Following the approval of statewide Measure 108 by voters on Tuesday, the Oregon Department of Revenue is moving forward with implementing tax increases on tobacco and adding a new vaping tax. Taxes will apply beginning next year.
The department laid out the following tax increases set to begin Jan. 1. It includes establishing taxes on vaping and e-cigarettes.
The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.
Little cigars, collectively weighing less than 3 pounds per 1,000, will be taxed as cigarettes, will require an Oregon cigarette tax stamp, and must be sold in sealed packages of at least 20.
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.
The revenue department also announced they’ll seek public input on how to implement Measure 108 at a hearing on November 24.
Funds generated from these taxes will go to the Oregon Health Authority for public health services, including tobacco-use prevention programs and supporting the Oregon Health Plan.
More information from the Department of Revenue can be found here.
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