Ind. Code § 6-7-4-1 "Closed system cartridge"
Sec. 1. As used in this chapter, "closed system cartridge" has the meaning set forth in IC 6-7-2-0.5.
As added by P.L.165-2021, SEC.119.
Ind. Code ch. 6-7-4
Ind. Code ch. 6-7-4
in effectInd. Code § 6-7-4-2 "Consumable material"
Sec. 2. As used in this chapter, "consumable material" means any liquid solution or other material used in an open system container that is depleted as the vapor product is used. The term does not include closed system cartridges (as defined in IC 6-7-2-0.5).
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-3 "Department"
Sec. 3. As used in this chapter, "department" means the department of state revenue and includes its employees and agents.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-4 "Gross retail income"
Sec. 4. As used in this chapter, "gross retail income" has the meaning set forth in IC 6-2.5-1-5.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-5 "Open system container"
Sec. 5. As used in this chapter, "open system container" means all containers of consumable material for intended use in a vapor product and for which the container is intended to be refillable. The term does not include closed system cartridges (as defined in IC 6-7-2-0.5).
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-6 "Person"
Sec. 6. As used in this chapter, "person" has the meaning set forth in IC 6-7-1-4.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-7 "Retail dealer"
Sec. 7. As used in this chapter, "retail dealer" means a person engaged in the selling of consumable material, vapor products, or both to ultimate consumers.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-8 "Vapor product"
Sec. 8. (a) Except as provided in subsection (b), as used in this chapter, "vapor product" means any of the following:
(1) A device, such as an electronic cigarette, that employs a mechanical heating element, battery, or electronic circuit, regardless of shape or size, that can be used to produce vapor from consumable material that may or may not be sold with the device.
(2) Any open system container of a consumable material in a solution or other form that is intended to be used with or in a device described in subdivision (1).
(b) The term "vapor product" does not include closed system cartridges (as defined in IC 6-7-2-0.5).
As added by P.L.165-2021, SEC.119. Amended by P.L.194-2023, SEC.29.
Ind. Code § 6-7-4-9 Rate of taxation; liability to remit tax
Sec. 9. (a) An excise tax, known as the electronic cigarette tax, is imposed on the retail sale of consumable material and vapor products in Indiana.
(b) The electronic cigarette tax equals thirty percent (30%) of the gross retail income received by the retail dealer for the sale.
(c) The person who acquires consumable material or vapor products in a retail transaction is liable for the tax on the transaction, and, except as otherwise incorporated in this chapter, shall pay the tax to the retail dealer as a separate added amount to the consideration in the transaction. A retail dealer that either:
(1) has a physical presence in Indiana, as described in IC 6-2.5-2-1(c); or
(2) meets the threshold in IC 6-2.5-2-1(d);
shall collect and remit the tax as an agent for the state.
(d) If the tax is not collected by the retail dealer, the consumer is responsible to remit the tax to the department. A retail dealer that is required to collect and remit tax under this chapter is jointly and severally liable for uncollected tax absent proof of exemption or payment by the purchaser.
(e) Before the fifteenth day of each month, each retail dealer liable for the collection and remittance of the 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) the name of the retail dealer;
(B) the address of the retail dealer; and
(C) the certificate number of the retail dealer's electronic cigarette retail dealer's certificate; and
(2) pay the tax for which it is liable under this chapter for the preceding month.
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.
(f) All of the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration apply to the imposition and administration of the tax imposed under this section, except to the extent such provisions are in conflict or inconsistent with the specific provisions of this chapter.
(g) A marketplace facilitator (as defined in IC 6-2.5-1-21.9) who is considered a retail merchant under IC 6-2.5-4-18 for a transaction to which this chapter applies shall collect and remit electronic cigarette taxes imposed on the retail transaction.
As added by P.L.165-2021, SEC.119. Amended by P.L.118-2024, SEC.17; P.L.213-2025, SEC.90.
Ind. Code § 6-7-4-10 Electronic cigarette retail dealer's certificate; application process; bond requirement
Sec. 10. (a) It is unlawful for any retail dealer to sell consumable material or vapor products in Indiana unless the retail dealer has a valid open system electronic cigarette retail dealer's certificate issued by the department.
(b) The department shall issue certificates to applicants that qualify under this section. A certificate issued under this section is valid for two (2) years unless revoked or suspended by the department and is not transferable. An open system electronic cigarette retail dealer's certificate may be revoked or suspended by the department in the same manner, for the same reasons, and is subject to the same procedures as for the revocation or suspension of a retail merchant's certificate under IC 6-2.5-8-7. If a retail dealer's retail merchant's certificate under IC 6-2.5-8 expires or is revoked by the department, an open system electronic cigarette retail dealer's certificate issued to the retail dealer under this subsection shall automatically be revoked without notice otherwise required under IC 6-2.5-8.
(c) An applicant for a certificate 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.
(d) To obtain or renew a certificate under this section, a person must:
(1) submit, for each location where it intends to distribute consumable material or vapor 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.
(e) If business is transacted at two (2) or more places by one (1) retail dealer, a separate certificate must be obtained for each place of business.
(f) Each certificate must be numbered, show the name and address of the retail dealer, and be posted in a conspicuous place at the place of business for which it is issued.
(g) If the department determines that a bond provided by a certificate is inadequate, the department may require a new bond in the amount necessary to fully protect the state.
As added by P.L.165-2021, SEC.119. Amended by P.L.194-2023, SEC.30; P.L.205-2025, SEC.20.
Ind. Code § 6-7-4-11 Selling consumable material or vapor products
Sec. 11. A retail dealer that sells consumable material or vapor products in Indiana without having obtained an electronic cigarette retail dealer's certificate, or after the retail dealer's certificate has been revoked or suspended by the department, commits a Class A misdemeanor.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-12 Liability for payment of taxes
Sec. 12. An individual who:
(1) is an individual retail dealer or an employee, an officer, or a member of a corporate or partnership retail dealer; and
(2) has a duty to remit electronic cigarette taxes to the department;
holds those taxes in trust for the state and is personally liable for the payment of those taxes, plus any penalties and interest attributable to those taxes, to the state. If the individual knowingly fails to collect or remit those taxes to the state, the individual commits a Level 6 felony.
As added by P.L.165-2021, SEC.119.
Ind. Code § 6-7-4-13 Revenue from the tax
Sec. 13. The revenue from the tax imposed by this chapter must be deposited according to the following:
(1) Sixty and eighty-one hundredths percent (60.81%) in the state general fund.
(2) Thirty-nine and nineteen hundredths percent (39.19%) in the state general fund for the purpose of paying appropriations for Medicaid—Current Obligations.
As added by P.L.165-2021, SEC.119. Amended by P.L.213-2025, SEC.91.
Ind. Code § 6-7-4-14 Rules
Sec. 14. The department may adopt rules under IC 4-22-2 necessary to enforce this chapter.
As added by P.L.165-2021, SEC.119. Amended by P.L.93-2024, SEC.56.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026