Tobacco and E-Cigarette Tax Increase for Health Programs Measure

Oregon Ballot Measure - HB 2270, Measure 108

Election: Nov. 3, 2020 (General)

Outcome: Passed

Categories:

Health and Health Care
Taxes

Summary


Increases the tax rate on cigarette distributions. Dedicates taxes from the additional cigarette tax rate to state’s medical assistance program including mental health services, and various programs addressing tobacco and nicotine use related health issues. Amends expense payment provisions in cigarette tax administration and enforcement. Prescribes a floor tax and dedicates such tax to the Oregon Health Authority Fund. Includes little cigars in the definition of cigarettes. Adds to statutes the definition of inhalant delivery system for the purpose of taxing tobacco products. Imposes tax on such system. Dedicates taxes from inhalant delivery system to state's medical assistance program including mental health services, and various programs addressing tobacco and nicotine use related health issues. Removes the cap on the cigar tax. Makes the sale of cigarettes in packages with fewer than 20 cigarettes illegal. Makes the sale of cigars illegal unless the wholesale price of the individual cigar or a package of cigars is above a certain level. Applies to cigarette and tobacco products taxes beginning on or after January 1, 2021. Specifies reporting and information sharing mechanism. Refers this act to the next general election for approval or rejection.

Measure Text


SECTION 14. All moneys received by the Department of Revenue under the tax imposed on inhalant delivery systems by ORS 323.505 shall be deposited in the State Treasury and credited to a suspense account established under ORS 293.445. After the payment of refunds or credits arising from erroneous overpayments, the remaining balance shall be distributed as follows:
(1) 90 percent of the moneys are continuously appropriated to the Oregon Health Authority for the purposes of funding the maintenance and expansion of the number of persons eligible for medical assistance and funding the maintenance of benefits available under the medical assistance program, including mental health services.
(2) 10 percent of the moneys are continuously appropriated to the Oregon Health Authority for distribution to tribal health providers, Urban Indian Health programs, regional health equity coalitions, culturally specific and community-specific health programs and state and local public health programs that address prevention and cessation of tobacco and nicotine use by youth and adults, tobacco-related health disparities and the prevention and management of chronic disease related to tobacco and nicotine.

Resources


Official Summary

Source
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