Oregon Statutes - Chapter 323 - Cigarettes and Tobacco Products - Section 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]

Section:  Previous  323.440  323.455  323.457  323.460  323.480  323.482  323.500  323.505  323.510  323.515  323.520  323.525  323.530  323.535  323.538  Next

Last modified: August 7, 2008