Oregon-licensed distributors pay the tax by purchasing tax stamps. Payment may be made at the time of purchase, by approved payment deferral, or by electronic funds transfer (EFT) to the Oregon Department of Revenue.
For taxpayers other than licensed distributors, when the tax is not paid through the use of stamps, the tax is due on the 20th of the month following the month in which the distribution occurs.
You can complete and submit your tax return electronically using Revenue Online.
Oregon licensed distributors purchase stamps from the Department of Revenue. A machine heats the stamps, and sticks them to the packs. The machine opens the cartons, applies the stamp, then reseals the cartons.
You can place orders for Oregon cigarette tax stamps electronically using Revenue Online.
There is a federal law called the Jenkins Act that requires all interstate sales of cigarettes to be reported to the Department of Revenue of the state to which the product has been shipped. Under the Jenkins Act, internet retailers report the names and addresses of each person buying cigarettes from that retailer. We also have discovered names and addresses of internet purchasers during investigations done by Oregon's Tobacco Tax Program.
It isn't illegal, but you're responsible to ensure that Oregon taxes are paid on all cigarette purchases. Check the bottom of each pack to see if there's a small Oregon stamp. If there's no stamp, the Oregon tax wasn't paid. If there's a stamp but it doesn't say "Oregon", the tax was paid to another state and you still owe the Oregon tax.
Report unstamped cigarette purchases by filing an Oregon Cigarette Consumer's Monthly Tax Return, Form 514.
Oregon law will allow you to bring up to 199 cigarettes into the state without requiring them to be taxed by Oregon. However, Oregon will tax ALL cigarettes you bring into the state if you bring more than 199. For example, if you bring one full carton of cigarettes (200 cigarettes) and one carton with 199 cigarettes into Oregon, you would need to pay the tax on 399 cigarettes to the Department of Revenue. Additionally, you must apply for a Permit for Transportation of Unstamped Cigarettes from the DOR to possess, acquire for transportation, or transport unstamped cigarettes in Oregon.
You can complete and submit an application for a Permit for Transportation of Unstamped Cigarettes electronically using Revenue Online.
The stamp is wax. Each pack must have a stamp. Each state uses its own tax stamp design. Colors and markings on each state's stamps are different.
Most internet sites do not comply with Oregon statute (ORS 323.700-323.730) regarding tobacco sales. This law requires all remote sellers of cigarettes or other tobacco products to
- Verify the age of the purchaser;
- Be a licensed distributor;
- Report sales to the Oregon Department of Revenue; and
- Show proof of tax paid.
Each pack must have an Oregon stamp because the stamps show that the tax for each pack of cigarettes has been paid.