Statewide tobacco retail license
ORS 431A.194, passed during the 2021 legislative session in Senate Bill (SB) 587 requires Oregon retailers selling cigarettes, tobacco, and/or inhalant delivery system products to obtain a license to sell these products.
Effective June 5, 2026 the sale of oral nicotine products (nicotine pouches, lozenges, strips, etc.) and other non-food products containing natural or synthetic nicotine will require a tobacco retail license.
Who is required to obtain the license?
Oregon retailers selling these types of products at retail are required to obtain the license:
- Cigarette products including little cigars
- Tobacco products including but not limited to, cigars, smokeless tobacco (snuff, chewing tobacco, SNUS, dissolvable products containing tobacco, etc.), blunt wraps, pipe tobacco, shisha, roll-your-own, oral nicotine products, and any other kinds and forms of tobacco that can be chewed or smoked.
- Inhalant delivery systems as defined by ORS 431A.175
- Cigarette distributors, tobacco distributors, and cigarette wholesalers are not required to obtain a retail tobacco license, unless they have a retail store in Oregon that sells to consumers.
- All Oregon Tobacco Retail License holders are responsible for ensuring their premises follow all federal, state and local laws and regulations governing the retail sale of tobacco products and inhalant delivery systems, including not selling these products to people under 21 years of age.
About the inspection process
Our field agents conduct cigarette and other tobacco tax inspections at retail outlets. Upon entering a business, an agent will:
- Present a business card as identification.
- Ask to speak with the owner or manager.
- Explain the purpose of the visit.
- Ask to examine cigarettes and tobacco products. When possible, an employee of the business should be present when back rooms are inspected.
- Ask to examine receipts and invoices for cigarettes and tobacco products.
- Issue a Demand to Examine Books and Records, if receipts or invoices aren’t available. Responses can be faxed, mailed, or reviewed in person during a follow-up visit at the agent's discretion.
- Verify the business is licensed, and the license is prominently displayed.
- Each tobacco retailer will have two inspections per year from the Oregon Health Authority. One inspection will make sure retailers are not selling to people under 21. The other will check for compliance with all tobacco retail sales laws.
Tobacco product tax assessments
If you don't maintain complete invoices, you'll be responsible for paying the tax due as well as any administrative costs and a penalty up to 100 percent of the tax due. Both tax and penalty are due immediately. A civil penalty may also be imposed.
Paying the tax, penalty, and administrative costs doesn't relieve you of any fines or from imprisonment for violating tax laws.
Frequently asked questions