon receipt of a completed application
and any security required by the Department of Revenue under ORS 323.500 to
323.645, the department shall issue a distributorÂ’s license to an applicant. A
separate license shall be issued for each place of business of the distributor
within the state. Each license issued by the department shall include an
identification number for the license. A license is valid only for engaging in
business as a distributor at the place designated thereon, and it shall at all
times be conspicuously displayed at the place for which issued. The license is
not transferable and is valid until canceled, suspended or revoked.
     (2) The department may not issue a license
to an applicant if the department determines or has reason to believe that the
applicant will not comply with the provisions of ORS chapter 323 or any other
state or federal tobacco products tax law.
     (3) Notwithstanding ORS 305.280, a
decision by the department not to issue a license to an applicant may be
appealed by the applicant to the magistrate division of the tax court within 30
days of the date of the decision of the department in the manner prescribed in
ORS 305.404 to 305.560.
     (4) For purposes of this section, an
application to renew a distributorÂ’s license shall be considered the same as an
application for an initial distributor’s license. [1985 c.816 §21; 2003 c.804 §36]
     323.535
Cancellation, suspension or revocation of license; appeal. (1) The Department of Revenue may cancel,
suspend or revoke a license issued to a distributor if the distributor fails
to:
     (a) Pay any tax or penalty due under ORS
chapter 323;
     (b) Otherwise comply with any provision of
ORS chapter 323 or any rule adopted thereunder; or
     (c) Comply with any other state or federal
tobacco products tax law.
     (2) Notwithstanding ORS 305.280, a
decision by the department to cancel, suspend or revoke a license may be
appealed by the distributor to the magistrate division of the tax court within
30 days of the date of the decision of the department under subsection (1) of
this section, in the manner provided in ORS 305.404 to 305.560. [1985 c.816 §22;
1995 c.650 §45; 2003 c.804 §37]
     323.538
Wholesale sales invoices; requirements; presumptions; penalty. (1) A sales invoice for the wholesale sale
of tobacco products in this state, including a sales invoice required under ORS
323.540, shall contain the following:
     (a) The name and address of the seller,
the name and address of the purchaser, the date of the sale of tobacco
products, the quantity and product description of tobacco products, the price
paid for tobacco products and any discount applied in determining the price
paid for tobacco products;
     (b) The applicable license identification
number for the distributor;
     (c) A certified statement by the
distributor of the tobacco products that all taxes due under ORS 323.500 to
323.645 have been or will be paid; and
     (d) Any other information the Department
of Revenue may prescribe by rule.
     (2) A distributor must provide a copy of
the sales invoice to the purchaser of the tobacco product and the purchaser
shall retain a copy of the invoice for five years following the date of
purchase.
     (3) Each purchaser that then sells the
tobacco products to a subsequent purchaser shall provide the subsequent purchaser
with a sales invoice that meets the requirements of this section.
     (4)(a) A purchaser in possession of
tobacco products who is unable to present a sales invoice that meets the
requirements of this section is presumed to be in possession of tobacco products
for which the tax imposed under ORS 323.500 to 323.645 has not been paid.
     (b) In the case of a purchaser in
possession of untaxed tobacco products, the tax is due immediately, along with
a penalty equal to 100 percent of the tax due. Amounts due under this paragraph
may be collected as provided in ORS 323.605.
     (c) If the purchaser in possession of
untaxed tobacco products is a retail dealer, the Department of Revenue may
impose a civil penalty for the possession of untaxed tobacco products. A civil
penalty imposed under this paragraph may not exceed $1,000 per violation. A
penalty imposed under this paragraph may be appealed to the magistrate division
of the tax court in the time and manner prescribed in ORS 305.404 to 305.560.
     (5) This section does not apply to a
consumer in possession of less than 100 cigars or tobacco products with a
wholesale sales price of less than $50. [2003 c.804 §39]
     323.540
Records; contents; retention; examination. (1) Any distributor, and any person dealing in, transporting or
storing tobacco products, shall keep at each registered place of business
complete and accurate records for that place of business, including itemized
invoices, of tobacco products held, purchased, manufactured, brought in or
caused to be brought in from without the state or shipped or transported to
retail dealers in this state, and of all sales of tobacco products made, except
sales to consumers.
     (2) The records required by subsection (1)
of this section shall show the names and addresses of purchasers and other
pertinent papers and documents relating to the purchase, sale or disposition of
tobacco products.
     (3) When a licensed distributor sells
tobacco products exclusively to consumers at the address given in the
certificate and sells only tobacco products for which taxes imposed under ORS
323.500 to 323.645 have been paid prior to sale, an invoice of any individual
sale of less than 100 cigars or of tobacco products with a wholesale sales
price of less than $50 is not required. Itemized invoices of all tobacco
products transferred to other places of business owned or controlled by that
licensed distributor shall be made and retained.
     (4)(a) All books, records and other papers
and documents required by this section to be kept shall be preserved for a
period of at least five years after the initial date of the books, records and
other papers or documents, or the date of entries appearing therein, unless the
Department of Revenue, in writing, authorizes their destruction or disposal at
an earlier date.
     (b) The department or its authorized
representative, upon oral or written demand, may make such examinations of the
books, papers, records and equipment required to be kept under this section as
it may deem necessary in carrying out the provisions of ORS 323.500 to 323.645.
