Businesses

​​​​About the cigarette tax

Oregon voters passed Measure 108, which changed the definition of a cigarette to include little cigars. Effective January 1, 2021, little cigars collectively weighing 3 pounds or less per 1,000 are considered cigarettes for taxation purposes. Cigarettes and little cigars must be sold in sealed packs of at least 20 sticks and stamped with an Oregon cigarette tax stamp.

A cigarette/little cigar includes any roll for smoking that is made wholly, or in part, of flavored or unflavored tobacco, if the roll has a wrapper made wholly, or in greater part, of tobacco and if 1,000 of these rolls collectively weigh three pounds or less (ORS 323.010(1)(d)).

Oregon's cigarette tax rate is $3.33 per stamp for a pack of 20 cigarettes. Every pack of cigarettes sold in Oregon must have an Oregon tax stamp. Only licensed distributors can purchase the tax stamps. Read more about becoming a licensed distributor and purchasing Oregon cigarette tax stamps.

Responsibi​​​lities and requirements

If you buy a cigarette pack that is not stamped then you are responsible for paying the tax, whether you are a business or have purchased the cigarettes for personal use. 

Licensed Dis​tributors

You must:
You can order tax stamps, view account balances, and more with Revenue Online

Manufacture​rs

You must file an Oregon Monthly Tax Report for Nonexempt Cigarettes for Cigarette / Little Cigar Manufacturers, Form OR-512​, for every month that you distribute unstamped cigarettes in Oregon.

If you distribute cigarettes in Oregon to someone other than an Oregon licensed distributor you must provide statement with each shipment. The statement must contain your name, the purchaser’s name, the date of delivery, the quantity of cigarettes, and brand of cigarettes. You must provide us a copy of the statement within 10 days. 

Retaile​rs

You must purchase stamped cigarettes from a licensed Oregon distributor or wholesaler. Licensed distributors must pay the tax. If you want to purchase unstamped cigarettes for resale to customers in Oregon, you must apply for a distributor's license. View a list of the currently licensed Oregon distributors or licensed Oregon wholesalers.

You must keep receipts and invoices for cigarettes for five years, or until the cigarettes are sold, whichever is longer. Receipts and invoices must be available for inspection by us. Click here for more information about the inspection process.

Oregon law requires retailers selling cigarettes to post the current tax rate​ in their retail establishment.

Consum​ers

If you purchase unstamped cigarettes, you’re responsible for paying the tax. You must file an Oregon Unlicensed Cigarette and Little Cigar Monthly Tax Reporr, Form OR-514, for every month that you purchase unstamped cigarettes.

Transport​ers

You must apply for a Permit for Transp​ortation of Unstamped Cigarettes before transporting untaxed cigarettes in Oregon. Apply for a Permit for Transportation of Unstamped Cigarettes electronically using Revenue Online.

Distribut​or or wholesaler license

You must obtain an Oregon Cigarette Distributor License before purchasing Oregon tax stamps or distributing cigarettes in Oregon. You must obtain an Oregon Cigarette Wholesaler License before offering cigarettes for sale to retailers in Oregon. Licensed Wholesalers must purchase stamped cigarettes from Oregon licensed distributors. View a list of the currently licensed Oregon distributors.

Licenses are not transferrable. You must be licensed for each location where you sell cigarettes. Learn more about the licensing process, and how to submit your application. 

Penalty an​d interest   

We charge a penalty of 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 isn’t paid within 30 days, we charge an additional 20 percent penalty.

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

Additionally, you may be subject to a civil penalty of up to $1,000 per violation of state cigarette tax laws.

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Manage your tax account

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

Go to Revenue Online

Contact us

Phone: 503-945-8120
Tip line: 503-947-2106 or 866-840-2740
Mailing address:

Cigarette Tax
Oregon Department of Revenue
PO Box 14630
Salem, OR 97309-5050

 


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