Current through Register Vol. 63, No. 9, September 1, 2024
(1) A person who engages in cigarette tax
activity in this state, as defined in ORS
323.010(2) and
this rule, but who is not licensed to distribute cigarettes in Oregon, must
file with the Department of Revenue reports prescribed by the department on or
before the 20th day of January, April, July and October. Those reports must
contain the following information regarding each shipment of cigarettes that
occurred during the quarter:
(a) The business
name, address and identification number of the person engaging in cigarette
activity;
(b) The source and
destination of the shipment of cigarettes;
(c) The transporter's business name and
address;
(d) The dates the
cigarettes were shipped;
(e) The
total number of cigarettes shipped into and the total number of cigarettes
shipped out of Oregon;
(f) The
number of cigarettes in the taxpayer's inventory that were located in Oregon at
the beginning of the quarter and the number of cigarettes in the taxpayer's
inventory that were located in Oregon at the end of the quarter; and
(g) Other information requested on the
department's form.
(2)
For purposes of this rule, the following are presumed not to constitute
"cigarette tax activity in this state":
(a)
Transporting a sealed shipment of cigarettes through Oregon in a continuous
process under authority of a Motor Property Carrier and Broker Certificate of
Authority issued by the Federal Motor Carrier Safety Administration; or
(b) Storing a sealed shipment of
cigarettes in a public warehouse or other public storage facility that is owned
by a person who is not the owner of the cigarettes and who has no intent to
sell the cigarettes either within or without this state.
(3) For purposes of this rule, transferring
or breaking up a shipment of cigarettes to more than one vehicle or more than
one carrier or unsealing a sealed shipment of cigarettes in Oregon is presumed
to show intent to sell cigarettes either within or without this state.
Example 1
: AB Partnership is
not licensed to distribute cigarettes in Oregon. The partnership purchases
cigarettes in California and transports them by common carrier from California
to Washington State. The load is sealed at the point of departure in California
and is transported to Washington where it is unsealed and the contents verified
with the bill of lading. AB Partnership is not required to file a report under
this provision.
Example 2
: Same facts as Example 1, except that the trailer containing the
shipment is dropped at the carrier's terminal in Medford, Oregon where it is
picked up by another driver or carrier and transported to Washington state
where it is unsealed and the contents verified. No report is required under
this provision.
Example 3
: Same facts as Example 2, except that the shipment is unsealed at
the Medford terminal and reloaded into smaller delivery vans. Part of the
original shipment is sent to Washington and part is sent to Idaho. The owner of
the cigarettes, AB Partnership, is required to file a report under this
provision because the continuous process of transportation through the state
was broken when the shipment was unsealed while in Oregon.
Stat. Auth.: ORS
305.100 Stat. Implemented: ORS
323.343