     (c) If the department, or any of its
agents or employees, are denied free access or are hindered or interfered with
in making such examination, the license of the distributor at such premises
shall be subject to cancellation, suspension or revocation by the department. [1985
c.816 §23; 2003 c.804 §38]
     323.545 [1985 c.816 §24; repealed by 2003 c.804 §70]
     323.550 [1985 c.816 §25; repealed by 2003 c.804 §70]
     323.555
Warehouse records; inspection; contents; preservation. Records of all deliveries or shipments of
tobacco products from any public warehouse of first destination in this state
shall be kept by the warehouse and be available to the Department of Revenue
for inspection. The records shall show the name and address of the consignee,
the date, the quantity of tobacco products delivered and any other information
the department may require. These records shall be preserved for five years
from the date of delivery of the tobacco products. [1985 c.816 §26; 2003 c.804 §41]
     323.560
Credit of tax for tobacco products shipped out of state or returned to
manufacturer. When tobacco
products, upon which the tax imposed under ORS 323.500 to 323.645 has been
reported and paid, are shipped or transported by the distributor to retail dealers
outside this state, to be sold by those retail dealers, or are returned to the
manufacturer by the distributor or destroyed by the distributor, credit for the
paid tax may be made to the distributor. [1985 c.816 §27; 2003 c.804 §42]
     323.565
Exemption for sales to common carriers engaged in interstate or foreign
passenger service; tax on carriers or persons authorized to sell tobacco
products on the facilities of carriers. The taxes imposed by ORS 323.500 to 323.645 do not apply to the sale
of tobacco products by a distributor to a common carrier engaged in interstate
or foreign passenger service or to a person authorized to sell tobacco products
on the facilities of a common carrier. Whenever tobacco products are sold by
distributors to common carriers engaged in interstate or foreign passenger
service for use or sale on facilities of the carriers, or to persons authorized
to sell tobacco products on those facilities, the tax imposed by this section
may not be levied with respect to sales of the tobacco products by the
distributors, but a tax is hereby levied upon the carriers or upon the persons
authorized to sell tobacco products on the facilities of the carriers, as the
case may be, for the privilege of making these sales in Oregon at the same rate
that is imposed upon the distribution of tobacco products in this state. The
common carriers and authorized persons shall pay the tax imposed by this
section and file returns with the Department of Revenue as provided in ORS
323.510. [1985 c.816 §27b; 2003 c.804 §43]
     323.570
Transport of untaxed products; permit; bills of lading. (1) Any transporter desiring to possess or
acquire untaxed tobacco products for transportation or transport upon the
highways, roads or streets of this state shall obtain a permit from the
Department of Revenue authorizing such transporter to possess or acquire for
transportation or transport the untaxed tobacco products, and shall have the
permit in the transporting vehicle during the period of transportation of the
tobacco products. The application for the permit shall be in such form and
shall contain such information as may be prescribed by the department. The
department may issue a permit for a single load or shipment or for a number of
loads or shipments to be transported under specified conditions.
     (2) Each transporter who shall transport
or possess or acquire for the purpose of transporting untaxed tobacco products
upon the highways, roads or streets of this state is required to have within
the transporting vehicle invoices or bills of lading covering the shipment of
tobacco products being transported which shall show the name and address of the
consignor or seller, the name and address of the consignee or purchaser and the
quantity and types of tobacco products transported. [1985 c.816 §27c]
     323.575
Administration and enforcement; rules and procedures. The Department of Revenue shall administer
and enforce ORS 323.500 to 323.645. The department is authorized to establish
those rules and procedures for the implementation and enforcement of ORS
323.500 to 323.645 that are consistent with its provisions and considered
necessary and appropriate. [1985 c.816 §28; 2003 c.804 §44]
     323.580 [1985 c.816 §29; repealed by 2003 c.804 §70]
     323.585
Penalty and interest for failure to pay tax or timely file return. The provisions of ORS 314.400 apply to a
person who fails to file a return required under ORS 323.500 to 323.645 or
fails to pay a tax at the time the tax becomes due, and no extension is granted
under ORS 323.510, or if the time granted as an extension has expired and the
person fails to file a return or pay a tax. [1985 c.816 §30; 1999 c.62 §25;
2003 c.804 §45]
     323.590 [1985 c.816 §31; repealed by 2003 c.804 §70]
     323.595
Application of other statutes.
Except as otherwise provided in ORS 323.500 to 323.645 or where the context
requires otherwise, the provisions of ORS chapters 305 and 314 as to the audit
and examination of returns, periods of limitations, determination of and
notices of deficiencies, assessments, liens, delinquencies, claims for refund
and refunds, conferences, appeals to the Oregon Tax Court, stay of collection
pending appeal, confidentiality of returns and the penalties relating thereto,
and the procedures relating thereto, apply to the determinations of taxes,
penalties and interest under ORS 323.500 to 323.645. [1985 c.816 §32; 1995
c.650 §46; 1999 c.1077 §7; 2001 c.76 §4; 2003 c.804 §47]
     323.598
Disclosure of license information. Notwithstanding ORS 323.595, information on the license of a
distributor is not confidential. The Department of Revenue may publicly
disclose or publish a list of names of distributors, along with any other
information set forth on a license. [2003 c.804 §36a]
     323.600
Department determination of amount of tax; deficiency determinations; liens. If, under ORS 323.500 to 323.645, the
Department of Revenue is not satisfied with the return of the tax or as to the
amount of tax required to be paid to this state by any person, it may compute
and determine the amount required to be paid upon the basis of the facts
contained in the return or upon the basis of any information within its
possession or that may come into its possession. One or more deficiency
determinations may be made of the amount due for one or for more than one period.
Notices of deficiency shall be given and interest on deficiencies shall be
computed as provided in ORS 305.265. Subject to ORS 314.421 and 314.423, liens
for taxes or deficiencies arise at the time of assessment, continue until the
taxes, interest and penalties are fully satisfied and may be recorded and
collected in the manner provided for the collection of delinquent income taxes.
[1985 c.816 §33; 2003 c.804 §48]
     323.605
Immediate determination and collection of tax. If the Department of Revenue believes that
the collection of any tax imposed under ORS 323.500 to 323.645 or any amount of
the tax required to be paid to the state or of any determination will be
jeopardized by delay, it shall make a determination of the tax or amount of tax
required to be collected, noting that fact upon the determination. The amount
determined is immediately due and payable and the department shall assess the
taxes, notify the person and proceed to collect the tax in the same manner and
using the same procedures as for the collection of income taxes under ORS
314.440. [1985 c.816 §34; 2003 c.804 §49]
     323.607
Time limit for issuing notice of deficiency for substantial reported
understatement of gross purchases net of discounts. If the Department of Revenue finds that an
amount of gross purchases net of discounts equal to 25 percent or more of the
gross purchases net of discounts as reported on the taxpayerÂ’s tobacco products
tax return has been omitted from the return, the department may give notice of
deficiency as prescribed in ORS 305.265 at any time within five years after the
date the return was due or filed, whichever is later. [2001 c.76 §2]
     323.610
Warrant to sheriff to levy upon and sell property of delinquent taxpayer;
recording; execution; agents; remedies for warrant returned not satisfied. (1) If any tax imposed under ORS 323.500 to
323.645, or any portion of the tax, is not paid within the time provided by law
and no provision is made to secure the payment of the tax by bond, deposit or
otherwise, pursuant to rules adopted by the Department of Revenue, the
department may issue a warrant directed to the sheriff of any county of the
state commanding the sheriff to levy upon and sell the real and personal
property of the taxpayer found within the county, for the payment of the amount
of the tax, with the added penalties, interest and the sheriffÂ’s cost of
executing the warrant, and to return the warrant to the department and pay to
it the money collected from the sale, within 60 days after the date of receipt
of the warrant.
