Oregon’s voter-approved cigarette tax hike, new e-cigarette tax begin Friday

(Adding Oregon Dept. of Revenue details)

American Cancer Society says higher taxes cut tobacco use

PORTLAND, Ore. (KTVZ) -- Beginning Friday, Jan. 1, Oregon's tax on cigarettes will increase by $2 per pack and e-cigarettes will be taxed for the first time in Oregon, after voters overwhelmingly approved Measure 108 last month, supporters said Monday.

The American Cancer Society Cancer Action Network (ACS CAN) was one of the leading health organizations working as part of the Yes on 108 campaign to pass Measure 108, which won 2-to-1 voter approval.

Oregon’s cigarette tax will now be $3.33 per pack, the sixth-highest in the nation and the highest on the West Coast.

"Significantly raising the price of all tobacco products is proven to reduce use, and this new cigarette tax is projected to save nearly 12,000 Oregon lives and keep nearly 19,000 kids and young adults from starting to smoke," the cancer-fighting organization said in its news release, which continues in full below:  

“This is the most significant cigarette tax increase in Oregon history that will reduce smoking rates. And by finally taxing e-cigarettes, we can fight the epidemic of youth e-cigarette use and take a critical step forward to protect young people from being targeted by the tobacco industry into a lifetime addiction,” said Jamie Dunphy, Oregon government relations director for ACS CAN. “This is a major victory for everyone, because we know that tobacco use is still the leading cause of preventable death.”

ACS CAN encourages Oregonians who want to quit using tobacco to contact the state’s Tobacco Quit Line at 1-800-QUIT-NOW or online at quitnow.net/Oregon. En Espanol at 1-800-1-855-DEJELO-YA or quitnow.net/Oregonsp.

In addition to saving lives, the cigarette tax increase is projected to raise nearly $135 million in annual revenue, according to projections from ACS CAN, the Campaign for Tobacco-Free Kids and Tobacconomics.

The new revenue will provide access to health care on the Oregon Health Plan at a time when health care coverage is critical, and fund the state’s tobacco prevention and cessation programs to help people quit tobacco successfully. Oregon’s tobacco control program is funded at just 25.6% of the level recommended by the Centers for Disease Control and Prevention, ACS CAN said.

“This new tobacco tax is a triple win: it will save lives, fund lifesaving health care programs and reduce health care costs for everyone,” Dunphy continued. Smoking currently costs the state $1.54 billion in annual health care costs including $347.6 million in Medicaid costs. Each Oregon household pays $736 in taxes to offset these smoking-related costs.

The American Cancer Society Cancer Action Network (ACS CAN) is making cancer a top priority for public officials and candidates at the federal, state and local levels. ACS CAN empowers advocates across the country to make their voices heard and influence evidence-based public policy change as well as legislative and regulatory solutions that will reduce the cancer burden.

As the American Cancer Society’s nonprofit, nonpartisan advocacy affiliate, ACS CAN is critical to the fight for a world without cancer. For more information, visit www.fightcancer.org.

News release:

Cigarette, other tobacco taxes increase January
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.