Bill Text: OR HB2488 | 2013 | Regular Session | Introduced
Bill Title: Relating to cigarette tax; prescribing an effective date.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2488 Detail]
Download: Oregon-2013-HB2488-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 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 1547
House Bill 2488
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Revenue)
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.
Clarifies definitions and establishes procedures for
enforcement of cigarette tax imposed upon cigarettes containing
roll-your-own tobacco.
Applies to cigarettes distributed on or after January 1, 2014.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to cigarette tax; creating new provisions; amending ORS
323.010, 323.015 and 323.160; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 323.010 is amended to read:
323.010. As used in ORS 323.005 to 323.482, unless the context
requires otherwise:
(1) 'Cigarette' means any product that contains nicotine, is
intended to be burned or heated under ordinary conditions of use
and consists of or contains:
(a) Any roll of tobacco wrapped in paper or in any substance
not containing tobacco;
(b) Tobacco, in any form, that is functional in the product and
that, because of its appearance, the type of tobacco used in the
filler or its packaging and labeling, is likely to be offered to,
or purchased by, consumers as a cigarette; { - or - }
(c) Any roll of tobacco that is wrapped in any substance
containing tobacco and that, because of its appearance, the type
of tobacco used in the filler or its packaging and labeling, is
likely to be offered to, or purchased by, consumers as a
cigarette described in paragraph (a) of this subsection
{ - . - } { + ; or
(d) Roll-your-own tobacco. + }
(2) 'Cigarette activity in this state':
(a) Means importing, storing or manufacturing cigarettes in
this state, or exporting cigarettes out of this state, in order
to sell the cigarettes either within or outside this state.
(b) Does not include importing, storing, manufacturing or
exporting of cigarettes that are to be consumed by the person
doing the importing, storing, manufacturing or exporting.
(3) 'Contraband cigarettes' means cigarettes or packages of
cigarettes:
(a) That do not comply with the requirements of ORS 323.005 to
323.482 or 323.856 or the cigarette tax laws of another state or
the federal government;
(b) That bear trademarks that are counterfeit under ORS 647.135
or other state or federal trademark laws; or
(c) That have been sold, offered for sale or possessed for sale
in this state in violation of ORS 180.440.
(4) 'Department' means the Department of Revenue.
(5) 'Dealer' includes every person, other than a manufacturer
or a person holding a distributor's license, who engages in this
state in the sale of cigarettes.
(6) 'Exporting' means the act of carrying or conveying goods
from a point of manufacture or storage in this state to a
location outside this state and may be further defined by the
department by rule.
(7) 'Importing' means the act of bringing goods to a point of
storage in this state from a location outside this state and may
be further defined by the department by rule.
(8) 'In this state' means within the exterior limits of the
State of Oregon and includes all territory within these limits
owned by or ceded to the United States of America.
(9) 'Manufacturer' means any person who makes, manufactures or
fabricates cigarettes for sale.
(10) 'Package' means the individual package, box or other
container in which retail sales or gifts of cigarettes are
normally made or intended to be made.
(11) 'Person' includes any individual, firm, copartnership,
joint venture, association, social club, fraternal organization,
corporation, estate, trust, receiver, trustee, syndicate, this
state, any county, municipality, district or other political
subdivision of the state, or any other group or combination
acting as a unit.
{ + (12) 'Roll-your-own tobacco' means any tobacco which,
because of its appearance, type, packaging or labeling, is
suitable for use and likely to be offered to, or purchased by,
consumers as tobacco for making cigarettes. + }
{ - (12) - } { + (13) + } 'Sale' includes any transfer of
title or possession for a consideration, exchange or barter, in
any manner or by any means whatsoever, but does not include the
sale of cigarettes by a manufacturer to a distributor.
{ - (13) - } { + (14) + } 'Taxpayer' means a distributor or
other person required to pay a tax under ORS 323.005 to 323.482,
and includes a distributor required to prepay a tax under ORS
323.068.