     (2) The sheriff shall, within five days
after the receipt of the warrant, record with the clerk of the county a copy of
the warrant, and the clerk shall immediately enter in the County Clerk Lien
Record the name of the taxpayer mentioned in the warrant, the amount of the tax
or portion of the tax and penalties for which the warrant is issued and the
date the copy is recorded. The amount of the warrant so recorded shall become a
lien upon the title to and interest in real property of the taxpayer against
whom it is issued in the same manner as a judgment that creates a judgment lien
under ORS chapter 18. The sheriff immediately shall proceed upon the warrant in
all respects, with like effect and in the same manner prescribed by law in
respect to executions issued against property upon judgment of a court of
record, and shall be entitled to the same fees for services in executing the
warrant, to be added to and collected as a part of the warrant liability.
     (3) In the discretion of the department a warrant
of like terms, force and effect may be issued and directed to any agent
authorized to collect the taxes imposed by ORS 323.500 to 323.645. In the
execution of the warrant, the agent shall have all the powers conferred by law
upon sheriffs, but is entitled to no fee or compensation in excess of actual
expenses paid in the performance of such duty.
     (4) If a warrant is returned not satisfied
in full, the department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had recovered judgment
against the taxpayer for the amount of the tax. [1985 c.816 §35; 1987 c.158 §55;
2003 c.576 §205; 2003 c.804 §50]
     323.612
Seizure and forfeiture of contraband tobacco products; appeal. (1) Any contraband tobacco products found by
an authorized representative of the Department of Revenue or any law
enforcement agency may be immediately seized and subject to forfeiture. If
seized and forfeited under this subsection, the tobacco products shall be
destroyed.
     (2) Notwithstanding ORS 305.280, a seizure
and forfeiture made under this section may be appealed to the magistrate
division of the tax court within 30 days of the date of the seizure in the
manner prescribed in ORS 305.404 to 305.560. [2003 c.804 §57]
     323.615
Refund agreement with governing body of Indian reservation; appropriation for
refunds. (1) The Director of
the Department of Revenue is authorized to enter into a tobacco products tax
refund agreement with the governing body of any Indian reservation in
     (2) There is continuously appropriated to
the director, from the suspense account established under ORS 293.445 and
323.625, the amounts necessary to make the refunds provided by subsection (1)
of this section. [1985 c.816 §36; 1999 c.21 §61; 2003 c.804 §51]
     323.618
Venue; department certificate as evidence. (1) The violation of any provision of ORS 323.500 to 323.645 or any
rule adopted thereunder shall be deemed an act committed in part at the office
of the Department of Revenue in
     (2) The certificate of the department to
the effect that a tax has not been paid, that a return has not been filed or
that information has not been supplied, as required by or under the provisions
of ORS 323.500 to 323.645, shall be prima facie evidence that the tax has not
been paid, that the return has not been filed or that the information has not
been supplied. [2003 c.804 §55]
     323.619
Actions by Attorney General; limitation on actions; authority. (1) In addition to all other remedies
specified in ORS 323.500 to 323.645, action may be brought by the Attorney General,
at the request of the Department of Revenue, in the name of the state, to
recover the amount of any taxes, penalties and interest due under ORS 323.500
to 323.645, if the action for recovery is commenced within three years from the
time the tax is due to be paid.
     (2) The Attorney General shall have
authority to investigate any criminal violation of ORS 323.500 to 323.645. [2003
c.804 §59]
     323.620
Remedies cumulative. The
remedies of the state provided for in ORS 323.500 to 323.645 are cumulative. No
action taken by the Department of Revenue or Attorney General constitutes an
election by the state to pursue any remedy to the exclusion of any other remedy
for which provision is made in ORS 323.500 to 323.645. [1985 c.816 §40; 2003
c.804 §52]
     323.623
Appeals. (1) Except as
otherwise provided in ORS 323.500 to 323.645, any person aggrieved by an act or
determination of the Department of Revenue or its authorized agent under ORS
323.500 to 323.645 may appeal to the Oregon Tax Court in the time and manner
provided in ORS 305.404 to 305.560. These appeal rights shall be the exclusive
remedy available to determine the personÂ’s liability for the taxes imposed
under ORS 323.500 to 323.645.
     (2) An appeal to the Oregon Tax Court
under ORS 323.500 to 323.645 stays proceedings to collect any unpaid tax unless
the tax court believes the collection of the tax will be jeopardized by delay
or otherwise orders collection proceedings to continue. [2003 c.804 §46]
     323.625
Disposition of moneys. All
moneys received by the Department of Revenue under ORS 323.500 to 323.645 shall
be deposited in the State Treasury and credited to a suspense account
established under ORS 293.445. After payment of refunds or credits arising from
erroneous overpayments, the balance of the money shall be credited to the
General Fund. Of the amount credited to the General Fund under this section
41.54 percent shall be dedicated to funding the maintenance and expansion of
the number of persons eligible for medical assistance under the Oregon Health
Plan, or to funding the maintenance of the benefits available under the Oregon
Health Plan, or both, and 4.62 percent shall be credited to the Tobacco Use
Reduction Account established under ORS 431.832. [1985 c.816 §42; 1997 c.2 §10;
1999 c.21 §62; 2003 c.804 §§53,53a]
     323.630
Civil and criminal penalties for violations of ORS 323.500 to 323.645. (1)(a) A civil penalty may be imposed by the
Department of Revenue on any person who violates any provision of ORS 323.500
to 323.645.
     (b) A civil penalty imposed under this
subsection may not exceed $1,000 per violation.
     (c) A penalty imposed under this
subsection may be appealed to the magistrate division of the tax court in the
time and manner prescribed in ORS 305.404 to 305.560.
     (2) Any person required to obtain a
license as a distributor under ORS 323.500 to 323.645 who knowingly engages in
business as a distributor without a license or after a license has been
suspended or revoked is guilty of a Class C felony.
     (3) Any person required to make, render,
sign or verify any report under ORS 323.500 to 323.645 who makes any false
report with the intent to defraud is guilty of a Class C felony.
     (4) Any transporter who knowingly violates
the provisions of ORS 323.570 is guilty of a Class C felony.
     (5) Any person who knowingly violates any
provision of ORS 323.500 to 323.645, except as otherwise provided in this
section, is guilty of a Class A misdemeanor.
     (6) Any person who, with intent to
defraud, makes, alters, forges or utters a false receipt or invoice recording a
sale of tobacco products in this state is guilty of a Class C felony.
