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 Jan. 1, 2021.
As a result of the passage of Measure 108, consumers will see the following:
- The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.
- 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.
- The cap on the tax on cigars increases from 50 cents to $1.
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.
More information about changes to tobacco taxes can be found in the answers to a list of frequently asked asked questions on the Oregon Department of Revenue website.