{ - (14) - } { + (15) + } 'Transporter' means any person
importing or transporting into this state, or transporting in
this state, cigarettes obtained from a source located outside
this state, or from any person not licensed as a distributor
under ORS 323.005 to 323.482. It does not include a licensed
distributor, a common carrier to whom is issued a certificate or
permit by the United States Surface Transportation Board to carry
commodities in interstate commerce, or to a carrier of federal
tax-free cigarettes in bond, or any person transporting no more
than 199 cigarettes at any one time.
{ - (15) - } { + (16) + } 'Untaxed cigarette' means any
cigarette that has not yet been distributed in such manner as to
result in a tax liability under ORS 323.005 to 323.482.
{ - (16) - } { + (17) + } 'Use or consumption' includes the
exercise of any right or power over cigarettes incident to the
ownership thereof, other than the sale of the cigarettes or the
keeping or retention thereof for the purpose of sale.
{ - (17) - } { + (18) + } 'Wholesaler' means any dealer who
engages in the sale of cigarettes to any other dealer for
purposes other than use or consumption.
SECTION 2. ORS 323.015 is amended to read:
323.015. As used in ORS 323.005 to 323.482, unless the context
requires otherwise:
(1) 'Distribution' includes:
(a) The sale in this state of untaxed cigarettes.
(b) The use or consumption in this state of untaxed cigarettes.
(c) The receipt or retention in this state of untaxed
cigarettes at a place of business where cigarettes are
customarily sold or offered for sale to consumers.
(d) The placing of cigarettes in vending machines in this
state.
(e) The use or consumption by the first person in possession in
this state of untaxed cigarettes transported to the state in
quantities of more than 199 in a single shipment.
(f) Donations of sample cigarettes or gift cartons by the
manufacturers of the cigarettes, except sample packages
containing not more than five cigarettes and labeled as 'sample,'
'not for sale' or with similar wording.
(g) The possession in this state of untaxed cigarettes that
were transported to this state in quantities of more than 199,
unless the person in possession of the untaxed cigarettes is in
possession of the untaxed cigarettes in order to transport the
cigarettes to a location outside this state.
(2) 'Distributor' includes:
(a) Any person who distributes cigarettes.
(b) Any person who sells or accepts orders for cigarettes that
are to be transported from a point outside this state to a
consumer within this state.
{ + (c) Any person who for commercial purposes makes
available for consumer use a machine capable of making
cigarettes. + }
{ - (c) - } { + (d) + } Notwithstanding the provisions of
ORS 323.010 (5), any dealer who serves as the dealer's own
distributor or who buys directly from a manufacturer for resale
in this state shall be deemed to be both a distributor and a
dealer under ORS 323.005 to 323.482.
(3) 'Distributor engaged in business in this state ' includes
any of the following:
(a) Any distributor maintaining, occupying or using,
permanently or temporarily, directly or indirectly, or through a
subsidiary or agent, by whatever name called, an office, place of
distribution, sales or sample room or place, warehouse or storage
place or any other place of business.
(b) A distributor having a representative, agent, salesperson,
canvasser or solicitor operating in this state under the
authority of the distributor or its subsidiary for the purpose of
selling, delivering, or the taking of orders for cigarettes.
SECTION 3. ORS 323.160 is amended to read:
323.160. (1) The Department of Revenue shall furnish cigarette
tax stamps for sale to distributors required under ORS 323.068 to
prepay the taxes imposed under ORS 323.005 to 323.482.
(2) Stamps shall be designed according to specifications and
denominations prescribed by the department. The department shall
prescribe by rule the method and manner in which stamps are to be
affixed to packages of cigarettes and may provide for the
cancellation of stamps. { + The department may prescribe an
alternative method for affixing stamps to packages of cigarettes
containing roll-your-own tobacco. + }
(3) An appropriate stamp shall be affixed to each package of
cigarettes prior to the distribution of the cigarettes.
SECTION 4. { + The amendments to ORS 323.010, 323.015 and
323.160 by sections 1 to 3 of this 2013 Act apply to cigarettes
distributed on or after January 1, 2014. + }
SECTION 5. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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