     (7) In addition to any other sentence the
court may impose upon a conviction under this section, the court may order the
forfeiture of the instrumentalities used in violating ORS 323.500 to 323.645
and the proceeds resulting from a violation of ORS 323.500 to 323.645. [2003
c.804 §56]
     323.632
Offense of unlawful distribution of tobacco products; forfeiture. (1) A person commits the crime of unlawful
distribution of tobacco products if the person knowingly sells or distributes,
possesses or transports for sale or distribution or imports for sale or
distribution tobacco products that do not comply with ORS 323.500 to 323.645.
     (2) The offense of unlawful distribution
of tobacco products is classified as follows:
     (a) If the amount of tobacco products tax
avoided in committing the offense over a 90-day period totals less than $1,000,
the offense is a Class A misdemeanor.
     (b) If the amount of tobacco products tax
avoided in committing the offense over a 90-day period totals $1,000 or more,
but less than $5,000, the offense is a Class C felony classified as crime
category 3 of the sentencing guidelines grid of the Oregon Criminal Justice
Commission.
     (c) If the amount of tobacco products tax
avoided in committing the offense over a 90-day period totals $5,000 or more,
but less than $10,000, the offense is a Class C felony classified as crime
category 5 of the sentencing guidelines grid of the Oregon Criminal Justice
Commission.
     (d) If the amount of tobacco products tax
avoided in committing the offense over a 90-day period totals $10,000 or more,
the offense is a Class B felony classified as crime category 7 of the
sentencing guidelines grid of the Oregon Criminal Justice Commission.
     (3) Tobacco products sold, distributed,
possessed, transported or imported in violation of subsection (1) of this
section are contraband and subject to seizure and forfeiture. If seized and
forfeited under this subsection, the tobacco products shall be destroyed.
     (4) In addition to any other sentence the
court may impose upon a conviction under this section, the court may order the
forfeiture of the instrumentalities used in violating this section and the
proceeds resulting from a violation of this section.
     (5) As used in this section, “tobacco
products tax” means the amount of tax due under ORS 323.500 to 323.645, if the
tax were timely paid upon first distribution of the tobacco products in this
state. [2003 c.804 §58; 2007 c.40 §1]
     323.635
Penalties in ORS 323.630 and 323.632 additional to other penalties. The penalties provided in ORS 323.630 and
323.632 are additional to all other penalties provided under ORS 323.500 to
323.645. [1985 c.816 §44; 2003 c.804 §54]
     323.640
Tax on distributors in lieu of all other state, county or municipal taxes on
sale or use of tobacco. (1)
The taxes imposed by ORS 323.505 are in lieu of all other state, county or
municipal taxes on the sale or use of tobacco products.
     (2) Any tobacco product with respect to
which a tax has once been imposed under ORS 323.505 shall not be subject upon a
subsequent distribution to the taxes imposed by ORS 323.505. [1985 c.816 §44a]
     323.645
Short title. ORS 323.500 to
323.645 may be cited as the Tobacco Products Tax Act. [1985 c.816 §46]
TOBACCO
DELIVERY SALES
     323.700
Definitions for ORS 323.700 to 323.730. As used in ORS 323.700 to 323.730:
     (1) “Consumer” means an individual who is
not a licensed distributor of tobacco or a licensed tobacco retailer.
     (2) “Delivery sale”:
     (a) Means a sale of tobacco to a consumer
in this state in which:
     (A) The purchaser submits the order for
the sale by means of a telephone or other method of voice transmission, a
delivery service or the Internet or other online service; or
     (B) The tobacco is delivered by use of a
delivery service.
     (b) Includes any sale of tobacco described
in paragraph (a) of this subsection, regardless of whether the seller is
located within Indian country or is otherwise within or outside of this state.
     (c) Does not include any sale to a
licensed distributor or licensed tobacco retailer in this state.
     (3) “Delivery service” means any person
that is engaged in the commercial delivery of letters, packages or other
containers.
     (4) “Indian country” has the meaning given
that term in 18 U.S.C. 1151.
     (5) “Legal minimum purchase age” means the
minimum age at which an individual may purchase tobacco in this state.
     (6) “Mail” means the use of the United
States Postal Service for delivery of letters, packages or other containers.
     (7) “Person accepting a purchase order for
a delivery sale” means a person who fills a tobacco purchase order given by a
consumer and processes the order for mail, shipping or other delivery, or who
contracts with another party to provide delivery service.
     (8) “Purchase order” means a written or
electronic document authorizing a seller to provide goods.
     (9) “
     (10) “Shipping container” means a
container in which tobacco is packaged in connection with a delivery sale.
     (11) “Shipping documents” means bills of
lading, airbills or any other documents used to evidence the undertaking by a
delivery service to deliver letters, packages or other containers.
     (12) “Tobacco” means cigarettes, as
defined in ORS 323.010, or tobacco products, as defined in ORS 323.500. [2003
c.804 §73]
     323.703
Delivery sales to persons under legal minimum purchase age prohibited. A person may not make a delivery sale of
tobacco to a person who is under the legal minimum purchase age. [2003 c.804 §74]
     323.706
Requirements for persons accepting delivery sale purchase orders. A person accepting a purchase order for a
delivery sale, prior to the first mailing, shipment or other delivery of
tobacco to a consumer, shall comply with:
     (1) The age verification requirements set
forth in ORS 323.709;
     (2) The distributor license requirements
set forth in ORS 323.712;
     (3) The disclosure requirements set forth
in ORS 323.715;
     (4) The mailing or shipping requirements
set forth in ORS 323.718;
     (5) The reporting requirements set forth
in ORS 323.721; and
     (6) All other laws of this state
applicable to sales of tobacco that occur entirely within
     323.709
Requirements for persons mailing or shipping tobacco in delivery sales. A person may not mail or ship tobacco in
connection with a delivery sale order unless the person, before mailing or
shipping the tobacco, does all of the following:
     (1) Obtains a certification from the
prospective consumer that includes a written statement signed by the prospective
consumer that:
     (a) Certifies the prospective consumer’s
address and that the prospective consumer is at least the legal minimum
purchase age; and
     (b) Confirms that the prospective consumer
understands that signing another personÂ’s name to the certification is illegal,
that the sale of tobacco to individuals under the legal minimum purchase age is
illegal and that the purchase of tobacco by individuals under the legal minimum
purchase age is illegal under ORS 167.401;
     (2) Verifies the information contained in
the certification against a commercially available database of
government-collected information showing the age or date of birth of the
individual placing the order and obtains a photocopy or other image of a valid,
government-issued identification stating the age or date of birth of the
individual placing the order;
     (3) Provides a notice to the prospective
consumer, via electronic mail or other means, that meets the requirements of
ORS 323.715; and
     (4) In the case of an order for tobacco
placed through an Internet website, receives payment for the delivery sale from
the prospective purchaser by a credit or debit card that has been issued in the
name of the prospective purchaser or by a personal check issued by the
prospective purchaser. [2003 c.804 §76]
     323.712
DistributorsÂ’ licenses. (1)
Each person seeking to engage in delivery sales of tobacco to purchasers in
this state shall apply for and obtain:
     (a) A cigarette distributor’s license
under ORS 323.105, if the person intends to engage in cigarette delivery sales;
and
     (b) A tobacco products distributor’s
license under ORS 323.520, if the person intends to engage in tobacco products
delivery sales.
