Tobacco tax goes into effect January 1

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 an increase in the cigarette tax of $2 per pack of 20 and $2.50 per pack of 25. Also, 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.

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.