Bill Text: OR HB2533 | 2011 | Regular Session | Introduced

---

Bill Title: Relating to tax on cigarettes; 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. [HB2533 Detail]

Download: Oregon-2011-HB2533-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 1180

                         House Bill 2533

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  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.

  Increases tax on cigarettes. Distributes tax revenues from
increase. Applies to cigarette distributions occurring on or
after January 1, 2012, or first day of calendar month following
effective date of Act.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax on cigarettes; creating new provisions; amending
  ORS 323.030 and 323.455; 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 - }
 { + 150.0125 + } 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 323.455 is amended to read:
  323.455. (1) All moneys received by the Department of Revenue
from the tax imposed by ORS 323.030 (1) shall be paid over to the
State Treasurer to be held in a suspense account established
under ORS 293.445. The department may pay expenses for
administration of ORS 323.005 to 323.482 out of moneys received
from the tax imposed under ORS 323.030 (1). Amounts necessary to
pay administrative expenses are continuously appropriated to the
department from the suspense account. After the payment of
administrative expenses and refunds,   { - 89.65 - }
 { + 44.44 + } percent shall be credited to the General Fund,
 { + 49.77 shall be credited to the Oregon Health Plan Fund
established under ORS 414.109, + }   { - 3.45 - }   { + 1.93 + }
percent is appropriated to the cities of this state,
 { - 3.45 - }   { + 1.93 + } percent is appropriated to the
counties of this state and   { - 3.45 - }   { + 1.93 + } percent
is continuously appropriated to the Department of Transportation
for the purpose of financing and improving transportation
services for elderly individuals and individuals with
disabilities as provided in ORS 391.800 to 391.830.
  (2) The moneys so appropriated to cities and counties shall be
paid on a monthly basis within 35 days after the end of the month
for which a distribution is made. Each city shall receive such
share of the money appropriated to all cities as its population,
as determined under ORS 190.510 to 190.590 last preceding such
apportionment, bears to the total population of the cities of the
state, and each county shall receive such share of the money as
its population, determined under ORS 190.510 to 190.590 last
preceding such apportionment, bears to the total population of
the state.
  (3) The moneys appropriated to the Department of Transportation
under subsection (1) of this section shall be distributed and
transferred to the Elderly and Disabled Special Transportation
Fund established by ORS 391.800 at the same time as the cigarette
tax moneys are distributed to cities and counties under this
section.
  (4) Of the moneys credited to the General Fund under this
section   { - 51.92 - }   { + 51.91 + } percent shall be
dedicated to funding the maintenance and expansion of the number
of persons eligible for the medical assistance program under ORS
chapter 414, or to funding the maintenance of the benefits
available under the program, or both, and   { - 5.77 - }
 { + 5.78 + } percent shall be credited to the Tobacco Use
Reduction Account established under ORS 431.832.
  SECTION 3.  { + The amendments to ORS 323.030 and 323.455 by
sections 1 and 2 of this 2011 Act apply to cigarette
distributions occurring on or after the later of January 1, 2012,
or the first day of the calendar month following the effective
date of this 2011 Act. + }
  SECTION 4.  { + Section 5 of this 2011 Act is added to and made
a part of ORS 323.005 to 323.482. + }
  SECTION 5. { +  ORS 323.031 does not apply to + }
 { + cigarette distributions occurring on or after the later of
January 1, 2012, or the first day of the calendar month following
the effective date of this 2011 Act. + }
  SECTION 6.  { + (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 90.0125
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 7.  { + 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 $2.27 and 53/100 cents for each
Oregon cigarette tax stamp bearing the designation '25,' in the
amount of $1.82 and 25/100 cents for each Oregon cigarette tax
stamp bearing the designation '20,' in the amount of 90 and
12.5/100 cents for each Oregon cigarette tax stamp bearing the
designation '10' and in the amount of 9 and 11/100 cents for each
Oregon cigarette tax stamp bearing the designation '1' 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 8.  { + (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 7 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 9. { +  All moneys received by the Department of
Revenue from the taxes imposed by sections 6 and 7 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 323.455. + }
  SECTION 10.  { + The Department of Revenue may take
administrative actions it considers necessary to implement
sections 6 to 8 of this 2011 Act and the amendments to ORS
323.030 and 323.455 by sections 1 and 2 of this 2011 Act,
including but not limited to:
  (1) Limiting sales of 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; or

  (3) Establishing a date after which stamps sold prior to the
effective date of this 2011 Act will not be redeemed. + }
  SECTION 11.  { + 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. + }
                         ----------