     (2) A person may not engage in delivery
sales in this state without first obtaining each applicable distributorÂ’s
license under subsection (1) of this section. [2003 c.804 §76a]
     323.715
Notice requirements for delivery sales. The notice required under ORS 323.709 (3) shall include:
     (1) A prominent and clearly legible
statement that tobacco sales to persons under the legal minimum purchase age
are illegal;
     (2) A prominent and clearly legible
statement that sales of tobacco are restricted to those individuals who provide
verifiable proof of age in accordance with ORS 323.709; and
     (3) A prominent and clearly legible
statement that sales of cigarettes are subject to tax under ORS 323.005 to
323.482 and that sales of other tobacco products are subject to tax under ORS
323.500 to 323.645, and an explanation of how the applicable tax has been paid
or is to be paid. [2003 c.804 §77]
     323.718
Requirements for mailing or shipping delivery sale orders. (1) Each person accepting a purchase order
for a delivery sale, in connection with the delivery sale order, shall:
     (a) Include as part of the shipping documents
a clear and conspicuous statement providing as follows: “TOBACCO: OREGON LAW
PROHIBITS SHIPPING TO INDIVIDUALS UNDER 18 AND REQUIRES THE PAYMENT OF ALL
APPLICABLE TAXES”; and
     (b) Use a method of mail, shipping or
other delivery of tobacco described in this paragraph as follows:
     (A) Unless subparagraph (B) of this
paragraph applies, use a method of shipping or other delivery that obligates
the delivery service to require:
     (i) The consumer placing the delivery sale
order, or another individual of at least the legal minimum purchase age who
resides at the residence of the consumer, to sign to accept delivery of the
shipping container; and
     (ii) Proof, in the form of a valid,
government-issued identification bearing a photograph of the individual who
signs to accept delivery of the shipping container, demonstrating that the
individual who signs to accept delivery:
     (I) Is either the consumer or another
individual residing at the residence of the consumer; and
     (II) Is at least the legal minimum purchase
age, except that proof of age is required only if the individual appears to be
under 27 years of age.
     (B) If the person is fulfilling a purchase
order for a delivery sale by mailing tobacco, to the extent permitted by the
United States Postal Service, use a method of mailing that requires the postal
service to require:
     (i) The consumer placing the delivery sale
order, or another individual of at least the legal minimum purchase age
residing at the residence of the consumer, to sign to accept delivery of the
shipping container; and
     (ii) Proof, in the form of a valid,
government-issued identification bearing a photograph of the individual who
signs to accept delivery of the shipping container, demonstrating that the
individual who signs to accept delivery:
     (I) Is either the consumer or another
individual residing at the residence of the consumer; and
     (II) Is at least the legal minimum
purchase age, except that proof of age is required only if the individual
appears to be under 27 years of age.
     (2) If the person accepting a purchase
order for a delivery sale delivers the tobacco without using a delivery service
or the United States Postal Service, the person shall comply with all
requirements of ORS 323.700 to 323.730 that apply to a delivery service and
shall be in violation of this section if the person fails to comply with all
requirements applicable to a delivery service. [2003 c.804 §78]
     323.721
Delivery sales reporting requirements. (1) Prior to delivering, mailing or shipping tobacco in connection
with a delivery sale, a person who accepts purchase orders for delivery sales
shall file a statement with the Department of Revenue. The statement shall set
forth the name, trade name and address of the principal place of business of
the seller and any other place of business of the seller.
     (2) Not later than the 10th day of each
calendar month, each person that has made a delivery sale or delivered, mailed
or shipped tobacco or contracted with another party for delivery service in
connection with a delivery sale made during the previous calendar month shall
file a memorandum of sale or a copy of the delivery sales invoice with the
Department of Revenue. The memorandum or delivery sales invoice shall provide,
for each delivery sale made during the previous calendar month:
     (a) The name and address of the consumer
to whom the delivery sale was made;
     (b) The brand or brands of the tobacco
that were sold in the delivery sale; and
     (c) The quantity of tobacco that was sold
in the delivery sale.
     (3) A person that satisfies the
requirements of 15 U.S.C. 376 is deemed to meet the requirements of this
section. [2003 c.804 §79]
     323.724
Delivery sales of untaxed cigarettes or tobacco products prohibited. (1) A person that accepts a purchase order
for a delivery sale of cigarettes may not make a delivery sale of cigarettes to
a person in this state if the packages in which the cigarettes are contained do
not bear the proper tax stamps required to be affixed to the packages of
cigarettes under ORS 323.005 to 323.482.
     (2) A person that accepts a purchase order
for a delivery sale of tobacco products may not make a delivery sale of tobacco
products in this state if the sales invoice for the delivery sale does not
comply with ORS 323.538. [2003 c.804 §80]
     323.727
Penalties for violating ORS 323.700 to 323.730; seizure and forfeiture. (1) Except as otherwise provided in this
section:
     (a) The first time a person violates a
provision of ORS 323.700 to 323.730, the person shall be subject to a penalty
of $1,000 or five times the retail value of the tobacco involved in the
violation, whichever is greater; and
     (b) In the case of a second or subsequent
violation of ORS 323.700 to 323.730, the person shall be subject to a penalty
of $5,000 or five times the retail value of the tobacco involved in the
violation, whichever is greater.
     (2) A person who knowingly violates a
provision of ORS 323.700 to 323.730 or who knowingly submits a false
certification under ORS 323.709 under the name of another person:
     (a) Shall be subject to a penalty of
$10,000 or five times the retail value of the tobacco involved, whichever is
greater; or
     (b) May be imprisoned for a period of not
more than five years.
