Consumption and Excise Taxes

2009 Orientation

Excise Taxes

Tobacco

Alcoholic Beverages

Telecommunications

Fuel and Weight Mile

Transient Lodging Tax

Tobacco Revenues

Cigarette Taxes

Other Tobacco Products Taxes

Master Settlement Agreement

Cigarette Tax Rate

0

20

40

60

80

100

120

140

1967 1971 1982 1986 1990 1994 1997 2002 2004 2008

Cen

ts p

er

Pack o

f 20

City

County

Transit

TURA

HP

GF

Measure 20 of 2002

Measure 44 of 1996

Measure 30 in 2004 Measure

50 in 2008

State Excise Tax Rates

0

50

100

150

200

250

300

Cents

Oregon # 22 @ $1.18

Per Pack as of January 1, 2008

Sales + Excise Taxes

0

50

100

150

200

250

300

Excise Sales

Oregon # 26 @ $1.18

Per Pack as of January 1, 2008

2007-08 Revenue

Health Plan69%

TURA3%

General Fund23%

Local5%

$222.2 Million

Distribution Proportions

(Percents)

Program

Tax Rate GF H Plan TURA Local

$0.58 Perm.

(ORS 323.030, 455)

37.931 46.546 5.173 10.35

$0.60 (2002) (ORS 323.031, 457)

97.900 0.700 1.400

Percent of Total 18.644 72.658 2.898 5.799

$0.10 Temp (Elapsed with Measure 30)

100.00

Percent (Elapsed with Measure 30)

17.187 74.794 2.672 5.346

Distribution Proportions

Total Tax$1.18

$0.58/pack (29 mills)

(ORS 323.030, 455)

$.60/pack (30 mills)

(ORS 323.031, 457)

29.37/30 to OHP

0.21/30 to TURA

89.65% to GF10.35%

city/county & Transit

0.14/30 three times

to locals

51.92% to OHP

5.77 to TURA

Cigarette Tax Revenue Forecast

0

50

100

150

200

250

300

350

400

450

500

2001-03 2003-05 2005-07 2007-09 2009-11 2011-13 2013-15

Mil

lion

s of

Dol

lars

TURA

Local

H. Plan

GF

$26.2

$13.1

$328.3

$87.5

$431.3

Measure 20 of 2002

Measure 30 of 2004

$390.4

Smoking Ban 1/12009

Taxed Distributions

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Mill

ion

Population Taxed Packs

Cigarettes Packs in Hundreds of Millions

Other Tobacco Products

0

10

20

30

40

50

60

70

1985 1997

Perc

en

t o

f W

ho

lesale

Pri

ce

TURAH. PlanGF

2001: Cigars limited to $0.50 each

Tax on Cigars

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Wholesale Price per Cigar

Tax p

er

Cig

ar

Tax

Limit

2007-08 OTP Revenue

Health Plan41.0%

Admin& T.F.2.5%

General Fund52.0%

TURA4.6%

$ 32.8 Million

Total Tobacco RevenueCigarettes and OTP

0

50

100

150

200

250

300

Mill

ion

s o

f D

olla

rs

GF H. Plan TURA Transit Local

Master Settlement Agreement

47 States Cigarette Manufacturers

4 Original Participating (96.4%) Subsequent Participating Non-Participating

Annual Payments in Perpetuity Subject to Adjustments

Estimated Payments

National Payments into Escrow

Period

Initial

Payment

Annual

Payment

Oregon’s

Approx Share

Strategic

Payment

Total

Oregon

…6/30/2002 8,824.4 12,493.4 171.1 171.1

2002 - 03 2,104.7 4,990.1 174.2 174.2

2003 – 07 6,121.9 70.3 per year

282.6

2007-17 6,642.4 72.5 per year

18.5

per year

823.9

2017 + 8,145.4 93.5

per year

93.5

per year

Millions of Dollars

Payments

Period Total Revenue

OMAP(03)/ OHP(05-)

