With the approval of Measure 108 by Oregon voters this week, the Oregon Department of Revenue is moving ahead with the implementation of increases in cigarette and tobacco taxes along with a new tax on inhalant delivery products.

Cigarette Tax

The cigarette tax in Oregon will increase by $2 per pack of 20 and $2.50 per pack of 25.

As a result of the passage of the measure, the public will see the following changes beginning January 1:

  • The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.
  • Little cigars, collectively weighing less than 3 pounds per 1,000, will be taxed as cigarettes, will require an Oregon cigarette tax stamp, and must be sold in sealed packages of at least 20.
  • Inhalant delivery systems, such as vaping and e-cigarette products, will be taxed at a rate of 65% of the wholesale purchase price.
  • The cap on the tax on cigars increases from 50 cents to $1.

Revenue produced by the tax changes will be used by the Oregon Health Authority to fund healthcare coverage for low-income families, including mental health services, and public health programs, including programs addressing tobacco - and nicotine - related disease.

The Oregon Revenue Department will hold a public hearing November 24 on a series of administrative rules implementing the changes. Information about the hearing is available on the agency’s website.

Tobacco distributors and retailers, inhalant delivery product and e-cigarette dealers, and the public can also find answers to a list of frequently asked questions on the website.

To stay updated on Oregon cigarette and tobacco tax law changes, interested parties can subscribe to email updates. Those with questions can call 503-945-8120 or email spa.help@oregon.gov.

To get tax forms, check the status of your refund, or make tax payments, visit www.oregon.gov/dor or email questions.dor@oregon.gov. You also can call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing- or speech-impaired), we accept all relay calls.

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(1) comment

vgmkyle

This is quite honestly one of the most pointless and burdening tax increases I've seen in a while. $2 on a $7 pack of cigarettes? Expect to see more cigarette butts on the ground and more angry people. Way to tax the poor or depressed. Let's focus on their pleasantries rather than of the billionaires that destroy this state with stupid economic ideas that never make money or go anywhere for years.

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