Oregon Statutes - Chapter 323 - Cigarettes and Tobacco Products - Section 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 United States in violation of 26 U.S.C. 5754 or 19 U.S.C. 1681a, or implementing regulations of the federal laws listed in this paragraph;

(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 distributor’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.

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Last modified: August 7, 2008