Current through Register Vol. 61, No. 4, April 1, 2022
Credit for tax paid will be allowed when
tobacco products are:
Shipped to a point
outside this state, pursuant to a contract of sale, and delivered by the seller
to such out-of-state point by means of:
The United States mail; or
common carrier licensed by the Federal Highway Administration; or
(C) Facilities operated by the seller.
(b) Sold to a foreign
purchaser for shipment abroad and delivered to a ship, airplane, or other
conveyance furnished by the purchaser for the purpose of carrying the tobacco
products abroad and actually carried to a foreign destination.
(c) Sold for use solely outside this state
and delivered to a forwarding agent, export packer, or other person engaged in
the business of preparing goods for export or arranging for their exportation,
and actually delivered to a port outside the continental limits of the United
(d) Sold for use as ship's
supplies which are to be consumed or resold on the high seas or in foreign
distributors claiming credit for tax on tobacco products on the ground that
shipments or deliveries were made in interstate commerce must certify, under
penalties for false swearing, the name and address of the persons receiving
such shipments or deliveries outside this state. Also, the Oregon distributors
must be in possession of delivery data of the following descriptions:
(a) A waybill, bill of lading or other
evidence of shipment issued by a common carrier in the case of shipments by
common carrier; or
insurance receipt or registry receipt issued by the United States Postal
(c) A copy of the
sellers invoice covering the sale, showing delivery by the seller at a
designated out-of-state address, and signed by the purchaser or the purchaser's
agent in the case of shipments by facilities operated by the seller. The
department reserves the right to require such additional proof as it deems
necessary in any particular case.
(3) Reports of such exempt sales must be
maintained as provided in ORS
323.510. The tax applies to the
transaction if the tobacco products are diverted in transit or for any other
reason are not actually delivered outside the state pursuant to the contract of
sale or are not shipped abroad to a foreign purchaser, regardless of
documentary evidence held by the distributor.
(4) Tobacco products are not considered to be
sold in interstate commerce and therefore are not exempt from tobacco tax if
the product is received by a purchaser or agent (other than a common carrier)
in this state.
(5) Failure to keep
any reports, waybills, bills of lading, or other documents required by this
rule is justification for the Department of Revenue to impose a tax on any
tobacco products claimed to be shipped out of Oregon and exempt under this
rule. Any tax imposed on these grounds will be cancelled upon actual proof to
the department that the reports, waybills, bills of lading or other documents
were in fact issued and the tobacco products were in fact shipped out of Oregon
and were exempt under this rule.
(6) Credit claimed as provided in this rule
will be in the form of a deduction on the next regularly scheduled quarterly
tobacco tax return. Whenever a tobacco distributor ceases operation as a
licensed tobacco distributor any credit accrued but not yet claimed may be
deducted on the final tax return. Refund of overpayments on a distributor's
tobacco tax account is allowed when an audit determines a net overpayment has
been made during the audit period. Refunds are also allowed if a distributor
determines a net overpayment has been made and claims the refund by filing an
amended tobacco tax return for the period in which the overpayment occurred. No
refund is allowed after three years from the date of any overpayment.
Admin. R. 150-323-0410
RD 6-1985, f.
12-26-85, cert. ef. 12-31-85; RD 1-1986(Temp), f. & cert. ef. 4-25-86; RD
3-1986, f. & cert. ef. 7-2-86; REV 6-2000, f. & cert. ef. 8-3-00;
Renumbered from 150-323.560,
73-2016, f. 8-15-16, cert. ef.
Stat. Auth.: ORS
Stats. Implemented: ORS