Ind. Code ch. 6-7-2

in effect

Ind. Code § 6-7-2-0.1 "Actual cost"; "actual cost list"

Sec. 0.1. As used in this chapter: (1) "actual cost" means the price paid by a remote seller for an individual taxable product; and (2) "actual cost list" means an annual list (prepared, maintained, and certified by each remote seller) of the cost of each individual taxable product. For purposes of this subdivision, the actual cost for each individual product in a cost list shall be the average of the actual price paid by a remote seller for the individual product over the twelve (12) calendar months prior to January 1 of the year in which the sale by the remote seller occurs. As added by P.L.137-2022, SEC.60.

Ind. Code § 6-7-2-0.2 "Alternative nicotine product"

Sec. 0.2. As used in this chapter, "alternative nicotine product" means a noncombustible product containing nicotine that is intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any means. The term does not include cigarettes (as defined in IC 6-7-1-2), tobacco products, closed system cartridges, consumable material, open system containers (as defined in IC 6-7-4-5), vapor products (as defined in IC 6-7-4-8), or any product regulated as a drug or device by the United States Food and Drug Administration under 21 U.S.C. 351 to 360fff-7. As added by P.L.137-2022, SEC.61.

Ind. Code § 6-7-2-0.3 "Cigar"

Sec. 0.3. As used in this chapter, "cigar" means a tobacco product that is a roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco that is a cigarette within the meaning of IC 6-7-1-2). The term includes tobacco products commonly known as "little cigars", which are cigars with an integrated cellulose acetate filter and that are wrapped in a substance containing tobacco. As added by P.L.137-2022, SEC.62.

Ind. Code § 6-7-2-0.5 "Closed system cartridge"

Sec. 0.5. As used in this chapter, "closed system cartridge" means a sealed, prefilled, and disposable container of consumable material in which the container is inserted directly into a vapor product, and is not intended to be opened or accessible through customary or reasonably foreseeable handling or use. As added by P.L.165-2021, SEC.101.

Ind. Code § 6-7-2-0.7 "Consumable material"

Sec. 0.7. As used in this chapter, "consumable material" means any liquid solution or other material used in a closed system container that is depleted as the vapor product is used. As added by P.L.165-2021, SEC.102.

Ind. Code § 6-7-2-1 "Department"

Sec. 1. As used in this chapter, "department" refers to the department of state revenue and includes its employees and agents. As added by P.L.96-1987, SEC.7.

Ind. Code § 6-7-2-2 "Distributor"

Sec. 2. As used in this chapter, "distributor" means a person who: (1) manufactures, sells, barters, exchanges, or distributes taxable products in Indiana to retail dealers for the purpose of resale; (2) purchases taxable products directly from a manufacturer of taxable products; or (3) purchases for resale taxable products from a wholesaler, jobber, or distributor outside of Indiana who is not a distributor holding a license issued under this chapter. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.103.

Ind. Code § 6-7-2-2.1 "Moist snuff"

Sec. 2.1. As used in this chapter, "moist snuff" means any finely cut, ground, or powdered tobacco that is not intended to be: (1) smoked; or (2) placed in the nasal cavity. As added by P.L.172-2011, SEC.81.

Ind. Code § 6-7-2-3 "Person"

Sec. 3. As used in this chapter, "person" has the meaning set forth in IC 6-7-1-4. As added by P.L.96-1987, SEC.7.

Ind. Code § 6-7-2-3.1 "Pipe tobacco"

Sec. 3.1. As used in this chapter, "pipe tobacco" means a tobacco product that, because of its appearance, type, packaging, or labeling, is suitable and likely to be smoked in a pipe. As added by P.L.137-2022, SEC.63.

Ind. Code § 6-7-2-3.3 "Remote seller"

Sec. 3.3. As used in this chapter, "remote seller" means a retail dealer that meets the economic threshold under IC 6-2.5-2-1(d) and sells taxable products to an ultimate consumer under either of the following circumstances: (1) By means of a telephone or other method of voice transmission, the mail, or the Internet or other electronic service. (2) When the taxable products are delivered to the consumer by common carrier, private delivery service, or other method of delivery. As added by P.L.137-2022, SEC.64. Amended by P.L.118-2024, SEC.14.

Ind. Code § 6-7-2-3.5 "Taxable product"

Sec. 3.5. As used in this chapter, "taxable product" means tobacco products, alternative nicotine products, or closed system cartridges, or any combination thereof. As added by P.L.165-2021, SEC.104. Amended by P.L.137-2022, SEC.65.

