Bill Text: OR HB2110 | 2011 | Regular Session | Introduced
Bill Title: Relating to taxation of tobacco; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.
Spectrum: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2110 Detail]
Download: Oregon-2011-HB2110-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 681
House Bill 2110
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber
for Oregon Health Authority)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Increases tax on cigarettes and other tobacco products.
Distributes tax revenues from increases.
Applies to distributions occurring on or after January 1, 2012.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation of tobacco; creating new provisions;
amending ORS 323.030, 323.031, 323.457 and 323.505; prescribing
an effective date; and providing for revenue raising that
requires approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 323.030 is amended to read:
323.030. (1) Every distributor shall pay a tax upon
distributions of cigarettes at the rate of { - 29 - }
{ + 31.5 + } mills for the distribution of each cigarette in
this state.
(2) The taxes imposed by ORS 323.005 to 323.482 are in lieu of
all other state, county or municipal taxes on the sale or use of
cigarettes.
(3) Any cigarette with respect to which a tax has been prepaid
under ORS 323.068 or has otherwise once been imposed under ORS
323.005 to 323.482 is not subject upon a subsequent distribution
to the taxes imposed by ORS 323.005 to 323.482.
SECTION 2. ORS 323.031 is amended to read:
323.031. (1) Notwithstanding ORS 323.030 (2) and in addition to
and not in lieu of any other tax, every distributor shall pay a
tax upon distributions of cigarettes at the rate of { - 30 - }
{ + 77.5 + } mills for the distribution of each cigarette in
this state.
(2) Any cigarette for which a tax has once been imposed under
ORS 323.005 to 323.482 may not be subject upon a subsequent
distribution to the taxes imposed by ORS 323.005 to 323.482.
SECTION 3. ORS 323.457 is amended to read:
323.457. (1) Moneys received under ORS 323.031 shall be paid
over to the State Treasurer to be held in a suspense account
established under ORS 293.445. After the payment of refunds:
(a) { - 29.37/30 - } { + 66.76/77.5 + } of the moneys shall
be credited to the Oregon Health Plan Fund established under ORS
414.109;
(b) { - 0.14/30 - } { + 0.16/77.5 + } of the moneys are
continuously appropriated to the Oregon Department of
Administrative Services for distribution to the cities of this
state;
(c) { - 0.14/30 - } { + 0.16/77.5 + } of the moneys are
continuously appropriated to the Oregon Department of
Administrative Services for distribution to the counties of this
state;
(d) { - 0.14/30 - } { + 0.16/77.5 + } of the moneys are
continuously appropriated to the Department of Transportation to
be distributed and transferred to the Elderly and Disabled
Special Transportation Fund established under ORS 391.800; and
(e) { - 0.21/30 - } { + 10.26/77.5 + } of the moneys shall
be credited to the Tobacco Use Reduction Account established
under ORS 431.832.
(2)(a) Moneys distributed to cities and counties under this
section shall be distributed to each city or county using the
proportions used for distributions made under ORS 323.455.
(b) Moneys shall be distributed to cities, counties and the
Elderly and Disabled Special Transportation Fund at the same time
moneys are distributed to cities, counties and the Elderly and
Disabled Special Transportation Fund under ORS 323.455.
SECTION 4. { + The amendments to ORS 323.030, 323.031 and
323.457 by sections 1 to 3 of this 2011 Act apply to
distributions occurring on or after January 1, 2012. + }
SECTION 5. ORS 323.505 is amended to read:
323.505. (1) A tax is hereby imposed upon the distribution of
all tobacco products in this state. The tax imposed by this
section is intended to be a direct tax on the consumer, for which
payment upon distribution is required to achieve convenience and
facility in the collection and administration of the tax. The tax
shall be imposed on a distributor at the time the distributor
distributes tobacco products.
(2) The tax imposed under this section shall be imposed at the
rate of:
(a) { - Sixty-five - } { + One hundred twenty and
one-quarter + } percent of the wholesale sales price of cigars,
but not to exceed 50 cents per cigar;
(b) { - One dollar and seventy-eight - } { + Three dollars
and twenty-nine + } cents per ounce based on the net weight
determined by the manufacturer, in the case of moist snuff,
except that the minimum tax under this paragraph is
{ - $2.14 - } { + $3.96 + } per retail container; or
(c) { - Sixty-five - } { + One hundred twenty and
one-quarter + } percent of the wholesale sales price of all
tobacco products that are not cigars or moist snuff.
(3) For reporting periods beginning on or after July 1, 2019,
the rates of tax applicable to moist snuff under subsection
(2)(b) of this section shall be adjusted for each biennium
according to the cost-of-living adjustment for the calendar year.
The Department of Revenue shall recompute the rates for each
biennium by adding to the rates in subsection (2)(b) of this
section the product obtained by multiplying the rates in
subsection (2)(b) of this section by a factor that is equal to
0.25 multiplied by the percentage (if any) by which the monthly
averaged U.S. City Average Consumer Price Index for the 12
consecutive months ending August 31 of the prior calendar year
exceeds the monthly averaged U.S. City Average Consumer Price
Index for the 12 consecutive months ending August 31, 2017.
