323.505 Tax
imposed on distribution of tobacco products other than oral nicotine products;
rate. (1) A tax is
hereby imposed upon the distribution of tobacco products in this state. The tax
imposed by this section is intended to be a direct tax on the consumer, for
which payment upon distribution is required to achieve convenience and facility
in the collection and administration of the tax. The tax shall be imposed on a
distributor at the time the distributor distributes tobacco products.
(2) The tax
imposed under this section shall be imposed at the rate of:
(a) Sixty-five
percent of the wholesale sales price of cigars, but not to exceed one dollar
per cigar;
(b) One dollar
and seventy-eight cents per ounce based on the net weight determined by the
manufacturer, in the case of moist snuff, except that the minimum tax under
this paragraph is $2.14 per retail container; or
(c) Sixty-five
percent of the wholesale sales price of all tobacco products that are not
cigars, moist snuff or oral nicotine products.
(3) For reporting
periods beginning on or after July 1, 2022, the rates of tax applicable to
moist snuff under subsection (2)(b) of this section shall be adjusted for each
biennium according to the cost-of-living adjustment for the calendar year. The
Department of Revenue shall recompute the rates for each biennium by adding to
the rates in subsection (2)(b) of this section the product obtained by
multiplying the rates in subsection (2)(b) of this section by a factor that is
equal to 0.25 multiplied by the percentage (if any) by which the monthly
averaged U.S. City Average Consumer Price Index for the 12 consecutive months
ending August 31 of the prior calendar year exceeds the monthly averaged U.S.
City Average Consumer Price Index for the 12 consecutive months ending August
31, 2020.
(4) If the tax
imposed under this section does not equal an amount calculable to a whole cent,
the tax shall be equal to the next higher whole cent. However, the amount
remitted to the Department of Revenue by the taxpayer for each quarter shall be
equal only to 98.5 percent of the total taxes due and payable by the taxpayer
for the quarter.
(5) A tax under
this section is not imposed on inhalant delivery systems that are:
(a) Marketed and
sold solely for the purpose of vaporizing or aerosolizing marijuana items as
defined in ORS 475C.009; or
(b) Purchased in
a medical marijuana dispensary that is registered under ORS 475C.833 by a
person to whom a registry identification card has been issued under ORS
475C.783.
(6) No tobacco
product shall be subject to the tax if the base product or other intermediate
form thereof has previously been taxed under this section. [1985 c.816 §16;
1997 c.2 §9; 1999 c.21 §60; 2001 c.982 §3; 2003 c.46 §48; 2003 c.804 §32; 2009
c.717 §2; 2013 s.s. c.5 §18a; 2019 c.525 §12; 2025 c.581 §4a]
Notes of Decisions
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
· cites it 12× “” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
Straube v. Myers, 132 P.3d 658 (Or. 2006).
· cites it 2× “The proposed measure also would increase direct taxes on the consumers of tobacco products by amending an existing statute, ORS 323.505. Currently, those taxes are fixed at a rate of 65 percent of the wholesale price of the tobacco product (not to exceed 50 cents per cigar).”
Global Hookah Distributors Inc. v. Dept. of Rev. (Or. T.C. 2015).
· cites it 10× “, 20 OTR 273 , 276–77 (2011) (citing ORS 323.505). “Tobacco products” are defined as “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…”
Global Distrib. & Wholesaler v. Dep't of Revenue (Or. T.C. 2012).
· cites it 7× “Plaintiff is undoubtedly a “distributor” who “distribute[d],” and thus subject to taxation under ORS 323.505. A. Taxability of packaging and exclusivity and promotional fees To address the more difficult issues, the court must determine which of the items distributed by…”
Wilson/Fitz v. Rosenblum (Or. 2017).
· cites it 2× “ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Wilson/Fitz v. Rosenblum (Or. 2017).
· cites it 2× “ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Scappoose Smoke Shop v. Dep't of Revenue (Or. T.C. 2013).
· cites it 3× “500(7)(d); ORS 323.505; ORS 323.538(4)(b). The scope of the court’s inquiry is limited to whether Plaintiff has shown that tax was paid on the Richwood cigars and the Starbuzz shisha.”
Dixon v. Dep't of Revenue (Or. T.C. 2013).
· cites it 3× “However, the Hemi 3 Plaintiffs also cite ORS 323.505 in support of this argument. (Ptfs’ Closing Arg at 3-4.”
