Bill Text: OR HB2231 | 2011 | Regular Session | Introduced

---

Bill Title: Relating to cigarettes taxes; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2231 Detail]

Download: Oregon-2011-HB2231-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 450

                         House Bill 2231

Sponsored by Representative GREENLICK (Presession filed.)

                             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 cigarette tax. Applies increase to cigarettes
distributed on or after January 1, 2012, and to existing
inventories of cigarettes not yet acquired by consumers as of
January 1, 2012.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to cigarettes taxes; creating new provisions; amending
  ORS 323.031 and 323.457; 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 323.031 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 - }
 { + 80 + } 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 2. 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 - }   { + _____/80 + } of the moneys shall
be credited to the Oregon Health Plan Fund established under ORS
414.109;
  (b)   { - 0.14/30 - }   { + ____/80 + } 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 - }   { + ____/80 + } 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 - }   { + ____/80 + } 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 - }   { + ____/80 + } 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 3.  { + (1) 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
January 1, 2012.
  (2) The tax imposed by this section is due and payable on or
before January 20, 2012. 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) By January 20, 2012, 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 January 1, 2012, and the amount of tax due. Each
report must be accompanied by a remittance payable to the
department for the amount of tax due.
  (4) As used in this section, 'dealer' has the meaning given
that term in ORS 323.010. + }
  SECTION 4.  { + Notwithstanding ORS 323.030 (3), for the
privilege of distributing cigarettes as a distributor, as defined
in ORS 323.015, 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,' in
the amount of $1 for each Oregon cigarette tax stamp bearing the
designation '20' and in the amount of 50 cents for each Oregon
cigarette tax stamp bearing the designation '10,' 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 January 1, 2012. + }
  SECTION 5.  { + (1) Every distributor as defined in ORS 323.015
must take an inventory as of 12:01 a.m. on January 1, 2012, 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 by January 20, 2012, 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 January 1, 2012; 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 January 1,
2012.
  (3) The amount of tax required to be paid with respect to the
affixed Oregon cigarette tax stamps shall be computed pursuant to
section 4 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. + }
  SECTION 6.  { + All moneys received by the Department of
Revenue from the taxes imposed by sections 3 and 4 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 payment of
refunds, the balance shall be credited to the General Fund. + }
  SECTION 7.  { + The amendments to ORS 323.031 and 323.457 by
sections 1 and 2 of this 2011 Act apply to cigarette tax
reporting periods beginning on or after January 1, 2012. + }
  SECTION 8.  { + This 2011 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
                         ----------