Oregon cigarette tax goes up Jan. 1

Written by Peter Wong

Oregon’s cigarette tax will go up Jan. 1.
The actual tax is applied on individual cigarettes. The tax will go up from $1.18 to $1.31 on a standard pack of 20 cigarettes. It will be the first increase since 2004, when it actually dropped from $1.28 to $1.18 as the result of voter rejection of a ballot measure for a budget-balancing tax increase. It had been at $1.28 for a decade, but a 10-cent increment had to be renewed every two years, and expired in 2004.
Proceeds from cigarette taxes go to the Oregon Health Plan, the state general fund, and a special account for tobacco-use reduction. There are earmarked shares for cities, counties, special transportation for older people and people with disabilities, and now, mental health programs. Lawmakers added the latter category in a special session this year.
“Ordinarily, the consumer pays the tax as a part of the price when purchasing cigarettes from an Oregon retailer. Consumers must remember that they are responsible for filing and paying the tax on cigarettes purchased on-line or otherwise brought in from outside the state,” said Chris Wytoski, manager of Oregon’s tobacco tax program in the Department of Revenue.
There is also a $1.01 federal tax.
pwong@StatesmanJournal.com or (503) 399-6745 or twitter.com/capitolwong 
http://www.statesmanjournal.com/article/20131226/UPDATE/131226021/Oregon-cigarette-tax-goes-up-Jan-1