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Oregon Cigarette and Tobacco Tax Increase Initiative (2018)
| Oregon Cigarette and Tobacco Tax Increase Initiative | |
|---|---|
 | |
| Election date November 6, 2018 | |
| Topic Taxes and Tobacco | |
| Status Not on the ballot | |
| Type State statute | Origin Citizens |
The Oregon Cigarette and Tobacco Tax Increase Initiative was not on the ballot in Oregon as an initiated state statute on November 6, 2018.
The measure would have increased the cigarette tax by 10 cents (or 100 mills) per cigarette. Therefore, the measure would increase the tax on a package of 20 cigarettes by $2.00. Revenue from the increase would have been distributed to local public health authorities for public health programs.[1]
The measure would have also eliminated the 50-cent cap on the tobacco tax as applied to single cigars and thus tax the wholesale price of cigars at 65 percent.[1]
As of January 1, 2017, the cigarette tax was 6.6 cents (or 66 mills) per cigarette or $1.32 per package of 20 cigarettes.[2]
Text of measure
Full text
The measure would have amended the Oregon Revised Statutes. The following underlined text would have been added, and struck-through text would have been deleted:[1]
Section 1. ORS 323.030 is amended to read: (1) Every distributor shall pay a tax upon distributions of cigarettes at the rate of 29 mills for the distribution of each cigarette in this state. (2) The taxes imposed by ORS 323.005 to 323.482 are in lieu of all other state, county or municipal taxes on the sale or use of cigarettes. (3) Any cigarette with respect to which a tax has been prepaid under ORS 323.068 or has otherwise once been imposed under ORS 323.005 to 323.482 is not subject upon a subsequent distribution to the taxes imposed by ORS 323.005 to 323.482. (4) In addition to and not in lieu of any other tax imposed under ORS 323.005 to 323.482, every distributor shall pay a tax upon distributions of cigarettes at the rate of seven mills for the distribution of each cigarette in this state. (5) In addition to and not in lieu of any other tax imposed under ORS 323.005 to 323.482, every distributor shall pay a tax upon distributions of cigarettes at the rate of 100 mills for the distribution of each cigarette in this state. Section 2. ORS 323.030, as amended by section 16, chapter 5, Oregon Laws 2013 (special session), is amended to read: (1) Every distributor shall pay a tax upon distributions of cigarettes at the rate of 29 mills for the distribution of each cigarette in this state. (2) The taxes imposed by ORS 323.005 to 323.482 are in lieu of all other state, county or municipal taxes on the sale or use of cigarettes. (3) Any cigarette with respect to which a tax has been prepaid under ORS 323.068 or has otherwise once been imposed under ORS 323.005 to 323.482 is not subject upon a subsequent distribution to the taxes imposed by ORS 323.005 to 323.482. (4) In addition to and not in lieu of any other tax imposed under ORS 323.005 to 323.482, every distributor shall pay a tax upon distributions of cigarettes at the rate of 7.5 mills for the distribution of each cigarette in this state. (5) In addition to and not in lieu of any other tax imposed under ORS 323.005 to 323.482, every distributor shall pay a tax upon distributions of cigarettes at the rate of 100 mills for the distribution of each cigarette in this state. Section 3. ORS 323.455 is amended to read: (1) All moneys received by the Department of Revenue from the tax imposed by ORS 323.030 (1) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. The department may pay expenses for administration and enforcement of ORS 323.005 to 323.482 out of moneys received from the tax imposed under ORS 323.030 (1). Amounts necessary to pay administrative and enforcement expenses are continuously appropriated to the department from the suspense account. After the payment of administrative and enforcement expenses and refunds, 89.65 percent shall be credited to the General Fund, 3.45 percent is appropriated to the cities of this state, 3.45 percent is appropriated to the counties of this state and 3.45 percent is continuously appropriated to the Department of Transportation for the purpose of financing and improving transportation services for elderly individuals and individuals with disabilities as provided in ORS 391.800 to 391.830. (2) The moneys appropriated to cities and counties under subsection (1) of this section shall be paid on a monthly basis within 35 days after the end of the month for which a distribution is made. Each city shall receive such share of the money appropriated to all cities as its population, as determined under ORS 190.510 to 190.590 last preceding such apportionment, bears to the total population of the cities of the state, and each county shall receive such share of the money as its population, determined under ORS 190.510 to 190.590 last preceding such apportionment, bears to the total population of the state. (3) The moneys appropriated to the Department of Transportation under subsection (1) of this section shall be distributed and transferred to the Elderly and Disabled Special Transportation Fund established by ORS 391.800 at the same time as the cigarette tax moneys are distributed to cities and counties under this section. (4) Of the moneys credited to the General Fund under subsection (1) of this section, 51.92 percent shall be dedicated to funding the maintenance and expansion of the number of persons eligible for the medical assistance program under ORS chapter 414, or to funding the maintenance of the benefits available under the program, or both, and 5.77 percent shall be credited to the Tobacco Use Reduction Account established under ORS 431A.153. (5) All moneys received by the Department of Revenue from the tax imposed by ORS 323.030 (4) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. After the payment of refunds, the balance shall be credited to the Oregon Health Authority Fund established by ORS 413.101 and shall be used to provide the services described in ORS 430.630. (6) All moneys received by the Department of Revenue from the tax imposed by ORS 323.030 (5) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. After the payment of refunds, the balance shall be credited to the Public Health Account established in ORS 431.210 to be used for the funding of local public health authorities in all areas of the state for public health programs. Section 4. ORS 323.505 is amended to read: (1) A tax is hereby imposed upon the distribution of all 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:
(3) For reporting periods beginning on or after July 1, 2022, the rates of tax applicable to moist snuff under subsection (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) 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. Section 5. The amendments to ORS 323.030 and 323.455 by Sections 1, 2, 3, and 4 of this 2018 Act apply to distributions of cigarettes and tobacco products occurring on or after January 1, 2018. Section 6. If any provision of this 2018 Act is held invalid for any reason, all remaining provisions of this Act shall remain in place and shall be given full force and effect. |
Support
Supporters
- Deborah Kafoury, Chairperson of the Multnomah County Commission
Path to the ballot
Jenn Baker, government relations director of the Oregon Nurses Association, and Deborah Kafoury, chairperson of the Multnomah County Commission, filed the proposal with the Oregon secretary of state on April 25, 2017.[3][4] Oregon requires that 1,000 signatures be submitted before a ballot title is drafted.
Petitioners were required to collect 88,184 valid signatures to get their initiated state statute on the ballot. Signatures for initiatives needed to be submitted four months prior to the election on November 6, 2018, which was July 6, 2018.
Proponents of the measure did not submit signatures before the signature deadline.[5]
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 Oregon Secretary of State, "Initiative 21," accessed April 26, 2017
- ↑ Oregon Legislative Information System, "Taxes on Cigarettes and Other Tobacco Products," accessed April 26, 2017
- ↑ Oregon Secretary of State, "Initiative 21 Overview," accessed April 26, 2017
- ↑ The Oregonian, "Proposed ballot measure would increase cigarette taxes $2 a pack," April 26, 2017
- ↑ Ballotpedia Staff Writer, Telephone communication with Oregon Secretary of State's office, July 9, 2018.
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