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 three pounds or less per 1,000 are considered cigarettes for tax 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.
If you buy a cigarette pack that is not stamped, you are responsible for paying the tax whether you are a business or have purchased the cigarettes for personal use.
Licensed distributors
You must:
You can order tax stamps, view account balances, and more with
Revenue Online.
Manufacturers
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 a 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 of distribution.
Retailers
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.
Consumers
If you purchase unstamped cigarettes, you're responsible for paying the tax. You must file an
Oregon Unlicensed Cigarette and Little Cigar Monthly Tax Report, Form OR-514, for every month that you purchase unstamped cigarettes.
Transporters
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.
Distributor 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.
If you are a tobacco retailer seeking information regarding a tobacco retail license, please visit the tobacco retail licensing page for more information.
Select a business name and structure
Most businesses must be registered with the Secretary of State office.
Register online or call the Secretary of State Corporation Division at 503-986-2200.
Apply for a federal tax ID number
All businesses, except certain sole proprietorships, are required to have a federal tax identification number. Download the
IRS SS-4 form to get started or contact your local IRS office if you have questions.
Determine which type of license you need
There are three kinds of licenses:
- Cigarette Distributor's License: For people who bring untaxed cigarettes into Oregon for resale. This license allows you to purchase Oregon tax stamps from us.
- Cigarette Wholesaler's License: For people who buy stamped cigarettes from licensed distributors. This license allows you to resell these cigarettes to other retailers.
- Tobacco Products Distributor's License: For people who bring untaxed tobacco products into Oregon for resale.
Fill out a license application
You must list the names, addresses, and contact information of all suppliers and manufacturers from which you purchase tobacco. Your application can't be processed without this information.
Complete and submit your application electronically using
Revenue Online, or send a paper application to:
Oregon Department of Revenue
PO Box 14630
Salem OR 97309-5050
There is no fee for a distributor or wholesale license in Oregon. We usually process applications within four to six weeks. We'll mail your license to your business and it must be displayed publicly.
Place an order
You must submit orders electronically through Revenue Online. If you don't have a Revenue Online account, you can sign up here.
- Orders received by 9:30 a.m. process the same day. Orders received after 9:30 a.m. process the following business day.
- You can place one order per day for each cigarette distributor license you hold.
- If for some reason you cancel an order, you must wait until the following business day to place a new order.
Payment options
Deferred payment
Become a deferred payment distributor by submitting an Application for Deferred Payment of Cigarette Tax and a Cigarette Tax Bond form.
Online
You can now pay online from a checking or savings account. Simply select “online payment" when placing your order in Revenue Online.
By mail
Send a cashier's check to:
Oregon Department of Revenue
Special Programs Administration
PO Box 14630
Salem OR 97309-5050
Choosing to pay by mail means you can't place more stamp orders until your payment clears. This could take up to one week.
In person
Bring a cashier's check to:
Oregon Department of Revenue, Room 135
955 Center St NE
Salem OR 97301
Choosing to pay in person means you can't place more stamp orders until your payment clears. This could take up to one week.
Shipping options
Orders ship from our stamp provider, Meyercord. There are many shipping options, but the default is “Two-day PM delivery (Standard)." Default shipping orders placed on Monday by 9:30 a.m. will arrive Wednesday afternoon.
Delivery contacts
A “delivery contact" is a person you allow to receive stamp shipments on behalf of your business. At least one delivery contact is required, but you may identify as many as five. You can change your contacts each time you place an order.
Surety bond requirement
Distributors are required to post security in the form of a surety bond to ensure compliance with the cigarette tax laws. The department will contact you to determine the bond amount and provide more information on how to obtain the surety bond during the review process after an application has been submitted.
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.
The return is available on
Revenue Online.
Frequently asked questions
Tax stamps are designed to adhere to sealed packages of cigarettes and little cigars with a heat source. Oregon cigarette distributors are responsible for purchasing their own stamping equipment. Large stamping machines affix rolls of stamps and pads that are designed for hand stamping in smaller quantities.
Oregon tax stamps are purchased from the Oregon Department of Revenue. See below for stamp type, quantity, and price information:
|
Stamp Type |
Stamps Per Roll/Pad |
Individual Stamp Value |
Roll/Pad Price |
|
Large roll for 20-stick packs | 30,000 | $3.33 | $99,900 |
|
Marlboro for 25-stick packs | 7,200 | $4.1 265 | $29,970 |
|
Marlboro for 25-stick packs | 7,200 | $3.33 | $23,976 |
|
Pads for 20-stick packs | 1,000 | $3.33 | $3,330
|
If you are an Oregon-licensed distributor, you must pay the tax by
purchasing tax stamps. Stamps can only be ordered online by a licensed
distributor. You either pay at the time of purchase or by approved payment
deferral.
If you purchase cigarettes without an Oregon tax stamp and you are not an
Oregon-licensed distributor, you must file an Oregon Unlicensed
Cigarettes Monthly Tax Report, Form 514, and pay the tax by the 20th of the
month following the month in which the distribution occurs.
You can complete and submit your tax return electronically using Revenue Online.
The Jenkins Act requires all interstate sales of cigarettes to be reported to the taxation department of the state to which the product has been shipped. Under the Jenkins Act, internet retailers report the names and addresses of each person buying cigarettes from that retailer.
We've also found names and addresses of internet purchasers during investigations done by our Tobacco Tax Program.
You're responsible for ensuring that Oregon taxes are paid on all cigarette purchases. Look at the bottom of each pack. If there's no stamp or if the stamp on the bottom of the pack doesn't say “Oregon" on it, then the Oregon tax hasn't been paid.
If you are not an Oregon-licensed distributor, you must file an Oregon Unlicensed Cigarettes Monthly Tax Report, Form 514 to report all purchases of untaxed cigarettes.
If you purchase unstamped cigarettes, you are responsible for paying the tax. Consumers can bring up to 199 untaxed cigarettes into Oregon for personal use. However, a consumer who brings in more than 199 cigarettes must pay the Oregon tax. For example, if you bring one full carton (200 cigarettes) and one carton with 199 cigarettes into Oregon, you would need to pay the tax on 399 cigarettes.
Additionally, you must apply with us for a Permit for Transportation of Unstamped Cigarettes to possess or transport unstamped cigarettes in Oregon.
You can complete and submit your permit application electronically using Revenue Online.
A cigarette tax stamp is a wax stamp that shows that
the state tax has been paid for a specific pack of cigarettes. Each state uses
its own tax stamp design.
Oregon-licensed distributors purchase stamps from us. A machine opens the
cigarette cartons, heats the stamps, sticks a stamp to each cigarette pack,
then reseals the cartons.
A floor tax is a one-time excise tax on the inventory of all cigarette products in stock. If you sell cigarettes, you must file a return on or before January 20, 2021 to report your inventory and pay the additional tax to bring all product up to the new tax rate of $3.33 per pack of 20 and $4.1625 per pack of 25.
The return is available on Revenue Online.