About the cigarette tax
Oregon's cigarette tax rate is $1.33 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.
A cigarette is 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 a cigarette due to its contents, appearance, or packaging and labeling (ORS 323.010).
Responsibilities 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.
You can order tax stamps, view account balances, and more with Revenue Online
You must file an Oregon Tax Report for Non-exempt Cigarettes
, Form 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.
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.
Distributor 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 and 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.