Businesses


Our field agents conduct cigarette and other tobacco tax inspections at retail outlets. Upon entering a business, an agent will:

  • Present a business card as identification.
  • Ask to speak with the owner or manager.
  • Explain the purpose of the visit.
  • Ask to examine cigarettes and tobacco products. When possible, an employee of the business should be present when back rooms are inspected.
  • Ask to examine receipts and invoices for cigarettes and tobacco products.
  • Issue a Demand to Examine Books and Records in the event that receipts or invoices aren’t available. Responses can be faxed, mailed, or reviewed in person during a follow-up visit at the agent's discretion.

Recordkeeping Requirements

You must maintain invoices for all cigarette purchases. The invoices must show:
  • The seller’s name and address;
  • The date of sale; and
  • The quantity and description of cigarettes sold.
You must maintain invoices for all tobacco product purchases. The invoices must show:
  • The license number of the distributor;
  • A certified statement that all taxes have been or will be paid;
  • The seller’s name and address;
  • The purchaser’s name and address;
  • The date of sale; and
  • The quantity and description of tobacco products sold.  

Cigarette seizures

  • 
Agents will seize any of the following:
  • Cigarette packages with no tax stamp.
  • Cigarette packages with a tax stamp for Cigarette packages with state.
  • Cigarette packages with a counterfeit tax stamp.
  • Cigarette packages manufactured for U.S. export-only cigarettes ("gray market").
  • Single cigarettes.
  • Brands of cigarettes not approved for sale in Oregon (“Delisted”) Learn more about the cigarette brands that are approved for sale in Oregon
If cigarettes are seized, you may redeem them by providing invoices showing that the cigarettes were purchased from a licensed distributor who paid the tax, within 30 days from the date of seizure. “Delisted” cigarettes may not be redeemed unless you provide evidence that the cigarettes were purchased before being delisted in Oregon. "Gray market" products are not redeemable.

Tobacco product tax assessments

If you don’t maintain complete invoices, you’ll be responsible for paying the tax due as well as any administrative costs and a penalty up to 100% of the tax due. Both tax and penalty are due immediately. A civil penalty may also be imposed.
 
Paying the tax, penalty, and administrative costs doesn’t relieve you of any fines or from imprisonment for violating tax laws.

 

Manage your tax account

Make payments, check balances, view notices, and more with Revenue Online.

Contact us

Phone: (503) 947-2560 or
(503) 945-8120
Tip line: (503) 947-2106 or
1 (866) 840-2740


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