Ind. Code § 6-7-2-4 "Retail dealer"

Sec. 4. As used in this chapter, "retail dealer" means a person engaged in the business of selling taxable products to ultimate consumers, including a retail merchant that meets the economic threshold under IC 6-2.5-2-1(d). As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.105; P.L.137-2022, SEC.66; P.L.118-2024, SEC.15.

Ind. Code § 6-7-2-5 "Tobacco product"

Sec. 5. (a) As used in this chapter, "tobacco product" means any product containing, made, or derived from tobacco that is intended for human consumption, or is likely to be consumed, whether chewed, smoked, heated, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product. (b) The term includes, but is not limited to: (1) cigars; (2) pipe tobacco; (3) chewing tobacco; (4) moist snuff; (5) snus; and (6) other similar kinds and forms of tobacco. (c) The term does not include: (1) cigarettes (as defined in IC 6-7-1-2); (2) closed system cartridges; (3) consumable material; (4) open system containers (as defined in IC 6-7-4-5); (5) vapor products (as defined in IC 6-7-4-8); (6) alternative nicotine products; or (7) any drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration and defined in the Federal Food, Drug, and Cosmetic Act. As added by P.L.96-1987, SEC.7. Amended by P.L.172-2011, SEC.82; P.L.137-2022, SEC.67.

Ind. Code § 6-7-2-5.5 "Vapor product"

Sec. 5.5. As used in this chapter, "vapor product" has the meaning set forth in IC 6-7-4-8. As added by P.L.165-2021, SEC.106.

Ind. Code § 6-7-2-6 "Wholesale price"

Sec. 6. As used in this chapter, "wholesale price" means the net price shown on an invoice and at which the manufacturer of the tobacco products sells tobacco products to distributors, excluding any discount or other reduction that is not shown on the invoice. As added by P.L.96-1987, SEC.7. Amended by P.L.155-2012, SEC.2.

Ind. Code § 6-7-2-7 Tax on distribution of tobacco products and alternative nicotine products; rate; time of imposition; findings by general assembly

Sec. 7. (a) A tax is imposed on the distribution of tobacco products in Indiana at the following rates: (1) Thirty percent (30%) of the wholesale price of tobacco products other than moist snuff. (2) For moist snuff, fifty cents ($0.50) per ounce, and a proportionate tax at the same rate on all fractional parts of an ounce. If the tax calculated for a fractional part of an ounce carried to the third decimal place results in the numeral in the third decimal place being greater than four (4), the amount of the tax shall be rounded to the next additional cent. (3) For cigars, thirty percent (30%) of the wholesale price of a cigar. However the tax imposed per cigar shall not exceed three dollars ($3). (b) A tax is imposed on the distribution of alternative nicotine products in Indiana at a rate of fifty cents ($0.50) per ounce, and a proportionate tax at the same rate on all fractional parts of an ounce, calculated based upon the product weight as listed by the manufacturer. If the tax calculated for a fractional part of an ounce carried to the third decimal place being greater than four (4), the amount of the tax shall be rounded to the next additional cent. (c) The distributor of the tobacco products or alternative nicotine products is liable for the tax imposed under subsection (a) or (b). The tax is imposed at the time the distributor: (1) brings or causes tobacco products or alternative nicotine products to be brought into Indiana for distribution; (2) manufactures tobacco products or alternative nicotine products in Indiana for distribution; (3) transports tobacco products or alternative nicotine products to retail dealers in Indiana for resale by those retail dealers; or (4) first receives the tobacco products or alternative nicotine products in Indiana in the case of distributor to distributor transactions. (d) The Indiana general assembly finds that the tax rate on smokeless tobacco should reflect the relative risk between such products and cigarettes. (e) A consumer who purchases untaxed tobacco products or alternative nicotine products from a distributor or retailer is liable for the tax imposed under subsection (a) or (b). As added by P.L.96-1987, SEC.7. Amended by P.L.192-2002(ss), SEC.138; P.L.234-2007, SEC.201; P.L.172-2011, SEC.83; P.L.205-2013, SEC.129; P.L.165-2021, SEC.107; P.L.137-2022, SEC.68; P.L.236-2023, SEC.91; P.L.205-2025, SEC.15; P.L.213-2025, SEC.87; P.L.23-2026, SEC.42.

