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Cigarette tax overview
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You can now view and manage your account information electronically using Revenue Online. You can make payments; view payment details, account balances, reports and/or notices; and submit returns through Revenue Online. This service offers convenient access that is available any time of day.
> Learn about Revenue Online services for cigarette and tobacco taxpayers.
> Read Revenue Online frequently asked questions.

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Introduction
State laws define “cigarette.”
"Cigarette" means any roll made wholly of tobacco and intended for smoking that has a wrapper made of paper or other substance not containing tobacco. A product is also classified as a "cigarette" if its wrapper contains tobacco and the product is likely to be mistaken for cigarettes due to its contents, appearance, or packaging and labeling (ORS 323.010).

The Oregon cigarette tax rates are discussed in ORS 323.030. The current rates are outlined below:

Every pack of cigarettes sold in Oregon must have an Oregon tax stamp. Only Oregon-licensed distributors can purchase the tax stamps from the Oregon Department of Revenue (DOR). The current tax rate is $1.31 per stamp for a pack of 20 cigarettes. Read more about purchasing Oregon cigarette tax stamps.


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Cigarette taxpayers can now manage tax accounts and more electronically with Revenue Online - click here to get started

Responsibilities and requirements
Any individual or business that obtains unstamped cigarette product for distribution, sale, or use in Oregon is responsible for paying the tax. This includes distributors, wholesalers, manufacturers, and non-licensed businesses and consumers.

NEW: Complete and submit tax returns electronically using Revenue Online.


Distributors

Licensed distributors must:

  • Purchase all tax stamps directly from the DOR.
  • Affix an appropriate tax stamp to each package of cigarettes prior to distributing in Oregon.
  • File a quarterly Reconciliation Report (form 511 O or I) with supporting schedules; even if there is no activity during the reporting period.

You can apply to purchase cigarette tax stamps using the deferred payment option. Get more information about ordering cigarette tax stamps and the deferred payment option.

NEW: Many services are now available electronically with Revenue Online. You can order tax stamps, view account balances, and more. Learn more about the benefits of Revenue Online.


Manufacturers
As a cigarette manufacturer, you must file an Oregon Tax Report for Non-exempt Cigarettes (form 512) for every month that you distribute unstamped cigarettes in Oregon.

Every manufacturer distributing cigarettes in Oregon to someone other than an Oregon licensed distributor is required to deliver a statement with each shipment. The statement must contain 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 name of cigarettes. The manufacturer must provide the DOR a copy within 10 days.
 
Consumers
If you purchase unstamped cigarettes, you are responsible for paying the tax. You must file an Oregon Cigarette Consumer's Monthly Tax Return (Form 514) to report all purchases of unstamped cigarettes. Returns must be filed by the 20th day of the month following receipt of unstamped cigarettes. You cannot resell unstamped cigarettes, even if you have filed form 514 and paid the tax.
 

Retailers
As a retailer, you must purchase stamped cigarettes from licensed Oregon distributors/wholesalers. Licensed distributors must pay the tax. If you wish to purchase unstamped cigarettes for resale to customers in Oregon, you must apply for a distributor's license.

Click here for a list of the currently licensed Oregon distributors/wholesalers.



Transporters
Transporters must apply for a Permit for Transportation of Unstamped Cigarettes to possess, acquire for transportation, or transport untaxed cigarettes in Oregon. Each transporter must carry the permit, and the invoices or bills of lading covering the shipment in the vehicle during transport.


NEW: You can now apply for a Permit for Transportation of Unstamped Cigarettes electronically using Revenue Online.

 

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Distributor license

You must obtain an Oregon Cigarette Distributor License before purchasing Oregon tax stamps and distributing cigarettes in Oregon. The licensing process is:

  1. Submit a license application to the DOR. You must make billing arrangements with your courier service and notify us as soon as possible to confirm your courier, account number, and shipping address.
  2. We will review your application and may request additional information before issuing you a license.
  3. After we approve your application, we will issue you a license. You must display the license where it can be easily seen at the business location designated on the license.
  4. You will receive a Cigarette Tax Signature Form with the license. This form must be completed and returned to the DOR to identify individuals who are authorized to purchase/receive cigarette tax stamps on your behalf.

Wholesaler license
You must obtain an Oregon Cigarette Wholesaler License before offering cigarettes for sale to retailers in Oregon. The licensing process is:
  1. Submit a license application to the DOR. 
  2. We will review your applications and may request additional information before issuing you a license.
  3. After we approve your application, we will issue you a license. You must display the license where it can be easily seen at the business location designated on the license.
  4. As a licensed wholesaler, you must purchase cigarettes with affixed Oregon cigarette tax stamps from licensed distributors. Click here for a list of currently licensed Oregon cigarette distributors.

Distributors/Wholesalers licenses are not transferrable. Distributors/Wholesalers must be licensed for each location where they offer cigarettes for sale.



NEW: Complete and submit applications for Distributor/Wholesaler License electronically using Revenue Online.


 
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Records

Every distributor, retailer, and any other person dealing in, transporting, or storing cigarettes in Oregon must keep all pertinent records and returns for five years. Records must be available for inspection by the department. Learn more about the inspection process.
 
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Penalty and interest
A penalty will be charged equal to 5 percent of the amount due for any failure to file a report or return, or failure to pay the tax by the due date. If the amount due is not paid within 30 days, an additional penalty of 20 percent will be charged.

Interest will be added to any unpaid amount, figured from the time the tax becomes due. Interest will be at the rate established under Oregon law.

Additionally, violations of the cigarette tax law may be subject to a civil penalty of up to $1,000 per violation.


 


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Contact the cigarette tax program
Phone: ​(503) 947-2279 or (503) 945-8120
Tip line: ​(503) 947-2106 (Salem)
(866) 840-2740 (toll-free from Oregon prefix)
Mailing address: ​Cigarette Tax
Oregon Department of Revenue
PO Box 14630
Salem, OR 97309-5050