ORS 323.500
Definitions for ORS 323.500 to 323.645


As used in ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), unless the context otherwise requires:

(1)

“Business” means any trade, occupation, activity or enterprise engaged in for the purpose of selling or distributing tobacco products in this state.

(2)

“Cigar” means a roll for smoking that is of any size or shape and that is made wholly or in part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco and if 1,000 of these rolls collectively weigh more than three pounds. “Cigar” does not include a cigarette, as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(3)

“Consumer” means any person who purchases tobacco products in this state for the person’s use or consumption or for any purpose other than for reselling the tobacco products to another person.

(4)

“Contraband tobacco products” means tobacco products or packages containing tobacco products:

(a)

That do not comply with the requirements of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title);

(b)

That do not comply with the requirements of the tobacco products tax laws of the federal government or of other states;

(c)

That bear trademarks that are counterfeit under ORS 647.135 (Trademark counterfeiting) or other state or federal trademark laws; or

(d)

That have been sold, offered for sale or possessed for sale in this state in violation of ORS 180.486 (Prohibited conduct).

(5)

“Department” means the Department of Revenue.

(6)

“Distribute” means:

(a)

Bringing, or causing to be brought, into this state from without this state tobacco products for sale, storage, use or consumption;

(b)

Making, manufacturing or fabricating tobacco products in this state for sale, storage, use or consumption in this state;

(c)

Shipping or transporting tobacco products to retail dealers in this state, to be sold, stored, used or consumed by those retail dealers;

(d)

Storing untaxed tobacco products in this state that are intended to be for sale, use or consumption in this state;

(e)

Selling untaxed tobacco products in this state; or

(f)

As a consumer, being in possession of untaxed tobacco products in this state.

(7)

“Distributor” means:

(a)

Any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale;

(b)

Any person who makes, manufactures or fabricates tobacco products in this state for sale in this state;

(c)

Any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retail dealers in this state, to be sold by those retail dealers;

(d)

Any person, including a retail dealer, who sells untaxed tobacco products in this state; or

(e)

A consumer in possession of untaxed tobacco products in this state.

(8)

Intentionally left blank —Ed.

(a)

“Inhalant delivery system” means:

(A)

A device that can be used to deliver nicotine in the form of a vapor or aerosol to a person inhaling from the device; or

(B)

A component of a device described in this paragraph or a substance in any form sold for the purpose of being vaporized or aerosolized by a device described in this paragraph, whether the component or substance is sold separately or is not sold separately.

(b)

“Inhalant delivery system” does not include:

(A)

Any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for any other therapeutic purpose, if the product is marketed and sold solely for the approved purpose;

(B)

If sold separately, battery chargers, straps or lanyards; or

(C)

Marijuana items as defined in ORS 475C.009 (Definitions for ORS 475C.005 to 475C.525).

(9)

“Manufacturer” means a person who manufactures tobacco products for sale.

(10)

“Moist snuff” means:

(a)

Any finely cut, ground or powdered tobacco that is not intended to be smoked or placed in a nasal cavity; or

(b)

Any other product containing tobacco that is intended or expected to be consumed without being combusted.

(11)

“Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train or vending machine.

(12)

“Retail dealer” means any person who is engaged in the business of selling or otherwise dispensing tobacco products to consumers. The term also includes the operators of or recipients of revenue from all places such as smoke shops, cigar stores and vending machines, where tobacco products are made or stored for ultimate sale to consumers.

(13)

“Sale” means any transfer, exchange or barter, in any manner or by any means, for a consideration, and includes and means all sales made by any person. It includes a gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title), or for any other purpose.

(14)

“Taxpayer” includes a distributor or other person required to pay a tax imposed under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title).

(15)

“Tobacco products” means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed and other smoking tobacco, snuff, snuff flour, moist snuff, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, and inhalant delivery systems, but does not include cigarettes as defined in ORS 323.010 (Definitions for ORS 323.005 to 323.482).

(16)

“Untaxed tobacco products” means tobacco products for which the tax required under ORS 323.500 (Definitions for ORS 323.500 to 323.645) to 323.645 (Short title) has not been paid.

(17)

“Wholesale sales price” means the price paid for untaxed tobacco products to or on behalf of a seller by a purchaser of the untaxed tobacco products. [1985 c.816 §15; 2001 c.982 §2; 2003 c.804 §31; 2009 c.717 §1; 2019 c.525 §11]

Source: Section 323.500 — Definitions for ORS 323.500 to 323.645, https://www.­oregonlegislature.­gov/bills_laws/ors/ors323.­html.

Notes of Decisions

Taxpayer, who did not own store that ultimately sold tobacco products, but who paid for tobacco products on behalf of store is liable for taxes because taxpayer caused tobacco products to enter this state as “distributor.” Downer v. Dept. of Revenue, 20 OTR 273 (2011)

