Out-of-state and internet sellers who sell tobacco products to Oregon consumers are subject to the same regulation as sellers located in Oregon. Internet sellers are also subject to federal and state laws governing delivery sales.
As a matter of state law, a person accepting a purchase order for a delivery sale, prior to the first mailing, shipment or other delivery of tobacco to a consumer, must comply with all applicable laws including:
The age verification requirements set forth in ORS 323.709;
The distributor license requirements set forth in ORS 323.712;
The federal PACT Act requires any person who sells, transfers, or ships cigarettes, roll-your-own tobacco, and smokeless tobacco into a state to register with the tobacco tax administrator of the state. The federal PACT Act requires delivery sellers to comply with shipping requirements.
Before distributing tobacco products in Oregon, all persons must obtain a Distributor License. In addition, transporters must apply for a Permit for Transportation of Untaxed Tobacco Products to possess, acquire for transportation, or transport untaxed tobacco products. Transporters must carry the permit and all invoices or bills of lading covering the shipment in the vehicle during transport. Additional information about licensing in Oregon is available at the Operating Your Business link above.
Oregon has specific age verification requirements for the shipping of tobacco products. Delivery sellers must obtain signed written certifications that their customers meet the minimum age, as well as a copy of each customer’s valid, government-issued identification showing age or date of birth, prior to shipping any tobacco products. Sellers may only accept payment issued in the name of the prospective purchaser (i.e., a debit/credit card or personal check issued in that individual’s name) for each sale, and must use a shipping method that requires a signature and photo identification from the customer or another non-minor individual residing at the same address.
Oregon imposes a tax on the distribution of all tobacco products in the state. For shipping purposes, the tax is imposed on a distributor at the time the distributor: brings, or causes to be brought into Oregon from without the state tobacco products for sale, storage, use, or consumption; or ships or transports tobacco products to retail dealers in Oregon, to be sold, stored, used, or consumed by those retail dealers.
For persons who bring untaxed tobacco products other than cigarettes into Oregon for resale, which includes blunt wraps, shisha, cigars, chew, roll-your-own, loose-leaf tobacco, and more, a Tobacco Products Distributor’s License is required. Licensed tobacco products distributors must file an Oregon Quarterly Tax Return for Tobacco Distributors (Form 530) and the associated schedules on or before the last day of January, April, July, and October of each year, along with payment for taxes due.
When tobacco products, upon which the appropriate tax has been reported and paid, are shipped or transported by a distributor to retail dealers outside of the state, to be sold by those retail dealers, or are returned to the manufacturer by the distributor or destroyed by the distributor, credit for the paid tax may be made to the distributor.
Please note that a person that accepts a purchase order for a delivery sale of tobacco products may not make a delivery sale of tobacco products in Oregon if the sales invoice for the delivery sale does not comply with requirements found in ORS 323.538.