Ind. Code § 6-7-2-7.5 Tax on distribution of closed system cartridges; rate; time of imposition

Sec. 7.5. (a) A tax is imposed on the distribution of closed system cartridges in Indiana at the rate of thirty percent (30%) of the wholesale price of the closed system cartridge. If a closed system cartridge is sold in the same package as a vapor product device, the tax imposed under this subsection shall only apply to the wholesale price of the closed system cartridge if the wholesale cost of the closed system cartridge can be isolated from the vapor product device on the invoice. (b) The distributor of closed system cartridges, including a person that sells closed system cartridges through a website, is liable for the tax imposed under subsection (a). The tax is imposed at the time the distributor: (1) brings or causes closed system cartridges to be brought into Indiana for distribution; (2) manufactures closed system cartridges in Indiana for distribution; (3) transports closed system cartridges to retail dealers in Indiana for resale by those retail dealers; or (4) first receives the closed system cartridges in Indiana in the case of distributor to distributor transactions. (c) A consumer who purchases untaxed closed system cartridges from a distributor or retailer is liable for the tax imposed under subsection (a). As added by P.L.165-2021, SEC.108. Amended by P.L.137-2022, SEC.69; P.L.1-2025, SEC.99; P.L.205-2025, SEC.16; P.L.213-2025, SEC.88; P.L.23-2026, SEC.43.

Ind. Code § 6-7-2-7.7 Sale of taxable products in Indiana by remote sellers

Sec. 7.7. (a) The tax imposed under sections 7(a)(1), 7(b), and 7.5(a) of this chapter shall also be imposed on the sale of taxable products in Indiana by remote sellers, and shall be calculated based on one (1) of the following methods: (1) For remote sellers using an actual cost method, the tax shall be calculated by applying the rate to the actual cost of each individual product. (2) For remote sellers using an actual cost list method, the tax shall be calculated by applying the rate to the cost established for each individual product in the remote seller's actual cost list. (b) The remote seller of taxable products is liable for the tax imposed under section 7(a)(1), 7(b), or 7.5(a) of this chapter. (c) The tax under this section shall be imposed at the time of purchase by an ultimate consumer. As added by P.L.137-2022, SEC.70.

Ind. Code § 6-7-2-8 Distributor's license

Sec. 8. (a) A distributor, including a person that sells taxable products through a website, must obtain a license under this section before it distributes taxable products in Indiana. The department shall issue licenses to applicants that qualify under this section. A license issued under this section is valid for two (2) years unless revoked or suspended by the department and is not transferable. (b) An applicant for a license under this section must submit proof to the department of the appointment of an agent for service of process in Indiana if the applicant is: (1) an individual whose principal place of residence is outside Indiana; or (2) a person, other than an individual, that has its principal place of business outside Indiana. (c) To obtain or renew a license under this section, a person must: (1) submit, for each location where it intends to distribute taxable products, an application that includes all information required by the department; (2) pay a fee of twenty-five dollars ($25) at the time of application; and (3) at the time of application, post a bond, issued by a surety company approved by the department, in an amount not less than one thousand dollars ($1,000) and conditioned on the applicant's compliance with this chapter. (d) If business is transacted at two (2) or more places by one (1) distributor, a separate license must be obtained for each place of business. (e) Each license must be numbered, show the name and address of the distributor, and be posted in a conspicuous place at the place of business for which it is issued. (f) If the department determines that a bond provided by a licensee is inadequate, the department may require a new bond in the amount necessary to fully protect the state. (g) A distributor issued a license under this section is prohibited from selling, using, or distributing flavored nitrous oxide. If a distributor violates this subsection, the department may suspend or revoke the distributor's license and impose sanctions on the distributor in an amount equal to the cost of disposing of the flavored nitrous oxide. As added by P.L.96-1987, SEC.7. Amended by P.L.205-2013, SEC.130; P.L.165-2021, SEC.109; P.L.1-2025, SEC.100; P.L.163-2025, SEC.3; P.L.205-2025, SEC.17.

