Oregon Smoke Shops Dealing With Measure 108 Changes
Vape products will be taxed 65% of the wholesale purchase price
Measure 108, passed during the general election in November, sparked a series of changes in the state’s Tabacco laws. Some of the biggest changes under the measure include an increase in the cigarette tax of $2 per pack of 20 cigarettes (going from $1.33 to $3.33) and vape products and other inhalant delivery systems will be taxed 65% of the wholesale purchase price.
Additionally, the measure recategorizes the tax bracket that certain tobacco products fall under. This change has caused some distributors to have to apply for new licensure in order to sell products they had already been selling.
For example, “little cigars,” commonly known as cigarillos will now be taxed the same as cigarettes. Smoke shops wanting to sell cigarillos after Measure 108 goes into effect will have to get a cigarette distributor’s license, or buy cigarillos from an Oregon licensed cigarette distributor or wholesaler to skirt around getting licensure themselves.
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