(4) If the tax imposed under this section does not equal an
amount calculable to a whole cent, the tax shall be equal to the
next higher whole cent. However, the amount remitted to the
Department of Revenue by the taxpayer for each quarter shall be
equal only to 98.5 percent of the total taxes due and payable by
the taxpayer for the quarter.
(5) No tobacco product shall be subject to the tax if the base
product or other intermediate form thereof has previously been
taxed under this section.
SECTION 6. { + The amendments to ORS 323.505 by section 5 of
this 2011 Act apply to distributions occurring on or after
January 1, 2012. + }
SECTION 7. { + (1) Notwithstanding ORS 323.030 (3), and in
addition to and not in lieu of any other tax, for the privilege
of holding or storing cigarettes for sale, use or consumption, a
floor tax is imposed upon every dealer at the rate of 50 mills
for each cigarette in the possession of or under the control of
the dealer in this state at 12:01 a.m. on the later of January 1,
2012, or the first day of the calendar month following the
effective date of this 2011 Act.
(2) The tax imposed by this section is due and payable on or
before 20 days after the later of January 1, 2012, or the first
day of the calendar month following the effective date of this
2011 Act. Any amount of tax that is not paid within the time
required shall bear interest at the rate established under ORS
305.220 per month, or fraction of a month, from the date on which
the tax is due to be paid, until paid.
(3) On or before 20 days after the later of January 1, 2012, or
the first day of the calendar month following the effective date
of this 2011 Act, every dealer must file a report with the
Department of Revenue in such form as the department may
prescribe. The report must state the number of cigarettes in the
possession of or under the control of the dealer in this state at
12:01 a.m. on the later of January 1, 2012, or the first day of
the calendar month following the effective date of this 2011 Act
and the amount of tax due. Each report must be accompanied by a
remittance payable to the department for the amount of tax
due. + }
SECTION 8. { + Notwithstanding ORS 323.030 (3), and in
addition to and not in lieu of any other tax, for the privilege
of distributing cigarettes as a distributor and for holding or
storing cigarettes for sale, use or consumption, a floor tax and
cigarette adjustment indicia tax is imposed upon every
distributor in the amount of $1.25 for each Oregon cigarette tax
stamp bearing the designation '25' and in the amount of $1 for
each Oregon cigarette tax stamp bearing the designation '20' that
is affixed to any package of cigarettes in the possession of or
under the control of the distributor at 12:01 a.m. on the later
of January 1, 2012, or the first day of the calendar month
following the effective date of this 2011 Act. + }
SECTION 9. { + (1) Every distributor must take an inventory as
of 12:01 a.m. on the later of January 1, 2012, or the first day
of the calendar month following the effective date of this 2011
Act of all packages of cigarettes to which are affixed Oregon
cigarette tax stamps and of all unaffixed Oregon cigarette tax
stamps in the possession of or under the control of the
distributor.
(2) Every distributor must file a report with the Department of
Revenue on or before 20 days after the later of January 1, 2012,
or the first day of the calendar month following the effective
date of this 2011 Act in such form as the department may
prescribe, showing:
(a) The number of Oregon cigarette tax stamps, with the
designations of the stamps, that were affixed to packages of
cigarettes in the possession of or under the control of the
distributor at 12:01 a.m. on the later of January 1, 2012, or the
first day of the calendar month following the effective date of
this 2011 Act; and
(b) The number of unaffixed Oregon cigarette tax stamps, with
the designations of the stamps, that were in the possession of or
under the control of the distributor at 12:01 a.m. on the later
of January 1, 2012, or the first day of the calendar month
following the effective date of this 2011 Act.
(3) The amount of tax required to be paid with respect to the
affixed Oregon cigarette tax stamps shall be computed pursuant to
section 8 of this 2011 Act and remitted with the distributor's
report. Any amount of tax not paid within the time specified for
the filing of the report shall bear interest at the rate
established under ORS 305.220 per month, or fraction of a month,
from the due date of the report until paid.
(4) Notwithstanding ORS 323.320, the department may establish a
date after which the value of stamps sold prior to the effective
date of this 2011 Act will not be refunded or credited to a
distributor. + }
SECTION 10. { + All moneys received by the Department of
Revenue from the taxes imposed by sections 7 and 8 of this 2011
Act shall be paid over to the State Treasurer to be held in a
suspense account established under ORS 293.445. After the payment
of refunds, the net amount of revenues remaining shall be
distributed as prescribed in ORS 323.457. + }
SECTION 11. { + The Department of Revenue may take
administrative actions it considers necessary to implement
sections 7 to 9 of this 2011 Act and the amendments to ORS
323.030, 323.031 and 323.457 by sections 1 to 3 of this 2011 Act,
including but not limited to:
(1) Limiting sales of Oregon cigarette tax stamps prior to the
effective date of this 2011 Act;
(2) Selling stamps at the increased rate prior to the effective
date of this 2011 Act; and
(3) Establishing a date after which stamps sold prior to the
effective date of this 2011 Act will not be refunded or credited
to a distributor. + }
SECTION 12. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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