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Smokeless tobacco products weight-based tax changes

With the passage of House Bill 2672 the
tax rate changes for smokeless tobacco products will be effective January 1, 2010 and apply to all smokeless tobacco products distributed on or after this date.


Moist Snuff Weight-Based Tax FAQ

How does Oregon tax tobacco products?

Oregon Revised Statutes (ORS) chapter 323 discusses how tobacco products are taxed in Oregon and related administrative requirements. The general categories below have a different treatment.
  • Cigars – are taxed on 0.65 percent of the purchase price paid on untaxed cigars except that the maximum tax on cigars that cost $0.77 or more “each” is limited to $0.50 per cigar.
  • NEW – Moist Snuff – the tax is $1.78 per ounce except that the minimum tax paid per retail unit is $2.14 per unit. This begins on January 1, 2010.
  • All Other Tobacco Products - are taxed on 0.65 percent of the purchase price paid on untaxed tobacco products. 


When is the new tax calculation for moist snuff effective?
January 1, 2010.
 

What is “moist snuff”?
Moist snuff is any finely cut, ground, milled or powdered tobacco product that is not intended to be smoked or placed in the nasal cavity. Moist snuff also includes any product containing tobacco which is not intended to be burned when consumed. Examples include items such as chewing tobacco, lozenges, strips, and sticks. It does not include things like cigarettes, roll-your-own tobacco, pipe tobacco or cigars.


I am an Oregon-licensed tobacco distributor. How do I pay the tax on moist snuff?
Your quarterly tobacco tax returns will be sent to you as they have in prior years. The tax returns and schedules were significantly updated in 2010. Check the appropriate year schedules for specific changes.


I purchased moist snuff over the internet for personal use. How do I pay the tax on the moist snuff I purchased?
You will need to complete and submit Form 531, Oregon Quarterly Return for Tobacco Products with supporting schedules with payment to the Department of Revenue for each calendar quarter in which you purchase moist snuff or other tobacco products.



When is my tax return due?
Tobacco tax returns are due on the last day of the month following the calendar quarter for which a tax return is required. For example:
 

January 1 – March 31 Due by April 30
April 1 – June 30
Due by July 31
July 1 – September 30 Due by October 31
October 1 – December 31 Due by January 31