Tobacco Retail Licensing and Sales

OHA is aware of the Oregon Court of Appeals decision in Bates v. OHA (A180270). OHA disagrees with the decision and is analyzing its legal options. Note that ORS 431A.175(2)(f) remains in effect until the issuance of an appellate judgement. To learn more about the requirements and frequently asked questions, view the fact sheet and the FAQ sheet.

Oregon Tobacco Retail License Program

As of January 1, 2022, any business that wants to be authorized to sell tobacco, nicotine and vaping products in Oregon is required to get a Tobacco Retail License from the Department of Revenue. The licensing requirement is imposed on all retailers, including but not limited to:

Convenience stores
Bars
Hotels
Restaurants
Gas stations
Music venues

Retailers must be in a fixed and permanent location, and online sales of tobacco are prohibited. Violations of any tobacco retail law may result in civil penalties, license suspension or revocation. In addition, local jurisdictions may have their own restrictions on the sale of tobacco or vaping products.

This license was created to increase retailer knowledge and compliance of federal and state laws regulating the sale of tobacco and vaping products. In other states it has helped to reduce youth access to tobacco in the community. Tobacco retail licensing allows OHA to monitor local businesses and make stores healthier places for everyone to shop. This policy can also support other retail policies to address such concerns as youth access to tobacco, youth exposure to marketing, retailer location or density, retailer incompliance with federal or state laws.

The license does not apply to retailers operating on tribal lands.
Local jurisdictions that were already operating a license program may keep their local program. For information and links to local tobacco retail license programs, visit the Oregon Department of Revenue.

How the license works

The Department of Revenue reviews applications, issues tobacco retail licenses and collects the annual fee. See the section Applying for a tobacco retail license below for more information.

Retailers will pay an annual fee of $953 for a license.
Retailers with multiple locations will need to have a license for each location.
Anyone who sells tobacco or vaping products - including stores, cigar and hookah lounges, and bars - is considered a tobacco retailer and is required to purchase a license to continue selling tobacco or vaping products. The license does not apply to retailers operating on tribal lands.
The fees from tobacco retail licensing cover the cost of the program: stronger and more frequent enforcement, retailer education and support for local businesses – in addition to making sure businesses comply with the law.

Enforcing the law

Oregon Health Authority supports retailers and conducts compliance visits. There are real consequences for retailers that don't follow the law, such as civil penalties, up to suspending or revoking a retailer's ability to sell tobacco or vaping products for repeated violations.

Oregon Health Authority or Local Public Health Authority staff will conduct compliance visits.
Oregon Health Authority or Local Public Health Authority will continue to conduct two inspections, per retailer, per year: One inspection will make sure retailers aren’t selling to people under 21. The other will check for compliance with all tobacco retail sales laws.
Any business or person known to be selling tobacco or vaping products will be subject to inspection – whether they have a license or not.

Applying for a tobacco retail license

The Department of Revenue reviews applications and issues tobacco retail licenses. To apply for a tobacco retail license, visit the Department of Revenue and click on the link under " When and how do I apply for the license from the Department of Revenue?"

The annual fee for a license is $953, per location.