Current through Register Vol. 63, No. 9, September 1, 2024
(1) The Department
of Revenue may impose civil penalties on any person who violates any provision
of cigarette tax law. The violations include, but are not limited to, those
described under subsection (3) of this rule.
(2) The following civil penalties will be
imposed on a per incident basis for the violations in subsection (3) of this
rule:
Incident - Penalty not to exceed
First - Warning notice
Second - $250
Third - $500
Fourth and subsequent - $1,000
(3) The civil penalties outlined in
subsection (2) of this rule may be imposed for the following violations of ORS
323.005 to
323.482:
(a) ORS
323.060: Failure by a user or
consumer to pay tax;
(b) ORS
323.105: Failure by a
distributor to apply for and obtain a distributor's license;
(c) ORS
323.107: Failure by a wholesaler
to apply for and obtain a wholesaler's license and make, preserve and supply
records;
(d) ORS
323.130: Failure to display a
license at the business location for which it was issued;
(e) ORS
323.165(1):
Failure to obtain written approval from the Department of Revenue before
selling, exchanging, or transferring unaffixed stamps to another person;
(f) ORS
323.170: Failure by a
distributor to pay for stamps as provided in ORS
323.005 to
323.482 and failure by a
distributor to notify the department of the number of packages of cigarettes to
which the distributor affixes a stamp;
(g) ORS
323.185(1):
Failure of the distributor to make payments of amounts owing for stamps
purchased on the deferred-payment basis;
(h) ORS
323.205: Failure of
manufacturers selling and shipping cigarettes into this state to other than a
licensed distributor to:
(A) Deliver a
written statement with each sale or consignment of cigarettes;
(B) Deliver a duplicate of that statement to
the Department of Revenue; and
(C)
File each cancellation or modification of the written statement and any other
information necessary to the reconciliation of accounts with the Department of
Revenue;
(i) ORS
323.211: Failure of
distributors, dealers, and other persons engaging in the sale of cigarettes
through the use of a vending machine(s) to affix the statutorily required card
or decal in a conspicuous place on each machine;
(j) ORS
323.215: Failure of
distributors, dealers, and other persons selling cigarettes through a vending
machine(s) to keep detailed records of each machine showing the location of the
machine and the date the machine was placed in that location;
(k) ORS
323.220: Failure of distributors
and persons dealing in, transporting or storing cigarettes in this state to:
(A) Keep on premises records, receipts,
invoices, and other pertinent papers; and
(B) Refrain from destroying records if so
ordered by the Department of Revenue;
(l) ORS
323.225: Failure of transporters
seeking to possess or acquire untaxed cigarettes for transportation or
transport upon highways, roads, or streets of this state to:
(A) Obtain and keep a permit in the
transporting vehicle during the transportation of the cigarettes; and
(B) Have the required invoices or
bill of lading in the transporting vehicle;
(m) ORS
323.335: Failure of:
(A) Distributors to pay tax;
(B) Taxpayers other than licensed
distributors to pay tax; and
(C)
Common carriers and persons authorized to sell cigarettes on the facilities of
common carriers to pay tax;
(n) ORS
323.340(1):
Failure of licensed distributors to file reports;
(o) ORS
323.343: Failure of any person
not a distributor, who had cigarette activity in this state, to file a report;
(p) ORS
323.355: Failure of common
carriers and persons authorized to sell cigarettes on the facilities of common
carriers to file reports and submit payment of tax due with the reports; and
(q) ORS
323.360: Failure of a consumer
or user subject to the tax resulting from a distribution of cigarettes to file
reports and submit payment of the tax due with the reports.
(4) The department may consider
the following factors when deciding the civil penalty under this rule:
(a) Number of previous inspections held by
the Department of Revenue at the place of business;
(b) Number of previous violations of Chapter
323 provisions;
(c) Size of
business; and
(d) Any other
factors or information the department considers relevant to its determination.
(5) A civil penalty
authorized by ORS 323.480(1) and
this rule may be imposed on any person, as defined in ORS
323.010, who is responsible for
complying with ORS 323.005 to
323.482.
Stat. Auth.: ORS
305.100 &
323.440
Stats. Implemented: ORS
323.480
