1. (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:

   1. (a) The business name, address and identification number of the person engaging in cigarette activity;
   2. (b) The source and destination of the shipment of cigarettes;
   3. (c) The transporter’s business name and address;
   4. (d) The dates the cigarettes were shipped;
   5. (e) The total number of cigarettes shipped into and the total number of cigarettes shipped out of Oregon;
   6. (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
   7. (g) Other information requested on the department’s form.

2. (2) For purposes of this rule, the following are presumed not to constitute “cigarette tax activity in this state”:

   1. (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
   2. (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. (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.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 323.343

History

Renumbered from 150-323.343, REV 73-2016, f. 8-15-16, cert. ef. 9-1-16
REV 3-2002, f. 6-26-02, cert. ef. 6-30-02