Bill Text: OR HB2870 | 2013 | Regular Session | Engrossed

---

Bill Title: Relating to local tobacco taxes; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2870 Detail]

Download: Oregon-2013-HB2870-Engrossed.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 1374

                           A-Engrossed

                         House Bill 2870
                  Ordered by the House April 2
            Including House Amendments dated April 2

Sponsored by 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.

  Removes prohibition against imposition of taxes by county on
cigarettes and tobacco products.  { + Provides that rate of tax
imposed by county may not exceed rate of tax imposed by
state. + } Requires at least   { - 20 - }   { + 40 + } percent of
any tax imposed by county on cigarettes or tobacco products to be
used for  { + tobacco use prevention and cessation + } public
health programs or services { +  and for mental health and
addiction services or programs + }.
  Applies to cigarettes and tobacco products distributed on or
after effective date of Act.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to local tobacco taxes; creating new provisions;
  amending ORS 323.030 and 323.640; and prescribing an effective
  date.
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 mills for the
distribution of each cigarette in this state.
  (2)  { + Except as provided in subsection (3) of this
section, + } 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) A county may, by ordinance, impose a tax upon the
sale or use of cigarettes at a rate not to exceed the rate
imposed by the state on the sale or use of the same
cigarette. + }
    { - (3) - }  { +  (4) + }  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 323.640 is amended to read:
  323.640. (1)  { + Except as provided in subsection (2) of this
section, + } the taxes imposed by ORS 323.505 are in lieu of all

other state  { - , county - }  or municipal taxes on the sale or
use of tobacco products.
   { +  (2) A county may, by ordinance, impose a tax upon the
sale or use of tobacco products at a rate not to exceed the rate
imposed by the state on the sale or use of the same tobacco
product. + }
    { - (2) - }   { + (3) + } Any tobacco product with respect to
which a tax has once been imposed under ORS 323.505 shall not be
subject upon a subsequent distribution to the taxes imposed by
ORS 323.505.
  SECTION 3.  { + Section 4 of this 2013 Act is added to and made
a part of ORS 323.005 to 323.482. + }
  SECTION 4.  { + At least 40 percent of the revenue collected
from taxes imposed by a county on the sale or use of cigarettes
must be expended on:
  (1) Public health programs and services, for tobacco use
prevention and cessation; and
  (2) Mental health and addiction services or programs. + }
  SECTION 5.  { + Section 6 of this 2013 Act is added to and made
a part of ORS 323.500 to 323.645. + }
  SECTION 6.  { + At least 40 percent of the revenue collected
from taxes imposed by a county on the sale or use of tobacco
products must be expended on:
  (1) Public health programs and services, for tobacco use
prevention and cessation; and
  (2) Mental health and addiction services or programs. + }
  SECTION 7.  { + Section 8 of this 2013 Act is added to and made
a part of ORS chapter 305. + }
  SECTION 8.  { + If a county imposes a tax on the sale or use of
cigarettes or tobacco products, the Department of Revenue may
contract with the county to provide collection, enforcement,
administration and distribution services for the tax in the
manner provided in ORS 305.620. + }
  SECTION 9.  { + Sections 4, 6 and 8 of this 2013 Act and the
amendments to ORS 323.030 and 323.640 by sections 1 and 2 of this
2013 Act apply to cigarettes and tobacco products distributed on
or after the effective date of this 2013 Act. + }
  SECTION 10.  { + 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. + }
                         ----------