Civil Penalties for Violation of Cigarette Tax Stamping Provisions

# (1)

(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)

(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)

(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.