Ind. Code § 6-7-2-8.5 Remote seller distributor's license; application requirements; calculation of the tax; bond requirement

Sec. 8.5. (a) A remote seller, including a person that sells taxable products through a website, must obtain a license under this section before a remote seller can sell taxable products in Indiana. The department shall issue licenses to applicants that qualify under this section. A license issued under this section is valid for two (2) years unless revoked or suspended by the department and is not transferable. (b) An applicant for a license under this section must submit proof to the department of the appointment of an agent for service of process in Indiana if the applicant is: (1) an individual whose principal place of residence is outside Indiana; or (2) a person, other than an individual, that has its principal place of business outside Indiana. (c) To obtain or renew a license under this section, a person must: (1) submit an application that includes all information required by the department; (2) meet the economic threshold under IC 6-2.5-2-1(d) and obtain a registered retail merchant certificate; (3) attest that the person uses third party age verification technology as described in subsection (d); (4) pay a fee of twenty-five dollars ($25) at the time of application; and (5) at the time of application, post a bond, issued by a surety company approved by the department, in an amount not less than one thousand dollars ($1,000) and conditioned on the applicant's compliance with this chapter. (d) A remote seller must use age verification through an independent, third party age verification service that compares: (1) information available from a commercially available data base (or aggregate of data bases) that are regularly used by government agencies and businesses for the purpose of age and identity verification; and (2) personal information entered by the individual during the ordering process; that establishes that the individual is of the required minimum age. (e) A remote seller that collects the tax imposed under section 7.7 of this chapter using the actual cost list method to calculate the tax must provide to the department a certified actual cost list for each individual product offered for sale in the subsequent calendar year. The actual cost list shall be updated annually as new products are added to a remote seller's inventory. New products must be added to the actual cost list using the actual cost first paid for each individual product. (f) If a business owns multiple entities that qualify as a remote seller, a separate license must be obtained for each remote seller. (g) Each license must be numbered, show the name and address of the remote seller, and be kept at the place of business for which it is issued. (h) If the department determines that a bond provided by a licensee is inadequate, the department may require a new bond in the amount necessary to fully protect the state. (i) A license issued under this section does not permit the remote seller to sell cigarettes, vapor products, or other products subject to tax under IC 6-7-1 or IC 6-7-4. As added by P.L.137-2022, SEC.71. Amended by P.L.118-2024, SEC.16; P.L.205-2025, SEC.18.

Ind. Code § 6-7-2-9 Change of location; license reissuance

Sec. 9. A distributor or remote seller that changes its place of business shall return its license, and the department shall issue, free of charge, a new license for the new place of business. As added by P.L.96-1987, SEC.7. Amended by P.L.137-2022, SEC.72.

Ind. Code § 6-7-2-10 Surrender of license; refund

Sec. 10. A license issued under this chapter may be surrendered to the department at any time before its expiration, and the department shall refund an amount of money that bears the same proportion to the fee originally paid as the unexpired period of the permit bears to two (2) years. No refund may be allowed if a license is suspended or revoked. As added by P.L.96-1987, SEC.7. Amended by P.L.137-2022, SEC.73; P.L.205-2025, SEC.19.

Ind. Code § 6-7-2-11 Revocation or suspension of license

Sec. 11. The department: (1) may revoke or suspend a license issued under this chapter for any violation of this chapter, IC 6-7-1-18, or IC 24-3-5.4-17 by the licensee; and (2) may not issue a license under this chapter to an applicant within six (6) months after the revocation of that applicant's license. As added by P.L.96-1987, SEC.7. Amended by P.L.252-2003, SEC.3; P.L.137-2022, SEC.74.

Ind. Code § 6-7-2-11.5 Department may refuse to issue or renew a license; reasons

Sec. 11.5. (a) The department may refuse to issue or renew a license issued under this chapter if: (1) the application is filed by a person whose license has previously been canceled for cause (including a similar license issued by another state); (2) the application is not filed in good faith, as determined by the department; (3) the application is filed by a person as a subterfuge for the real person in interest whose license has previously been canceled for cause; (4) the applicant has been convicted of fraud, misrepresentation, or any other offense that indicates the applicant may not comply with this chapter if issued a license; (5) the applicant has an outstanding listed tax liability; or (6) the applicant has not complied with a filing requirement of the department. (b) Before being denied a license as a distributor, the applicant is entitled to a hearing with five (5) days written notice. At the hearing the applicant may appear in person or by counsel and present testimony. As added by P.L.137-2022, SEC.75.