     (3) A person who accepts a purchase order
for a delivery sale and, in connection with the sale, fails to pay a tax due
under ORS 323.005 to 323.482 or 323.500 to 323.645 shall pay a penalty of five
times the amount of tax due and not timely paid under ORS 323.005 to 323.482 or
323.500 to 323.645.
     (4) The penalties prescribed under this section
are in addition to and not in lieu of any other penalty applicable under the
laws of this state.
     (5) Any tobacco sold or attempted to be
sold in a delivery sale that does not meet the requirements of ORS 323.700 to
323.730 may be immediately seized and subject to forfeiture. Tobacco seized and
forfeited under this subsection shall be destroyed.
     (6) Any fixtures, equipment, materials or
other personal property on the premises of a person who violates ORS 323.700 to
323.730 may be immediately seized and subject to forfeiture. Property seized
and forfeited under this subsection may be sold or destroyed. [2003 c.804 §81]
     323.730
Persons who may bring actions.
The Attorney General or any person that holds a permit, issued under section
5713 of the Internal Revenue Code, to engage in business as a manufacturer or
importer of tobacco products or as an export warehouse proprietor, may bring an
action to enforce the provisions of ORS 323.700 to 323.730 or to prevent or
restrain violations of ORS 323.700 to 323.730. [2003 c.804 §82]
MASTER
SETTLEMENT AGREEMENT
     323.800
Definitions for ORS 323.800 to 323.806. As used in ORS 323.800 to 323.806:
     (1) “Adjusted for inflation” means
increased in accordance with the formula for inflation adjustment set forth in
Exhibit C to the Master Settlement Agreement.
     (2)(a) “Affiliate” means a person who
directly or indirectly owns or controls, is owned or controlled by, or is under
common ownership or control with, another person.
     (b) For purposes of defining “affiliate”:
     (A) The terms “owns,” “is owned” and “ownership”
mean ownership of an equity interest, or the equivalent thereof, of 10 percent
or more; and
     (B) The term “person” means an individual,
partnership, committee, association, corporation or any other organization or
group of persons.
     (3) “Allocable share” means Allocable
Share as that term is defined in the Master Settlement Agreement.
     (4)(a) “Cigarette” means any product that
contains nicotine, is intended to be burned or heated under ordinary conditions
of use, and consists of or contains:
     (A) Any roll of tobacco wrapped in paper
or in any substance not containing tobacco;
     (B) Tobacco, in any form, that is
functional in the product and that because of its appearance, the type of
tobacco used in the filler, or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette; or
     (C) Any roll of tobacco wrapped in any
substance containing tobacco that, because of its appearance, the type of
tobacco used in the filler, or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette described in subparagraph
(A) of this paragraph.
     (b) The term “cigarette” includes “roll-your-own
tobacco” (i.e., tobacco that, because of its appearance, type, packaging or
labeling, is suitable for use and likely to be offered to, or purchased by,
consumers as tobacco for making cigarettes). For purposes of this paragraph,
0.09 ounces of roll-your-own tobacco shall constitute one individual cigarette.
     (5) “Master Settlement Agreement” means
the settlement agreement (and related documents) entered into on November 23,
1998, by the State of Oregon and leading United States tobacco product
manufacturers.
     (6) “Qualified escrow fund” means an
escrow arrangement with a federally or state chartered financial institution
having no affiliation with any tobacco product manufacturer and having assets
of at least $1 billion where such arrangement requires that such financial
institution hold the escrowed fundsÂ’ principal for the benefit of releasing
parties and prohibits the tobacco product manufacturer who is placing the funds
into escrow from using, accessing or directing the use of the escrowed fundsÂ’
principal except as consistent with ORS 323.806 (2)(b).
     (7) “Released claims” means Released
Claims as that term is defined in the Master Settlement Agreement.
     (8) “Releasing parties” means Releasing
Parties as that term is defined in the Master Settlement Agreement.
     (9)(a) “Tobacco product manufacturer”
means an entity that, after October 23, 1999, directly (and not exclusively
through any affiliate):
     (A) Manufactures cigarettes anywhere that
such manufacturer intends to be sold in the United States, including cigarettes
intended to be sold in the United States through an importer (except where such
importer is an Original Participating Manufacturer (as that term is defined in
the Master Settlement Agreement) that will be responsible for the payments
under the Master Settlement Agreement with respect to such cigarettes as a
result of the provisions of subsection II(mm) of the Master Settlement
Agreement and that pays the taxes specified in subsection II(z) of the Master
Settlement Agreement, and provided that the manufacturer of such cigarettes
does not market or advertise such cigarettes in the United States);
     (B) Is the first purchaser anywhere for
resale in the
     (C) Becomes a successor of an entity described
in subparagraph (A) or (B) of this paragraph.
     (b) The term “tobacco product manufacturer”
does not include an affiliate of a tobacco product manufacturer unless such
affiliate is itself a tobacco product manufacturer under paragraph (a)(A), (B) or
(C) of this subsection.
     (10) “Units sold” means the number of
individual cigarettes sold in the State of Oregon by the applicable tobacco
product manufacturer (whether directly or through a distributor, retailer or
similar intermediary or intermediaries) during the year in question, as
measured by excise taxes collected by the State of Oregon on roll-your-own
tobacco containers or on packs bearing the excise tax stamp of this state. The
Department of Revenue shall promulgate such rules as are necessary to ascertain
the amount of state excise tax paid on the cigarettes of such tobacco product
manufacturer for each year. [Formerly 293.533; 2005 c.22 §228; 2007 c.707 §1]
     Note: 323.800 to 323.806 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
323 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     323.803
Findings and purpose. (1)
Cigarette smoking presents serious public health concerns to the State of
     (2) Cigarette smoking also presents
serious financial concerns for this state. Under certain health care programs,
the State of
     (3) Under those health care programs, the State
of
     (4) It is the policy of the State of
     (5) On November 23, 1998, leading
     (a) To pay substantial sums to the State
of
     (b) To fund a national foundation devoted
to the interests of public health; and
     (c) To make substantial changes in their
advertising and marketing practices and corporate culture, with the intention
of reducing underage smoking.
     (6) It would be contrary to the policy of
the State of Oregon if those tobacco product manufacturers who determine not to
enter into such a settlement could use a resulting cost advantage to derive
large, short-term profits in the years before liability may arise without
ensuring that this state will have an eventual source of recovery from them if
they are proven to have acted culpably. It is thus in the interest of the State
of Oregon to require that such manufacturers establish a reserve fund to
guarantee a source of compensation and to prevent such manufacturers from
deriving large, short-term profits and then becoming judgment-proof before
liability may arise. [Formerly 293.530]
     Note: See note under 323.800.
