OAR 150-323-0300: Civil Penalties for Violation of Cigarette Tax Stamping Provisions

(1) The Department of Revenue may assess a civil penalty against any person who is required to comply with ORS 323.005 to 323.482 and who: (a) Fails to prepay cigarette taxes by purchasing stamps from the department and affixing the stamps to unstamped packages of cigarettes prior to distributing those cigarettes, as required by ORS 323.068; or (b) Fails to affix an appropriate stamp to each package of cigarettes prior to distribution of the cigarettes, as required by ORS 323.160(3). (2) For purposes of ORS 323.480 and this rule, each pack of cigarettes distributed in violation of ORS 323.005 to 323.482 constitutes a separate violation and is subject to penalty as follows: (a) Incident—Penalty not to exceed—Minimum Penalty First—Warning notice Second—$10 per pack—$1,000 Third—$50 per pack—$1,000 Fourth—$100 per pack—$1,000 Fifth and subsequent—$1,000 per pack—$1,000 (b) Distributors will be assessed a minimum penalty of $1,000 for the second and any subsequent incidents. (3) The department may consider the following factors when determining the civil penalty under this rule: (a) Number of previous inspections by the Department of Revenue held at the business; (b) Number of previous violations of ORS chapter 323 provisions; (c) Frequency of violations and time since the last violation; (d) Size of business; and (e) Any other information the department considers relevant to its determination.