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Home Laws USA State moves ahead with M. 101 tobacco tax hike, new e-cigarette/vaping tax

State moves ahead with M. 101 tobacco tax hike, new e-cigarette/vaping tax

To fund health care for low-income families, public health programs

SALEM, Ore. (KTVZ) –With the approval of Measure 108 by Oregon voters earlier this week, the Department of Revenue said Thursday it is moving ahead with the implementation of increases in cigarette and tobacco taxes along with a new tax on inhalant delivery products.

As a result of the passage of the measure, the public will see the following changes beginning January 1:
• The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.
• Little cigars, collectively weighing less than 3 pounds per 1,000, will be taxed as cigarettes, will require an Oregon cigarette tax stamp, and must be sold in sealed packages of at least 20.
• Inhalant delivery systems, such as vaping and e-cigarette products, will be taxed at a rate of 65% of the wholesale purchase price.
• The cap on the tax on cigars increases from 50 cents to $1.

As outlined in the approved ballot measure, revenue produced by the tax changes will be used by the Oregon Health Authority to fund health care coverage for low-income families, including mental health services, and public health programs, including programs addressing tobacco- and nicotine-related disease.

The Department of Revenue will hold a public hearing on Tuesday, Nov. 24 on a series of administrative rules implementing the changes. Information about the hearing is available on the agency’s website.

Tobacco distributors and retailers, inhalant delivery product and e-cigarette dealers, and the public can also find answers to a list of frequently asked questions on the website.

To stay updated on Oregon cigarette and tobacco tax law changes, interested parties can subscribe to email updates. Those with questions can call 503-945-8120 or email [email protected].

To get tax forms, check the status of your refund or make tax payments, visit www.oregon.gov/dor or email [email protected]. You also can call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing- or speech-impaired), we accept all relay calls.

Election / Government-politics / News / Oregon-Northwest / Top Stories

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