OR. App. Bonds

OHSU Debt

Series 02&03

GF. Ins, Health and

Balance

..…6/30/2003 338. and 9.3 Interest/invest

211.8 125.2

Balan-10.2-

2003 – 05

Biennium

155.4 43.0 41.7 9.65 Balan-61.2-

2005-07

Biennium

137.43 0.9 86.4 31.9 0.7

Bal 70.6

2007-09

Biennium

181.3 75.4 31.9 0.9

Bal 106.8

2009 – 11

Biennium

181.1 20.0 139.02 31.9 1.1

95.7 Bal

2011 – 13

Biennium

184.85 144.64 31.9 1.2

102.74 Bal

2013 -15

Biennium

188.6 28.9 31.9 1.3

222.13 Bal

Millions of Dollars

Alcoholic BeveragesAlcoholic Beverages

Beer & Cider (Malt Beverages)Beer & Cider (Malt Beverages)

WineWine

Distilled SpiritsDistilled Spirits

BEER TAX RATESBEER TAX RATES

0

0.5

1

1.5

2

2.5

3

1933 1935 1975 1977

Year Rate Increased

$ P

er B

arre

l (3

1 G

allo

ns)

8.38 Cents /Gal

State Rates State Rates (Excise) (Excise) as of 1/1/08as of 1/1/08

0

0.2

0.4

0.6

0.8

1

1.2

Dollars per Gallon

Oregon # 45 to 48

@ $0.084

State Rates State Rates (Excise + Sales) (Excise + Sales) as of 1/1/08as of 1/1/08

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Dollars per Gallon

Oregon # 50 and 51

@ $0.084

2007-08 Beer Tax2007-08 Beer Tax

Mental Health 50%

Cities17%

Counties5%

General Fund28%

$7.3 Million Dollars

Beer Tax RevenueBeer Tax Revenue

0

1

2

3

4

5

6

7

8

Mental Health GF Local

Millions of Dollars

Wine Tax RatesWine Tax Rates

0.67

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

14% or Less 14% to 21%

Dollars per Gallon

State Wine Tax RatesState Wine Tax Rates

0

0.5

1

1.5

2

2.5

Oregon # 24 @ $0.67

Dollars per Gallonas of January-2008

State Wine & Sales Tax State Wine & Sales Tax RatesRates

0

0.5

1

1.5

22.5

3

3.5

4

4.5

5

Oregon # 47 @ $0.67

Dollars per Gallon as of January-2008

2007-08 Wine Tax 2007-08 Wine Tax RevenueRevenue

County5%

Mental Health49%

Wine Board3%

City16%

General Fund27%

$ 8.73 Million

Wine Tax RevenueWine Tax Revenue (History)(History)

0123456789

10

Table Desert

Millions of Dollars

OLCC Liquor Markup

0%

20%

40%

60%

80%

100%

120%

OLCC Sales

00.5

11.5

22.5

33.5

44.5

Cases Sales Population

Cases & Population in Millions, Sales in Hundreds of Millions

2007-08 OLCC Revenue

Privilege4%

License1%

Net Sales32%

Cost of GS48%

Oper. Exp.15%

$ 422.2 Million in Total Revenue

DISTRIBUTION FORMULA• Privilege Tax

• 2¢ of Wine Tax to Wine Board (1984)• Balance of Wine Tax + Beer Tax

• 50% to Mental Health• 50% included in OLCC Distribution

• OLCC Net Revenue• 56% to State General Fund• 10% to Counties by Population• 20% to Cities by Population• 14% to Cities by Formula (1977) (ORS 221.770)

2007-08 Total OLCC Revenue Distributions

Wine Board0.2%

Cities32.2%

Counties9.5%

Mental Health5.1%

General Fund53.1%

$155.8 Million Distributed

OLCC Distributions (Historically)

0

20

40

60

80

100

120

140

160

180

GF M. Health City County WB

Millions of Dollars

9-1-1 Emergency Access Tax9-1-1 Emergency Access Tax

1981: 3% of Access Charge1981: 3% of Access Charge 1991: 5% of Access Charge (Temp.)1991: 5% of Access Charge (Temp.) 1995: $0.75 per Month per circuit1995: $0.75 per Month per circuit

9-1-1 Revenue9-1-1 Revenue

39.43

0

5

10

15

20

25

30

35

40

Millions of Dollars

Fuel TaxesFuel Taxes

Gasoline Gasoline (any fuel the chief use of which (any fuel the chief use of which is for)is for) Propulsion of Motor Vehicle (24Propulsion of Motor Vehicle (24¢)¢) Propulsion of AircraftPropulsion of Aircraft