Ind. Code § 6-7-2-12 Electronic filing of returns and remitting of taxes

Sec. 12. Before the fifteenth day of each month, each distributor (and remote seller beginning July 1, 2023) liable for a tax imposed by this chapter shall: (1) file a return with the department that includes all information required by the department including, but not limited to: (A) name of distributor (or remote seller beginning July 1, 2023); (B) address of distributor (or remote seller beginning July 1, 2023); (C) license number of distributor (or remote seller beginning July 1, 2023); (D) invoice date; (E) invoice number; (F) name and address of person from whom taxable products were purchased or name and address of person to whom taxable products were sold (except in the case of sales to an end consumer beginning July 1, 2023); (G) the wholesale price for tobacco products other than moist snuff and cigars (or the actual cost in the case of remote sellers beginning July 1, 2023); (H) for moist snuff, the weight of the moist snuff; (I) for cigars, the wholesale price of the cigars; (J) for alternative nicotine products, the weight of the alternative nicotine products; and (K) for closed system cartridges, the wholesale price of closed system cartridges sold; and (2) pay the taxes for which it is liable under this chapter for the preceding month minus the amount specified in section 13 of this chapter. All returns required to be filed and taxes required to be paid under this chapter must be made in an electronic format prescribed by the department. As added by P.L.96-1987, SEC.7. Amended by P.L.172-2011, SEC.84; P.L.166-2014, SEC.34; P.L.165-2021, SEC.110; P.L.137-2022, SEC.76.

Ind. Code § 6-7-2-13 Collection allowance

Sec. 13. A distributor or remote seller that files a complete return and pays the taxes due within the time specified in section 12 of this chapter is entitled to deduct and retain from the tax a collection allowance of seven-thousandths (0.007) of the amount due. If a distributor or remote seller files an incomplete report, the department may reduce the collection allowance by an amount that does not exceed the lesser of: (1) ten percent (10%) of the collection allowance; or (2) fifty dollars ($50). As added by P.L.96-1987, SEC.7. Amended by P.L.192-2002(ss), SEC.139; P.L.191-2016, SEC.7; P.L.165-2021, SEC.111; P.L.137-2022, SEC.77.

Ind. Code § 6-7-2-14 Credit or refund of taxes

Sec. 14. The department shall credit or refund to a distributor or remote seller the taxes paid under this chapter on taxable products that are: (1) shipped outside Indiana; (2) returned to the manufacturer; or (3) destroyed by the distributor in the presence of an employee or agent of the department. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.112; P.L.137-2022, SEC.78.

Ind. Code § 6-7-2-14.5 Deduction for certain receivables

Sec. 14.5. (a) In determining the amount of taxes imposed by this chapter that a distributor must remit under section 12 of this chapter, the distributor shall, subject to subsections (c) and (d), deduct from the distributor's wholesale income subject to the tax imposed by this chapter that is derived from wholesale transactions made during a particular reporting period an amount equal to the distributor's receivables that: (1) resulted from wholesale transactions on which the distributor has previously paid the taxes imposed by this chapter to the department; and (2) were written off as an uncollectible debt for federal tax purposes under Section 166 of the Internal Revenue Code during the particular reporting period. (b) If a distributor deducts a receivable under subsection (a) and subsequently collects all or part of that receivable, the distributor shall, subject to subsection (d)(5), include the amount collected as part of the distributor's wholesale income subject to the tax imposed by this chapter for the particular reporting period in which the distributor makes the collection. (c) As used in this subsection, "affiliated group" means any combination of the following: (1) An affiliated group within the meaning provided in Section 1504 of the Internal Revenue Code (except that the ownership percentage in Section 1504(a)(2) of the Internal Revenue Code shall be determined using fifty percent (50%) instead of eighty percent (80%)) or a relationship described in Section 267(b)(11) of the Internal Revenue Code. (2) Two (2) or more partnerships (as defined in IC 6-3-1-19), including limited liability companies and limited liability partnerships, that have the same degree of mutual ownership as an affiliated group described in subdivision (1), as determined under the rules adopted by the department. The right to a deduction under this section is not assignable to an individual or entity that is not part of the same affiliated group as the assignor. (d) The following provisions apply to a deduction for a receivable treated as uncollectible debt under subsection (a): (1) The deduction does not include interest. (2) The amount of the deduction shall be determined in the manner provided by Section 166 of the Internal Revenue Code for bad debts but shall be adjusted to exclude: (A) financing charges or interest; (B) uncollectible amounts on property that remain in the possession of the distributor until the full purchase price is paid; (C) expenses incurred in attempting to collect any debt; and (D) repossessed property. (3) The deduction shall be claimed on the return for the period during which the receivable is written off as uncollectible in the claimant's books and records and is eligible to be deducted for federal income tax purposes. For purposes of this subdivision, a claimant who is not required to file federal income tax returns may deduct an uncollectible receivable on a return filed for the period in which the receivable is written off as uncollectible in the claimant's books and records and would be eligible for a bad debt deduction for federal income tax purposes if the claimant were required to file a federal income tax return. (4) If the amount of uncollectible receivables claimed as a deduction by a distributor for a particular reporting period exceeds the amount of the distributor's taxable wholesale sales for that reporting period, the distributor may file a refund claim under IC 6-8.1-9. However, the deadline for the refund claim shall be measured from the due date of the return for the reporting period on which the deduction for the uncollectible receivables could first be claimed. (5) For purposes of reporting a payment received on a previously claimed uncollectible receivable, any payments made on a debt or account shall be applied first proportionally to the taxable wholesale price of the property and the part of the receivable attributable to the tax imposed by this chapter, and secondly to interest, service charges, and any other charges. As added by P.L.211-2007, SEC.38. Amended by P.L.165-2021, SEC.113.

