Thanks to Measure 108, Cigarette, Other Tobacco Taxes to Increase

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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.

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