Civil Penalties for Violation of Other Tobacco Products Tax

# (1)

(1) The Department of Revenue may impose civil penalties on any person who violates any provision of Other Tobacco tax law. The violations include, but are not limited to, those described under subsection (3) of this rule.

# (2)

(2) The following civil penalties will be imposed on a per incident basis for the violations in subsection (3) of this rule:

Incident — Penalty not to exceed

First — Warning notice

Second — $250

Third — $500

Fourth and subsequent — $1,000

# (3)

(3) The civil penalties outlined in subsection (2) of this rule may be imposed for the following violations of ORS 323.500 to 323.645:

(a) ORS 323.520: Failure by a distributor to apply for and obtain a distributor's license;

(b) ORS 323.530: Failure to display a license at the business location for which it was issued;

(c) ORS 323.538: Failure by distributor to provide a sales invoices containing the following:

(A) Name and address of the seller;

(B) Name and address of the purchaser;

(C) Quantity and product description of the tobacco products;

(D) Price paid for the tobacco products;

(E) Any discount applied in determining the price paid for the tobacco products;

(F) The applicable license identification number for the distributor;

(G) A certified statement by the distributor that all taxes due under ORS 323.500 to 323.645 have been or will be paid.

(d) ORS 323.540: Failure of distributors or any persons dealing in, transporting or storing tobacco products in this state to:

(A) Keep on premises records, receipts, and invoices of product held, purchased, manufactured, brought in or caused to be brought in from outside this state or shipped or transported to retail dealers in this state, and of all sales of tobacco products made , except to consumers; and

(B) Keep all books and records for the required five years after initial date of sale.

# (4)

(4) The department may consider the following factors when deciding the civil penalty under this rule:

(a) Number of previous inspections held by the Department of Revenue at the place of business;

(b) Number of previous violations of Chapter 323 provisions;

(c) Size of business; and

(d) Any other factors or information the department considers relevant to its determination.

# (5)

(5) A civil penalty authorized by ORS 323.630 and this rule may be imposed on any distributor, as defined in ORS 323.500(7), who is responsible for complying with ORS 323.500 to 323.645.