Ind. Code § 6-7-2-15 Registration of manufacturer, importer, broker, or shipper distributing to distributor

Sec. 15. Every manufacturer, importer, broker, or shipper of taxable products must register with the department before it sells or otherwise distributes taxable products to distributors. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.114.

Ind. Code § 6-7-2-16 Manufacturer, importer, broker, or shipper; proof of distributions

Sec. 16. Every manufacturer, importer, broker, or shipper of taxable products that sells or otherwise distributes taxable products to distributors shall, before the fifteenth day of each month, submit proof to the department of all of its sales or other distributions to distributors in the preceding month. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.115.

Ind. Code § 6-7-2-17 Deposit of revenues

Sec. 17. The department shall deposit nineteen and forty-one hundredths percent (19.41%) of the taxes, registration fees, fines, or penalties collected under this chapter in the affordable housing and community development fund established by IC 5-20-4-7. The remainder of the taxes, registration fees, fines, or penalties collected under this chapter shall be deposited as provided in IC 6-7-1-28.1. As added by P.L.96-1987, SEC.7. Amended by P.L.234-2007, SEC.202; P.L.213-2025, SEC.89.

Ind. Code § 6-7-2-18 Distribution without a license; offense

Sec. 18. A person who distributes taxable products without a license issued under this chapter commits a Class B misdemeanor. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.116.

Ind. Code § 6-7-2-19 Manufacturer noncompliance; offense

Sec. 19. A manufacturer of taxable products who does not comply with the requirements of section 15 or 16 of this chapter commits a Class B misdemeanor. As added by P.L.96-1987, SEC.7. Amended by P.L.165-2021, SEC.117.

Ind. Code § 6-7-2-20 Record keeping violations

Sec. 20. A distributor or remote seller who does not comply with the requirements of IC 6-8.1-5-4 commits a Class B misdemeanor. As added by P.L.96-1987, SEC.7. Amended by P.L.137-2022, SEC.79.

Ind. Code § 6-7-2-21 Distributor or remote seller offenses

Sec. 21. (a) A distributor or remote seller who knowingly: (1) acts as a distributor or remote seller without a license; (2) makes a false statement in a report under this chapter; or (3) does not pay a tax for which the distributor or remote seller is liable under this chapter; commits a Class B misdemeanor. However, the offense is a Level 6 felony if it is committed with intent to evade the tax imposed by this chapter or to defraud the state. (b) Violations of this chapter described in subsection (a) may be reported to the department or the office of the attorney general. As added by P.L.96-1987, SEC.7. Amended by P.L.158-2013, SEC.103; P.L.165-2021, SEC.118; P.L.137-2022, SEC.80.

Ind. Code § 6-7-2-22 Listed tax

Sec. 22. The tax imposed under this chapter is a listed tax for purposes of IC 6-8.1. As added by P.L.96-1987, SEC.7.

Ind. Code § 6-7-2-23 Federal sales; exemption

Sec. 23. The sale of tobacco products to the United States or an agency or instrumentality thereof is exempt from the tobacco products tax. As added by P.L.96-1987, SEC.7.

Ind. Code § 6-7-2-24 Civil penalty for purchase of taxable products from a distributor that is not licensed

Sec. 24. A retailer (except a remote seller that is required to remit tax imposed by this chapter) who purchases a taxable product from a distributor who has not obtained a license required under section 8 of this chapter or whose license has been suspended or revoked by the department is subject to a penalty not to exceed the greater of: (1) one hundred percent (100%) of the retail value of the taxable product; or (2) five thousand dollars ($5,000); on the purchase. As added by P.L.137-2022, SEC.81.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026