— Or. Rev. Stat. § 323.505(1) — 6 cases
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
“” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
Global Hookah Distributors Inc. v. Dept. of Rev. (Or. T.C. 2015).
“, 20 OTR 273 , 276–77 (2011) (citing ORS 323.505). “Tobacco products” are defined as “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…”
Global Distrib. & Wholesaler v. Dep't of Revenue (Or. T.C. 2012).
“Plaintiff is undoubtedly a “distributor” who “distribute[d],” and thus subject to taxation under ORS 323.505. A. Taxability of packaging and exclusivity and promotional fees To address the more difficult issues, the court must determine which of the items distributed by…”
Scappoose Smoke Shop v. Dep't of Revenue (Or. T.C. 2013).
“500(7)(d); ORS 323.505; ORS 323.538(4)(b). The scope of the court’s inquiry is limited to whether Plaintiff has shown that tax was paid on the Richwood cigars and the Starbuzz shisha.”
— Or. Rev. Stat. § 323.505(1)(a) — 1 case
— Or. Rev. Stat. § 323.505(2) — 3 cases
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
“” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
Straube v. Myers, 132 P.3d 658 (Or. 2006).
“The proposed measure also would increase direct taxes on the consumers of tobacco products by amending an existing statute, ORS 323.505. Currently, those taxes are fixed at a rate of 65 percent of the wholesale price of the tobacco product (not to exceed 50 cents per cigar).”
Global Hookah Distributors Inc. v. Dept. of Rev. (Or. T.C. 2015).
“, 20 OTR 273 , 276–77 (2011) (citing ORS 323.505). “Tobacco products” are defined as “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…”
— Or. Rev. Stat. § 323.505(2)(a) — 3 cases
Wilson/Fitz v. Rosenblum (Or. 2017).
“ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Wilson/Fitz v. Rosenblum (Or. 2017).
“ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Global Distrib. & Wholesaler v. Dep't of Revenue (Or. T.C. 2012).
“Plaintiff is undoubtedly a “distributor” who “distribute[d],” and thus subject to taxation under ORS 323.505. A. Taxability of packaging and exclusivity and promotional fees To address the more difficult issues, the court must determine which of the items distributed by…”
— Or. Rev. Stat. § 323.505(2)(b) — 4 cases
Global Distrib. & Wholesaler v. Dep't of Revenue (Or. T.C. 2012).
“Plaintiff is undoubtedly a “distributor” who “distribute[d],” and thus subject to taxation under ORS 323.505. A. Taxability of packaging and exclusivity and promotional fees To address the more difficult issues, the court must determine which of the items distributed by…”
Wilson/Fitz v. Rosenblum (Or. 2017).
“ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Wilson/Fitz v. Rosenblum (Or. 2017).
“ORS 323.505(2)(a). For other tobacco products, the tax is either a similar percentage of the wholesale price or an amount by weight of the product.”
Global Hookah Distributors Inc. v. Dept. of Rev. (Or. T.C. 2015).
“, 20 OTR 273 , 276–77 (2011) (citing ORS 323.505). “Tobacco products” are defined as “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…”
— Or. Rev. Stat. § 323.505(2)(c) — 2 cases
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
“” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
Global Hookah Distributors Inc. v. Dept. of Rev. (Or. T.C. 2015).
“, 20 OTR 273 , 276–77 (2011) (citing ORS 323.505). “Tobacco products” are defined as “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…”
— Or. Rev. Stat. § 323.505(3) — 1 case
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
“” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
— Or. Rev. Stat. § 323.505(4) — 1 case
Global Distrib. & Wholesaler v. Dep't of Revenue (Or. T.C. 2012).
“Plaintiff is undoubtedly a “distributor” who “distribute[d],” and thus subject to taxation under ORS 323.505. A. Taxability of packaging and exclusivity and promotional fees To address the more difficult issues, the court must determine which of the items distributed by…”
— Or. Rev. Stat. § 323.505(5) — 1 case
Global Hookah Distributors, Inc. v. Dept. of Rev., 24 Or. Tax 562 (Or. T.C. 2021).
“” See ORS 323.505 (1)(c); ORS 323.500(16). On its TPT returns for the periods at issue, taxpayer calculated its “wholesale sales price” for tobacco products sold into Oregon using the line-item price for those products as shown on the invoices from suppliers.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.