Piston (9Piston (9¢)¢) Jet (1Jet (1¢)¢)

Diesel, CNG, & etc. (used to)Diesel, CNG, & etc. (used to) Propel a Motor Vehicle (24¢)Propel a Motor Vehicle (24¢)

Weight-Mile Tax (vehicles > 26,000 pounds)Weight-Mile Tax (vehicles > 26,000 pounds) Flat FeesFlat Fees Road Use Assessment FeeRoad Use Assessment Fee

Motor Vehicle Fuel Tax Motor Vehicle Fuel Tax RatesRates

24

11.11

43.5

35.9

0

5

10

15

20

25

30

35

40

45

50

Nominal Real 2008 $$

Cen

ts p

er G

allo

n

Fuel Tax RevenueFuel Tax Revenue

72.7

345.9

401.6 398.4

0

50

100

150

200

250

300

350

400

450

Fiscal Year ending

Millions of Dollars

Weight-Mile TaxesWeight-Mile Taxes

Weight-Mile TaxesWeight-Mile Taxes

Table A: 26,000 to 80,000 PoundsTable A: 26,000 to 80,000 Pounds Graduated Based on WeightGraduated Based on Weight

$0.04 per Mile @ 26,000 Pounds$0.04 per Mile @ 26,000 Pounds $0.1316 per Mile @ 80,000 Pounds$0.1316 per Mile @ 80,000 Pounds

Table B: 80,000 to 105,500 PoundsTable B: 80,000 to 105,500 Pounds Graduated based on Weight and AxlesGraduated based on Weight and Axles

In Lieu In Lieu (Flat Fees)(Flat Fees) Log, Sand & Gravel, and Chip TrucksLog, Sand & Gravel, and Chip Trucks

Road Use Assessment FeeRoad Use Assessment Fee

Weight-Mile Tax RatesWeight-Mile Tax Rates Adjusted for Current Law changesAdjusted for Current Law changes

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Declared GVW (Starting LB)

5- Axles

6 Axles

7 Axles

8 Axles

9+ Axles

Cen

ts p

er M

ile

Declared Vehicle Weight

In Lieu TaxesIn Lieu Taxes

Flat FeesFlat Fees

Log Trucks $6.10 per Hundred WeightLog Trucks $6.10 per Hundred Weight Farm Trucks $5.00 per Hundred WeightFarm Trucks $5.00 per Hundred Weight Dump Trucks $6.05 per Hundred WeightDump Trucks $6.05 per Hundred Weight Chip Trucks $24.62 per Hundred WeightChip Trucks $24.62 per Hundred Weight

Road Use Assessment FeeRoad Use Assessment Fee 5.75.7¢ per ESAL* Mile¢ per ESAL* Mile

equivalent single-axle load” means the relationship between actual or equivalent single-axle load” means the relationship between actual or requested weight and an 18,000 pound single-axle load as determined by the requested weight and an 18,000 pound single-axle load as determined by the American Association of State Highway and Transportation Officials Road American Association of State Highway and Transportation Officials Road Tests reported at the Proceedings Conference of 1962. (ORS 818.225)Tests reported at the Proceedings Conference of 1962. (ORS 818.225)

Weight-Mile Tax Revenue Weight-Mile Tax Revenue (including FF &RUAF)(including FF &RUAF)

225.4

187.9

243

0

50

100

150

200

250

Fiscal Year Ending

Millions of Dollars

Transient Lodging TaxTransient Lodging Tax

• HB 2267 of the 2003 session• Imposes a state wide 1% tax on transient

Lodging• DOR administers, transfers net of collection cost

(max 2%) to Tourism commission• Fund State tourism marketing and regional

marketing program• Lodging providers collect and keep 5%. • Start January 1, 2004, and transmit quarterly• Limits new local taxes to tourism related taxes

(70%)

Transient Lodging TaxTransient Lodging Tax

Revenue Estimates in millions (at start time by LRO)

03-05 05-07 07-09

$16.46 $20.41 $22.51

First year 2004 actual were weak

$1.5 million, FY 2005 $8.4 million, FY 2006 $9.24 million, FY 2007 10.74, $19.98 BN (net).

FY 08 $11.84

Transient Lodging TaxTransient Lodging Tax

96.6

0102030405060708090

100

Million

Local Tax Receipts

Effective Tax Rate 7.7%