     323.806
Required actions by manufacturers. Any tobacco product manufacturer selling cigarettes to consumers
within the State of
     (1) Become a Participating Manufacturer
(as that term is defined in section II(jj) of the Master Settlement Agreement)
and generally perform its financial obligations under the Master Settlement
Agreement; or
     (2)(a) Place into a qualified escrow fund
by April 15 of the year following the year in question the following amounts
(as such amounts are adjusted for inflation):
     (A) For 1999, $0.0094241 per unit sold
after October 23, 1999.
     (B) For 2000, $0.0104712 per unit sold.
     (C) For each of the years 2001 and 2002,
$0.0136125 per unit sold.
     (D) For each of the years 2003 through
2006, $0.0167539 per unit sold.
     (E) For 2007 and each year thereafter,
$0.0188482 per unit sold.
     (b) A tobacco product manufacturer that
places funds into escrow pursuant to paragraph (a) of this subsection shall
receive the interest or other appreciation on such funds as earned. Such funds
themselves shall be released from escrow only under the following
circumstances:
     (A) To pay a judgment or settlement on any
released claim brought against such tobacco product manufacturer by the State
of
     (B) To the extent that a tobacco product
manufacturer establishes that the amount it was required to place into escrow
on account of units sold in Oregon in a particular year was greater than the
Master Settlement Agreement payments, as determined pursuant to section IX(i) of
that agreement after final determination of all adjustments, that the
manufacturer would have been required to make on account of such units sold had
it been a Participating Manufacturer (as that term is defined in the Master
Settlement Agreement), the excess shall be released from escrow and revert back
to such tobacco product manufacturer; or
     (C) To the extent not released from escrow
under subparagraph (A) or (B) of this paragraph, funds shall be released from
escrow and revert back to such tobacco product manufacturer 25 years after the
date on which they were placed into escrow.
     (c) Each tobacco product manufacturer that
elects to place funds into escrow pursuant to this subsection shall annually
certify to the Attorney General that it is in compliance with this subsection.
The Attorney General may bring a civil action on behalf of the State of
     (A) Be required within 15 days to place
such funds into escrow as shall bring such manufacturer into compliance with
this subsection. The court, upon a finding of a violation of this subsection,
may impose a civil penalty to be paid to the General Fund of this state in an
amount not to exceed five percent of the amount improperly withheld from escrow
per day of the violation and in a total amount not to exceed 100 percent of the
original amount improperly withheld from escrow;
     (B) In the case of a knowing violation, be
required within 15 days to place such funds into escrow as shall bring such
manufacturer into compliance with this subsection. The court, upon a finding of
a knowing violation of this subsection, may impose a civil penalty to be paid
to the General Fund of this state in an amount not to exceed 15 percent of the
amount improperly withheld from escrow per day of the violation and in a total
amount not to exceed 300 percent of the original amount improperly withheld
from escrow; and
     (C) In the case of a second knowing
violation, be prohibited from selling cigarettes to consumers within the State
of
     Note: The amendments to 323.806 [formerly 293.535]
by section 22, chapter 801, Oregon Laws 2003, become operative only if there is
a final judgment that invalidates the amendments to 323.806 by section 21,
chapter 801, Oregon Laws 2003. If the court enters a final judgment that
invalidates the amendments to 323.806 by section 21, chapter 801, Oregon Laws
2003, the amendments to 323.806 by section 22, chapter 801, Oregon Laws 2003,
become operative 31 days after entry of the final judgment. See section 25,
chapter 801, Oregon Laws 2003. The text that, if the court enters a final
judgment that invalidates the amendments to 323.806 by section 21, chapter 801,
Oregon Laws 2003, is operative 31 days after entry of the final judgment is set
forth for the userÂ’s convenience.
     323.806. Any tobacco product manufacturer selling
cigarettes to consumers within the State of
     (1) Become a Participating Manufacturer
(as that term is defined in section II(jj) of the Master Settlement Agreement)
and generally perform its financial obligations under the Master Settlement
Agreement; or
     (2)(a) Place into a qualified escrow fund
by April 15 of the year following the year in question the following amounts
(as such amounts are adjusted for inflation):
     (A) For 1999, $0.0094241 per unit sold
after October 23, 1999.
     (B) For 2000, $0.0104712 per unit sold.
     (C) For each of the years 2001 and 2002,
$0.0136125 per unit sold.
     (D) For each of the years 2003 through
2006, $0.0167539 per unit sold.
     (E) For 2007 and each year thereafter,
$0.0188482 per unit sold.
     (b) A tobacco product manufacturer that
places funds into escrow pursuant to paragraph (a) of this subsection shall receive
the interest or other appreciation on such funds as earned. Such funds
themselves shall be released from escrow only under the following
circumstances:
     (A) To pay a judgment or settlement on any
released claim brought against such tobacco product manufacturer by the State
of
     (B) To the extent that a tobacco product
manufacturer establishes that the amount it was required to place into escrow
in a particular year was greater than this stateÂ’s allocable share of the total
payments that such manufacturer would have been required to make in that year
under the Master Settlement Agreement (as determined pursuant to section
IX(i)(2) of the Master Settlement Agreement, and before any of the adjustments
or offsets described in section IX(i)(3) of that agreement other than the
inflation adjustment) had it been a Participating Manufacturer (as that term is
defined in the Master Settlement Agreement), the excess shall be released from
escrow and revert back to such tobacco product manufacturer; or
     (C) To the extent not released from escrow
under subparagraph (A) or (B) of this paragraph, funds shall be released from
escrow and revert back to such tobacco product manufacturer 25 years after the
date on which they were placed into escrow.
     (c) Each tobacco product manufacturer that
elects to place funds into escrow pursuant to this subsection shall annually
certify to the Attorney General that it is in compliance with this subsection.
The Attorney General may bring a civil action on behalf of the State of
     (A) Be required within 15 days to place
such funds into escrow as shall bring such manufacturer into compliance with
this subsection. The court, upon a finding of a violation of this subsection,
may impose a civil penalty to be paid to the General Fund of this state in an
amount not to exceed five percent of the amount improperly withheld from escrow
per day of the violation and in a total amount not to exceed 100 percent of the
original amount improperly withheld from escrow;
     (B) In the case of a knowing violation, be
required within 15 days to place such funds into escrow as shall bring such
manufacturer into compliance with this subsection. The court, upon a finding of
a knowing violation of this subsection, may impose a civil penalty to be paid
to the General Fund of this state in an amount not to exceed 15 percent of the
amount improperly withheld from escrow per day of the violation and in a total
amount not to exceed 300 percent of the original amount improperly withheld
from escrow; and
     (C) In the case of a second knowing
violation, be prohibited from selling cigarettes to consumers within the State
of
     Note: See note under 323.800.
