How are tobacco products taxed?
As a retailer, your responsibility is to purchase tobacco products from a licensed distributor. The distributor pays the Oregon tax. Distributors must be licensed by DOR for each place of business where they, or sub-jobbers, distribute other tobacco products. The Oregon tobacco tax rate is 65 percent of the wholesale price of the other tobacco product (not to exceed 50 cents per cigar). The tax is imposed when the distributor: • Brings (or has another company or individual bring) tobacco products for sale, storage, use, or consumption into Oregon; • Makes, manufactures, or fabricates tobacco products in Oregon that will be sold, stored, used or consumed in Oregon; or • Ships or transports tobacco products to retail dealers in this state, to be sold, stored, used, or consumed by those retail dealers. Consumers who buy other tobacco products—via the internet or some other source—must pay the Oregon tax if it was not previously paid. A quarterly tax report that identifies purchases of unt
