New Oregon Cigarette Tax Hits Record High, Smokers React

Oregon’s cigarette tax stands as the 7th highest nationwide. Smokers have been paying $3.33 per pack since January 2021. This is a big deal as it means that the national average of $1.93. Looking at cigarettes tax by state, Oregon’s tobacco tax proves to be a major money maker, bringing in about $511.2 million for the state in fiscal year 2023. But the financial picture gets complicated when you think over Oregon’s tobacco law and how it affects the economy.

The state pulls in good money from tobacco, but smoking takes a massive toll on Oregon. Healthcare costs linked to smoking drain $1.79 billion from the state each year, while lost work productivity adds up to $3.7 billion yearly. People often ask about cigarette costs in Oregon, but the real price goes way beyond what smokers pay at the store. Oregon’s relationship with tobacco keeps changing as these economic realities shape both state policies and how people choose to spend their money.

Smokers react to Oregon’s highest-ever cigarette tax

Oregon smokers feel the pinch as the oregon cigarette tax keeps hitting their wallets harder. The rising costs leave many residents with tough choices about their spending. Customers at local tobacco shops now buy single packs instead of cartons because they can’t handle the bigger upfront costs.

“I’ve smoked for 25 years, and these prices are pushing me to consider quitting,” says Portland resident James Chen, who spends about $300 monthly on cigarettes. “It’s becoming a luxury I can’t afford.”

Smokers look for ways to cut costs. Many Oregon smokers drive to neighboring states where cigarettes cost less, especially Idaho with its much lower tax rates. Some people try buying from cheapcartoncigarettes.com without paying tax, though this breaks oregon tobacco laws.

This shift affects more than just smokers’ budgets. Small stores near state borders see their sales drop as customers shop elsewhere. Health advocates see this reduced consumption as proof that the tax works as intended.

Oregon’s Department of Revenue knows it’s hard to enforce tobacco taxes when people cross state lines, but believes the health benefits matter more than enforcement challenges. The state and its smokers keep adapting to tobacco’s new economic reality in Oregon.

How Oregon’s tobacco tax compares to other states

Oregon’s cigarette tax shows striking differences when compared to its neighboring states. Washington tops the regional chart at $3.52 per pack, with Oregon following close behind at $3.33. Idaho’s tax sits at a mere $0.57 per pack, which creates a significant $2.76 price gap that drives many buyers across state lines.

New York holds the national record with $4.35 per pack, while Missouri charges just $0.17. Oregon ranks among the top ten states with highest cigarette taxes. These price differences explain why some people try to purchase cigarettes in Oregon through cheapcartoncigarettes.com without tax, though such purchases usually break Oregon’s tobacco laws.

State cigarette taxes show remarkable variations by region. Western states typically charge more than their southern counterparts, where tobacco cultivation has historical significance. California, right next door, sets its tax at $2.87 per pack – about $0.46 below Oregon’s rate.

Oregon residents pay between $8-$10 per pack at retail stores, depending on brand and location. These prices combine the state tax with the federal excise tax of $1.01 per pack, which makes Oregon cigarettes costlier than most other states.

Smokers adapt to rising costs and legal changes

Oregon’s cigarette tax increase has changed how people buy and use tobacco products. Oregonians bought 90 million fewer packs in 2022 compared to 2011. Sales dropped nearly 12% right after the tax increase and fell another 13% in 2022.

Many smokers now look for ways around Oregon’s pricey tobacco products. The Tax Foundation reports that more than a quarter of cigarettes Oregon residents smoke avoid local taxes. Richard Bird learned this the hard way when he got tax bills after trying to buy untaxed cigarettes from cheapcartoncigarettes.com, which violated Oregon’s tobacco law.

People have also switched to vaping, while Oregon takes a 65% wholesale tax on vaping equipment. About 6.9% of Oregon adults now use e-cigarettes.

These resources can help you quit smoking:

• The Oregon Tobacco Quit Line (1-800-QUIT-NOW), which offers free counseling and medication
• Text2Quit initiatives that send supportive messages
• Freedom From Smoking programs you can join online or in-person

Local businesses struggle with these changes. A store owner said tobacco makes up 35% of his business. Richard Burke from the 21+ Tobacco And Vapor Retail Association believes complete flavor bans would help “the black market” and give illicit sellers “a monopoly on vaping products”.

Conclusion

Oregon’s hefty cigarette tax serves as a major money maker and helps keep people from smoking. The state pulled in over $511 million in 2023, and cigarette sales took a big dive. The $3.33 per-pack tax ranks seventh highest in the country. But this is nowhere near enough to cover smoking’s real costs. Healthcare expenses and lost productivity add up to more than $5 billion each year.

Oregon’s smokers now face tough money choices as prices keep going up. Many have quit smoking completely or switched to vaping. Some look for cheaper options in other states. A few try to find tax-free cigarettes online, but that’s usually against state law. These changes explain why cigarette sales have dropped 25% since 2011.

The situation gets more complex with neighboring states. Washington’s prices are a bit higher, while Idaho sells cigarettes almost $3 cheaper per pack. Of course, this explains why so many people cross state lines to buy cigarettes. Small businesses feel the pinch especially hard as their tobacco sales keep falling.

The steep cigarette tax creates a clear tension between health goals and business reality. Health experts point to lower smoking rates as a big win. Yet smokers and small businesses still struggle to adapt to this new reality. Oregon’s future tobacco rules will need to balance money needs with public health goals, while keeping in mind the financial load on people who keep smoking despite the rising costs.

FAQs

Q1. What is the current cigarette tax rate in Oregon? Oregon’s cigarette tax rate is $3.33 per pack, which was implemented in January 2021. This rate places Oregon among the highest tobacco-taxing states in the nation.

Q2. How has the increased cigarette tax affected smoking habits in Oregon? The tax increase has led to a significant decline in cigarette sales. In 2022, Oregonians purchased 90 million fewer packs compared to 2011, with sales dropping nearly 12% the year after the tax increase and an additional 13% in 2022.

Q3. Are there alternatives for smokers looking to manage costs? Some smokers have turned to vaping, with 6.9% of Oregon adults now using e-cigarettes. Others seek cheaper options across state lines or attempt to purchase cigarettes online, though the latter often violates state law.

Q4. How does Oregon’s cigarette tax compare to neighboring states? Oregon’s $3.33 per pack tax is higher than most neighboring states. Washington has a slightly higher rate at $3.52, while Idaho’s tax is significantly lower at $0.57 per pack, creating a substantial price differential that motivates cross-border purchases.

Q5. What resources are available for Oregonians trying to quit smoking? Oregon offers several resources for those looking to quit, including the Oregon Tobacco Quit Line (1-800-QUIT-NOW) which provides free counseling and medication, Text2Quit initiatives offering supportive messages, and Freedom From Smoking programs available both online and in-person.