FEDERAL
CIGARETTE LABELING AND ADVERTISING ACT ENFORCEMENT
     323.850
Legislative findings. (1)
The Legislative Assembly finds that consumers and retailers purchasing
cigarettes are entitled to be assured through appropriate enforcement measures
that cigarettes they purchase were manufactured for consumption within the
     (2) The Legislative Assembly declares that
it is the intent of ORS 323.850 to 323.862 to align state law with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C. 1331 et seq.) and 26 U.S.C.
5754. [1999 c.1077 §1]
     Note: 323.850 to 323.865 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
323 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     323.853
Definitions for ORS 323.850 to 323.862. As used in ORS 323.850 to 323.862:
     (1) “Cigarette” means any product that
contains nicotine, is intended to be burned or heated under ordinary conditions
of use and consists of or contains:
     (a) Any roll of tobacco wrapped in paper
or in any substance not containing tobacco;
     (b) Tobacco, in any form, that is
functional in the product and that, because of its appearance, the type of
tobacco used in the filler or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette; or
     (c) Any roll of tobacco that is wrapped in
any substance containing tobacco and that, because of its appearance, the type
of tobacco used in the filler or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette described in paragraph (a)
of this subsection.
     (2) “Cigarette” includes “roll-your-own,”
which is any tobacco that, because of its appearance, type, packaging or
labeling, is suitable for use and likely to be offered to, or purchased by,
consumers as tobacco for making cigarettes. For purposes of the definition of “cigarette,”
0.09 ounces of “roll-your-own” tobacco shall constitute one individual “cigarette.”
     (3) “Cigarette distributor” means any
person or business that sells or distributes cigarettes to a tobacco retailer.
     (4) “Package” means a package, carton or
container of any kind in which cigarettes are offered for sale, sold or
otherwise distributed or intended for distribution to consumers.
     (5) “Tobacco product manufacturer” has the
meaning given that term in ORS 323.800.
     (6) “Tobacco retailer” means any person or
business that offers cigarettes for sale to members of the public. [1999 c.1077
§2]
     Note: See note under 323.850.
     323.856
Tax stamps prohibited on cigarette packages not meeting federal requirements. (1) No tax stamp may be affixed to, or made
upon, any package of cigarettes if:
     (a) The package differs in any respect
from all the requirements of the Federal Cigarette Labeling and Advertising Act
(15 U.S.C. 1331 et seq.) on October 23, 1999, for the placement of labels,
warnings or any other information upon a package of cigarettes that is to be
sold within the United States;
     (b) The package has been imported into the
     (c) The package is labeled “For Export
Only,” “U.S. Tax Exempt,” “For Use Outside U.S.” or similar wording indicating
that the manufacturer did not intend that the product be sold in the United
States; or
     (d) The package, or package containing
individually stamped packages, has been altered by adding, masking or deleting
the wording described in paragraph (c) of this subsection.
     (2) Any person who sells or holds for sale
cigarette packages to which are affixed a tax stamp in violation of this
section commits the same offense as possessing or selling cigarettes without a
tax stamp.
     (3) The Department of Justice shall notify
the Department of Revenue in writing when a determination has been made that a
cigarette distributor, on or after the date specified in the notice issued
under ORS 323.859, has sold or held for resale cigarette packages to which a
stamp has been affixed in violation of this section. Upon notification of such
violation, the Department of Revenue shall automatically suspend the license of
the cigarette distributor for a period of 90 days. Upon determination by the
Department of Justice of any subsequent violation of this section by the
distributor, the Department of Revenue shall revoke the distributorÂ’s license
consistent with the provisions of ORS 323.140.
     (4) On or after the date specified in the
notice issued under ORS 323.859, the Oregon State Police or any other law
enforcement agency may seize or, acting in coordination with the Department of
Revenue, destroy or sell back for destruction or export only to the
manufacturer or licensed exporter “only to export” cigarette packages to which
is affixed a tax stamp in violation of this section. Notwithstanding the
provisions of ORS 323.320, the Department of Revenue shall not refund or credit
to a distributor the denominated value of tax stamps when such seizure,
destruction or sale back to the manufacturer has occurred.
     (5) A violation of this section is an
unlawful practice under ORS 646.605 to 646.652. [1999 c.1077 §3; 2001 c.696 §4]
     Note: See note under 323.850.
     323.859
Notice; effect of failure to receive notice. (1) Within the 45-day period immediately following October 23, 1999,
the Department of Revenue shall issue a notice to:
     (a) All licensed
     (b) All tobacco retailers and cigarette
distributors informing the retailers and distributors of the penalties for
holding or selling cigarettes in violation of ORS 323.856.
     (2) The notice shall specify a date, not
earlier than the 60th day or later than the 90th day after the date on which
the notice is mailed, after which a penalty may be imposed or seizures,
destruction or sales may take place under ORS 323.850 to 323.862.
     (3) The notice shall be in writing and
sent by first class mail. The mailing shall be made by the Department of
Revenue.
     (4) Failure of tobacco retailers or
cigarette distributors to receive written notice is not a defense to any action
to suspend or revoke a license of a cigarette distributor or to an action
involving the seizure of cigarettes. [1999 c.1077 §4]
     Note: See note under 323.850.
     323.862
Disclosure of information.
The Department of Revenue may disclose information submitted to the department
related to cigarettes, tobacco product manufacturers and tobacco retailers to
the Attorney General, and such other parties as the Attorney General determines
necessary, to monitor and enforce compliance by tobacco product manufacturers
with ORS 323.800 to 323.806. [1999 c.1077 §5; 2005 c.22 §229]
     Note: See note under 323.850.
     323.865
Rulemaking authority. The
Department of Justice, in accordance with ORS chapter 183, may adopt rules
necessary for the implementation and administration of ORS 323.850 to 323.862. [1999
c.1077 §6]
     Note: See note under 323.850.
     323.990 [1965 c.525 §90; 2001 c.696 §1; renumbered
323.480 in 2001]
     323.992 [1965 c.525 §91; repealed by 1971 c.743 §432]
     323.995 [1985 c.816 §43; 1995 c.650 §47; repealed by
2003 c.804 §70]
_______________
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