Credit: Illustration by Jess Ruliffson
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  • Illustration by Jess Ruliffson

In this week’s news section, I wrote about Multnomah County’s continuing struggle to get lawmakers in Salem to let the county levy its very own cigarette tax. Our little piece of Oregon, after all, was the only county in 2007 to say yes to hiking the current statewide tax, still just a humble $1.18 a pack.

Every little bit would help the county as it braces for tens of millions in budget cuts coming down from the state and federal governments this spring. And county officials would probably tie a portion of the revenue to public health programs—an easy But good luck getting that message through to lawmakers beholden to the “no tax” types as they close a $3.5 billion deficit, or to the political might and money of institutions like Philip Morris.

A few interesting tidbits, however, didn’t make the story. One was just how little the current cigarette tax earns Multnomah County: just about $700,000 a year. Most of the money goes to the Oregon Health Plan and the state’s bleeding general fund, with cities and counties left to fight over a combined $15.9 million. County officials don’t want to take money from the Health Plan, so that’s why they’re asking for a local tax that would only augment what we’re already getting.

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The other was a sense of how Oregon’s taxes on cigarettes (and spirits, beer, wine, and gasoline) compare nationally. According to this matrix of 2010 data, we’re in the middle, but on the low end. Interestingly, Washington state, since that chart was compiled, hiked its tax by a dollar, to north of $3. That means the Multnomah County tax would have to be almost twice what Oregon already levies before smokers would even consider wasting their gas on a trip over the Columbia for a better deal.

Denis C. Theriault is the Portland Mercury's News Editor. He writes stories about City Hall and the Portland Police Bureau, focusing on issues like homelessness, police oversight, insider politics, and...

3 replies on “Where Revenue from Oregon’s Cigarette Tax Goes”

  1. The current tax on cigarettes is more than generous. Regardless how one feels about smoking and smokers, attempting to tax a legal product out of existence is downright despicable. As long as the tax can account for the increased health care costs attributed by smoking, that’s all we need. Or are we supposed to encourage more people to smoke to squeeze out more revenue?
    Also, no amount of taxes are going to satiate the black debt hole that is engulfing states one by one.

  2. I also think that I was happy with the price Oregon placed on their ciggarettes. There are BILLIONS of people who have been smoking since they were 35 cents, and I think that with the MILLIONS who are smoking today, the stinginess and overabundance that go hand in hand with such mutual love and abhorrence need to be everywhere; meaning at OREGONS prices…..and the FL. $10.00 a carton tax law could and should be applied too.

  3. If the tax were not in neighboring Oregon counties people would not have to drive far to avoid the tax. Were I not a smoker I would write a scathing comment about regressive taxes targeting poor people, Cogen picking small groups to exploit for money everyone in the county should be paying, and so on. Since I am a stupid smoker I will just shut the fuck up with my self-serving opinion.

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