Oregon Dept. of Revenue – 12/29/20 9:44 AM
Salem, OR—A series of increases in the taxes on cigarettes and other tobacco products and a new tax on inhalant delivery products, approved by Oregon voters in November, will go into effect January 1, 2021.
As a result of the passage of Measure 108, consumers will see the following:
• The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.
• Little cigars, collectively weighing 3 pounds or less per 1,000, must be sold in sealed packages of at least 20. The packs will be taxed as cigarettes and will require an Oregon cigarette tax stamp.
• 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.
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.
More information about changes to tobacco taxes can be found in the answers to a list of frequently asked asked questions on the Department of Revenue 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 spa.help@oregon.gov.
To get tax forms, check the status of your refund, or make tax payments, visit www.oregon.gov/dor or email questions.dor@oregon.gov. 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.
