Measure 108 passage means businesses, customers will be paying increased tobacco taxes

With the approval of Measure 108 by Oregon voters last week, the state Department of Revenue is moving ahead with the implementation of increases in cigarette and tobacco taxes along with a new tax on inhalant delivery products.

As a result of the passage of the measure, the public will see the following changes beginning Jan. 1:

– The cigarette tax will increase by $2 per pack of 20 and $2.50 per pack of 25.

– Little cigars, collectively weighing less than three pounds per 1,000, will be taxed as cigarettes, will require an Oregon cigarette tax stamp, and must be sold in sealed packages of at least 20.

– Inhalant delivery systems, such as vaping and e-cigarette products, will be taxed at a rate of 65% of the wholesale purchase price.

– The cap on the tax on cigars increases from 50 cents to $1.

Revenue produced by the tax changes will be used by the Oregon Health Authority to fund healthcare coverage for low-income families, including mental health services, and public health programs, including programs addressing tobacco- and nicotine-related disease.

Revenue will hold a public hearing Nov. 24 on a series of administrative rules implementing the changes. 

Information about the hearing is available on the agency’s website, at

Tobacco distributors and retailers, inhalant delivery product and e-cigarette dealers, and the public can also find answers to a list of frequently asked questions on the website.

To stay updated on Oregon cigarette and tobacco tax law changes, interested parties can subscribe to email updates.

Those with questions can also call (503) 945-8120 or email [email protected].