1. (1) The following entities are required to post security in the form of a surety bond in an amount equal to twice the licensee’s average quarterly tobacco tax liability:

   1. (a) A licensee that fails to furnish a tobacco tax return in two consecutive calendar quarters; or
   2. (b) A licensee that fails to pay the tobacco products tax in full in two consecutive calendar quarters

2. (2) The following entities are required to post security in the form of a surety bond in an amount equal to twice the licensee’s average quarterly tobacco tax liability as determined by the licensee’s projected sales or in the amount of $1,000, whichever is greater:

   1. (a) An unlicensed individual or business that is seeking an initial license;
   2. (b) A new licensee who has not previously filed a tobacco product tax return that fails to furnish a tobacco tax return in two consecutive quarters; or
   3. (c) A new licensee who has not previously filed a tobacco product tax return that fails to pay the tobacco products tax in full in two consecutive calendar quarters.

3. (3) If any of the following circumstances occur, the department may increase the current required bond amount to an amount equal to twice the licensee’s average quarterly tobacco tax liability:

   1. (a) The distributor reaches its bond or security limit;
   2. (b) The bond or security becomes ineffective; or
   3. (c) The surety cancels the bond or security.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 323.525

History

REV 49-2020, amend filed 12/23/2020, effective 01/01/2021
Renumbered from 150-323.525, REV 73-2016, f. 8-15-16, cert. ef. 9-1-16
RD 6-1985, f. 12-26-85, cert. ef. 12-31-85