2017 ORS 323.800¹
Definitions for ORS 323.800 to 323.806

As used in ORS 323.800 (Definitions for ORS 323.800 to 323.806) to 323.806 (Required actions by manufacturers):

(1) “Adjusted for inflation” means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.

(2)(a) “Affiliate” means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person.

(b) For purposes of defining “affiliate”:

(A) The terms “owns,” “is owned” and “ownership” mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more; and

(B) The term “person” means an individual, partnership, committee, association, corporation or any other organization or group of persons.

(3) “Allocable share” means Allocable Share as that term is defined in the Master Settlement Agreement.

(4)(a) “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 wrapped in any substance containing tobacco 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 subparagraph (A) of this paragraph.

(b) The term “cigarette” includes “roll-your-own tobacco” (i.e., tobacco that, 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). For purposes of this paragraph, 0.09 ounces of roll-your-own tobacco shall constitute one individual cigarette.

(5) “Importer” means:

(a) Any person in the United States to whom cigarettes are shipped or consigned, if federal excise tax has not been paid on the cigarettes, and if the cigarettes are manufactured in a foreign country;

(b) Any person who removes cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; or

(c) Any person who smuggles or otherwise unlawfully brings cigarettes into the United States.

(6) “Master Settlement Agreement” means the settlement agreement (and related documents) entered into on November 23, 1998, by the State of Oregon and leading United States tobacco product manufacturers.

(7) “Qualified escrow fund” means an escrow arrangement with a federally or state chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least $1 billion where such arrangement requires that such financial institution hold the escrowed funds’ principal for the benefit of releasing parties and prohibits the tobacco product manufacturer who is placing the funds into escrow from using, accessing or directing the use of the escrowed funds’ principal except as consistent with ORS 323.806 (Required actions by manufacturers) (1)(b)(B).

(8) “Released claims” means Released Claims as that term is defined in the Master Settlement Agreement.

(9) “Releasing parties” means Releasing Parties as that term is defined in the Master Settlement Agreement.

(10)(a) “Tobacco product manufacturer” means an entity that, after October 23, 1999, directly (and not exclusively through any affiliate):

(A) Manufactures cigarettes anywhere that such manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an Original Participating Manufacturer (as that term is defined in the Master Settlement Agreement) that will be responsible for the payments under the Master Settlement Agreement with respect to such cigarettes as a result of the provisions of subsection II(mm) of the Master Settlement Agreement and that pays the taxes specified in subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of such cigarettes does not market or advertise such cigarettes in the United States);

(B) Is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or

(C) Becomes a successor of an entity described in subparagraph (A) or (B) of this paragraph.

(b) The term “tobacco product manufacturer” does not include an affiliate of a tobacco product manufacturer unless such affiliate is itself a tobacco product manufacturer under paragraph (a)(A), (B) or (C) of this subsection.

(11)(a) “Units sold” means the number of individual cigarettes sold in the State of Oregon by the applicable tobacco product manufacturer (whether directly or through a distributor, retailer or similar intermediary or intermediaries) during the year in question that are required to bear the excise tax stamp of this state or that are sold as “roll-your-own tobacco” on which excise tax is due. The Department of Revenue and the Attorney General may promulgate such rules as are necessary to ascertain the number of units sold of such tobacco product manufacturer for each year.

(b) “Units sold” does not include cigarettes neither the purchase nor the use of which the state may tax under the Constitution or statutes of the United States. [Formerly 293.533; 2005 c.22 §228; 2007 c.707 §1; 2017 c.687 §1]

Note: 323.800 (Definitions for ORS 323.800 to 323.806) to 323.806 (Required actions by manufacturers) were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 323 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Chapter 323

Notes of Decisions

This chapter was not intended to impose a tax on cigarettes sold by an Oregon distributor, to be shipped out of state and sold out of state to ultimate consumers for use out of state. Carter & Son v. Dept. of Rev., 5 OTR 379 (1974)

1 Legislative Counsel Committee, CHAPTER 323—Cigarettes and Tobacco Products, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors323.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 323, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano323.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.