Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 323 - CIGARETTE TAXES › Section 150-323-0290 - Civil Penalties for Violation of Cigarette Tax Provisions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The Department
			 of Revenue may impose civil penalties on any person who violates any provision
			 of cigarette tax law. The violations include, but are not limited to, those
			 described under subsection (3) of this rule.
(2) The following civil penalties will be
			 imposed on a per incident basis for the violations in subsection (3) of this
			 rule:
Incident - Penalty not to exceed
First - Warning notice
Second - $250
Third - $500
Fourth and subsequent - $1,000
(3) The civil penalties outlined in
			 subsection (2) of this rule may be imposed for the following violations of ORS
			 323.005 to
			 323.482:
(a) ORS
			 323.060: Failure by a user or
			 consumer to pay tax;
(b) ORS
			 323.105: Failure by a
			 distributor to apply for and obtain a distributor's license;
(c) ORS
			 323.107: Failure by a wholesaler
			 to apply for and obtain a wholesaler's license and make, preserve and supply
			 records;
(d) ORS
			 323.130: Failure to display a
			 license at the business location for which it was issued;
(e) ORS
			 323.165(1):
			 Failure to obtain written approval from the Department of Revenue before
			 selling, exchanging, or transferring unaffixed stamps to another person;
(f) ORS
			 323.170: Failure by a
			 distributor to pay for stamps as provided in ORS
			 323.005 to
			 323.482 and failure by a
			 distributor to notify the department of the number of packages of cigarettes to
			 which the distributor affixes a stamp;
(g) ORS
			 323.185(1):
			 Failure of the distributor to make payments of amounts owing for stamps
			 purchased on the deferred-payment basis;
(h) ORS
			 323.205: Failure of
			 manufacturers selling and shipping cigarettes into this state to other than a
			 licensed distributor to:
(A) Deliver a
			 written statement with each sale or consignment of cigarettes;
(B) Deliver a duplicate of that statement to
			 the Department of Revenue; and
(C)
			 File each cancellation or modification of the written statement and any other
			 information necessary to the reconciliation of accounts with the Department of
			 Revenue;
(i) ORS
			 323.211: Failure of
			 distributors, dealers, and other persons engaging in the sale of cigarettes
			 through the use of a vending machine(s) to affix the statutorily required card
			 or decal in a conspicuous place on each machine;
(j) ORS
			 323.215: Failure of
			 distributors, dealers, and other persons selling cigarettes through a vending
			 machine(s) to keep detailed records of each machine showing the location of the
			 machine and the date the machine was placed in that location;
(k) ORS
			 323.220: Failure of distributors
			 and persons dealing in, transporting or storing cigarettes in this state to:
(A) Keep on premises records, receipts,
			 invoices, and other pertinent papers; and
(B) Refrain from destroying records if so
			 ordered by the Department of Revenue;
(l) ORS
			 323.225: Failure of transporters
			 seeking to possess or acquire untaxed cigarettes for transportation or
			 transport upon highways, roads, or streets of this state to:
(A) Obtain and keep a permit in the
			 transporting vehicle during the transportation of the cigarettes; and
(B) Have the required invoices or
			 bill of lading in the transporting vehicle;
(m) ORS
			 323.335: Failure of:
(A) Distributors to pay tax;
(B) Taxpayers other than licensed
			 distributors to pay tax; and
(C)
			 Common carriers and persons authorized to sell cigarettes on the facilities of
			 common carriers to pay tax;
(n) ORS
			 323.340(1):
			 Failure of licensed distributors to file reports;
(o) ORS
			 323.343: Failure of any person
			 not a distributor, who had cigarette activity in this state, to file a report;
(p) ORS
			 323.355: Failure of common
			 carriers and persons authorized to sell cigarettes on the facilities of common
			 carriers to file reports and submit payment of tax due with the reports; and
(q) ORS
			 323.360: Failure of a consumer
			 or user subject to the tax resulting from a distribution of cigarettes to file
			 reports and submit payment of the tax due with the reports.