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.
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
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
Oregon law requires retailers selling cigarettes to post the current tax rate in their retail establishment.
You must apply for a
Permit for Transportation of Unstamped Cigarettes
before transporting untaxed cigarettes in Oregon. Apply for a Permit for Transportation of Unstamped Cigarettes electronically using
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.