Cigarettes and Tobacco News

Nov 12, 2005, SALEM -- The Oregon Department of Revenue is boosting its efforts to collect taxes on cigarettes purchased online. This is the latest step in its year-long campaign to educate Oregon citizens about taxes owed on cigarettes purchased over the internet.

Under Oregon law, people who buy untaxed cigarettes online must pay the tax each month. In an effort to inform the public about this tax, the agency ran statewide newspaper and radio advertising earlier this year, and issued news releases. In early October, the department began sending letters to buyers who had not paid the tax, giving them the opportunity to file and pay voluntarily. Included with the letter was the form needed to pay the tax, penalty, and interest.

“To those folks who didn’t file and pay voluntarily, we’re sending assessment notices beginning November 15,” said Randy Evers, program administrator. The department sends similar notices anytime someone fails to pay their taxes. The current cigarette tax rate is $1.18 per pack, or $11.80 per carton.

To comply with federal law, internet retailers provide to state tax agencies the names and mailing addresses of people who buy cigarettes from them. So far, the department has received nearly 12,000 invoices from several retailers. Each invoice includes the purchaser’s name, address, and the number of cartons purchased. The invoices do not include credit card information.

If you owe tax on cigarettes purchased online, visit www.oregonsmokes.com. Under the heading “Cigarette Tax: Internet/Mail Order” is a link to instructions and Form 514, Oregon Cigarette Consumer’s Monthly Tax Reports. Mail the completed form to the address on the form with a check or money order. You cannot submit the form electronically.

You may also call the department for information, 503-378-4988 (Salem), or 1-800-356-4222 (toll-free from an Oregon prefix). Spanish-speaking taxpayers may call 503-945-8618. For TTY (hearing or speech impaired only), call 1-800-886-7204 (toll-free from an Oregon prefix); or 503-945-8617 (Salem). TTY calls are answered by machine and returned by a representative.