323.005
Short title
323.010
Definitions for ORS 323.005 to 323.482
323.015
“Distribution,” “distributor” and “distributor engaged in business in this state” defined
323.030
Tax imposed
323.031
Additional tax imposed
323.035
Distributions by manufacturers to licensed distributors exempted
323.040
Sales to common carriers in interstate or foreign passenger service exempted
323.050
Storage in bonded warehouses exempted
323.055
Sales to federal installations and veterans’ institutions exempted
323.060
Consumer exemption
323.065
Claim for exemption
323.068
Prepayment of tax
323.075
Distributor to collect tax on certain sales
323.080
Manufacturers’ agreements for prepayment
323.085
Presumptions regarding distribution and prepayment of tax
323.105
Distributor’s license
323.106
Certification of intent to comply with reporting, recordkeeping and directory participation requirements
323.107
Wholesaler’s license
323.110
Security required for licensing
323.115
Provision for withdrawal of surety
323.120
Form of security
323.125
Liquidation of security to pay delinquency
323.130
Issuance and display of license
323.140
Cancellation, revocation or suspension of license
323.160
Tax stamps
323.165
Sale of stamps
323.170
Payment for stamps
323.175
Application for credit purchases of stamps
323.180
Authorization of agent
323.185
Date when payment for credit purchases due
323.190
Suspension of credit
323.195
Penalty for nonpayment of credit purchase
323.205
Manufacturers’ reports
323.211
Posting of certain information on vending machines required
323.215
Records of vending machine operators
323.220
Maintenance and preservation of records
323.225
Transporters’ permits and records
323.230
Examination of records by department
323.235
Subpoenas
323.240
Search warrants
323.245
Forfeiture of cigarettes and other objects
323.248
Seizure and forfeiture of contraband cigarettes
323.250
Exchanges of information with other governmental units
323.255
Rewards for information
323.305
Determination of amounts unpaid
323.318
Refund when increase in cigarette tax is not continued
323.320
Refunds for unused stamps and for unsalable or destroyed cigarettes
323.325
Limitation period on claim for refund
323.330
Interest on certain refunds
323.335
Date when payment or prepayment of tax is due
323.340
Reporting requirements for distributors
323.343
Report by persons with cigarette activity
323.355
Report of sales on common carriers in interstate or foreign passenger service
323.360
Report by consumers
323.365
Extension of time for reports and payment of tax
323.381
Failure to pay tax or timely file report
323.385
Jeopardy determinations
323.390
Collection of unsecured, unpaid tax after deficiency or jeopardy determination
323.391
Withholding warrant procedures
323.401
Refund agreement with governing body of Indian reservation
323.403
Application of other statutes
323.404
Disclosure and sharing of information between Department of Revenue and Oregon Health Authority
323.406
Disclosure of license information
323.416
Appeals to Tax Court
323.420
Venue
323.435
Actions by Attorney General
323.440
Department to enforce ORS 323.005 to 323.482
323.455
Distribution of certain cigarette tax revenues
323.457
Distribution of additional tax proceeds
323.459
Disposition of further tax proceeds
323.480
Civil and criminal penalties for violations of ORS 323.005 to 323.482
323.482
Offense of unlawful distribution of cigarettes
323.500
Definitions for ORS 323.500 to 323.645
323.505
Tax imposed on distribution
323.510
Dates for payment of tax
323.515
Exemption for tobacco products not subject to taxation by state
323.520
Application for distributor license
323.525
Security
323.530
Issuance of license
323.535
Cancellation, suspension or revocation of license
323.538
Wholesale sales invoices
323.540
Records
323.555
Warehouse records
323.560
Credit of tax for tobacco products shipped out of state or returned to manufacturer
323.565
Exemption for sales to common carriers engaged in interstate or foreign passenger service
323.570
Transport of untaxed products
323.575
Administration and enforcement
323.585
Penalty and interest for failure to pay tax or timely file return
323.595
Application of other statutes
323.597
Disclosure and sharing of information between Department of Revenue and Oregon Health Authority
323.598
Disclosure of license information
323.600
Department determination of amount of tax
323.605
Immediate determination and collection of tax
323.607
Time limit for issuing notice of deficiency for substantial reported understatement of gross purchases net of discounts
323.610
Collection of unpaid tax
323.612
Seizure and forfeiture of contraband tobacco products
323.613
Exchanges of information with other governmental units
323.615
Refund agreement with governing body of Indian reservation
323.618
Venue
323.619
Actions by Attorney General
323.620
Remedies cumulative
323.623
Appeals
323.625
Disposition of moneys other than inhalant delivery system revenues
323.627
Disposition of proceeds of tax imposed on inhalant delivery systems
323.630
Civil and criminal penalties for violations of ORS 323.500 to 323.645
323.632
Offense of unlawful distribution of tobacco products
323.635
Penalties in ORS 323.630 and 323.632 additional to other penalties
323.640
Tax on distributors in lieu of all other state, county or municipal taxes on sale or use of tobacco
323.645
Short title
323.700
Definitions for ORS 323.700 to 323.730
323.703
Delivery sales to persons under 21 years of age prohibited
323.706
Requirements for persons accepting delivery sale purchase orders
323.709
Requirements for persons mailing or shipping tobacco in delivery sales
323.712
Required licenses
323.715
Notice requirements for delivery sales
323.721
Delivery sales reporting requirements
323.724
Noncompliant delivery sales of tobacco prohibited
323.727
Penalties for violating ORS 323.700 to 323.730
323.730
Persons who may bring actions
323.740
Entry and examination by department
323.800
Definitions for ORS 323.800 to 323.807
323.803
Findings and purpose
323.806
Required actions by manufacturers
323.807
Assignment of interest in qualified escrow fund to state
323.810
Definitions for ORS 323.810 to 323.816
323.813
Findings and purpose
323.816
Required actions by manufacturer
323.850
Legislative findings
323.853
Definitions for ORS 323.850 to 323.862
323.856
Tax stamps prohibited on cigarette packages not meeting federal requirements
323.859
Notice
323.862
Disclosure of information
323.865
Rulemaking authority
Green check means up to date. Up to date