CHAPTER 1. CIGARETTE TAX
IC 6-7
ARTICLE 7. TOBACCO TAXES
IC 6-7-1
Chapter 1. Cigarette Tax
IC 6-7-1-1
Purpose; liability for tax; separation of price and tax
Sec. 1. It is the intent and purpose of this chapter to levy a tax onall cigarettes sold, used, consumed, handled, or distributed withinthis state, and to collect the tax from the person who first sells, uses,consumes, handles, or distributes the cigarettes. It is further the intentand purpose of this chapter that whenever any cigarettes are given foradvertising or any purpose whatsoever, they shall be taxed in thesame manner as if they were sold, used, consumed, handled, ordistributed in this state. Notwithstanding any other provisionscontained in this chapter, the liability for the excise taxes imposed bythis chapter shall be conclusively presumed to be on the retailpurchaser or ultimate consumer, precollected for convenience andfacility only. When such taxes are paid by any other person, suchpayment shall be considered as an advance payment and shall beadded to the price of the cigarettes and recovered from the ultimateconsumer or user. Distributors, wholesalers, or retailers may state theamount of the tax separately from the price of such cigarettes on allprice display signs, sales or delivery slips, bills, and statementswhich advertise or indicate the price of such cigarettes.
(Formerly: Acts 1947, c.222, s.1; Acts 1963(ss), c.37, s.1.) Asamended by P.L.2-1988, SEC.20.
IC 6-7-1-2
"Cigarette" defined
Sec. 2. Unless the context requires otherwise, "cigarette" shallmean and include any roll for smoking made wholly or in part oftobacco, irrespective of size or shape and irrespective of tobaccobeing flavored, adulterated, or mixed with any other ingredient,where such roll has a wrapper or cover made of paper or any othermaterial. Provided the definition in this section shall not be construedto include cigars. Excepting where context clearly shows thatcigarettes alone are intended, the term "cigarettes" shall mean andinclude cigarettes, cigarette papers or wrappers, and tubes uponwhich a tax is imposed by sections 12 and 13 of this chapter.
(Formerly: Acts 1947, c.222, s.2.) As amended by P.L.2-1988,SEC.21.
IC 6-7-1-3
"Individual package" defined
Sec. 3. Unless the context requires otherwise, "individualpackage" shall mean and include every individual packet, box orother container used to contain or to convey cigarettes to theconsumer. It shall also mean and include books and sets of papers,
wrappers or tubes.
(Formerly: Acts 1947, c.222, s.3.) As amended by Acts 1980, P.L.60,SEC.1.
IC 6-7-1-4
"Person" or "company" defined
Sec. 4. Unless the context hereof requires otherwise, the term"person" or the term "company," herein used interchangeably, meansand includes any individual, assignee, receiver, commissioner,fiduciary, trustee, executor, administrator, institution, bank,consignee, firm, partnership, limited liability company, joint venture,pool, syndicate, bureau, association, cooperative association, society,club, fraternity, sorority, lodge, corporation, municipal corporationor any other political subdivision of the state engaged in private orproprietary activities or business, estate, trust, or any other group orcombination acting as a unit, and the plural as well as the singularnumber, unless the intention to give a more limited meaning isdisclosed by the context.
(Formerly: Acts 1947, c.222, s.4.) As amended by P.L.8-1993,SEC.101.
IC 6-7-1-5
"Department" defined
Sec. 5. Unless the context hereof requires otherwise, "department"shall mean the Indiana department of state revenue and its dulyauthorized assistants and employees.
(Formerly: Acts 1947, c.222, s.5; Acts 1963(ss), c.37, s.2.) Asamended by Acts 1980, P.L.61, SEC.12.
IC 6-7-1-6
"Distributor" defined
Sec. 6. Unless the context requires otherwise, "distributor" shallmean and include every person who sells, barters, exchanges, ordistributes cigarettes in the state of Indiana to retail dealers for thepurpose of resale, or who purchases cigarettes directly from amanufacturer of cigarettes, or who purchases for resale cigarettesdirectly from a manufacturer of cigarettes, or from a wholesaler,jobber, or distributor outside of the state of Indiana who is not adistributor holding a registration certificate issued under this chapter.
(Formerly: Acts 1947, c.222, s.6.) As amended by P.L.2-1988,SEC.22.
IC 6-7-1-7
"Retailer" defined
Sec. 7. Unless the context hereof requires otherwise, "retailer"shall mean every person, other than a distributor, who purchases,sells, offers for sale, or distributes cigarettes, to consumers or to anyperson for any purpose other than resale, irrespective of quantity oramount, or the number of sales.
(Formerly: Acts 1947, c.222, s.7.)
IC 6-7-1-8
"Consumption", "consumer", and "consume" defined
Sec. 8. Unless the context hereof requires otherwise,"consumption" shall mean the possession for use or the use of acigarette or cigarettes for the purpose of smoking the same; the term"consumer" shall mean the person so using the same; and the term"consume" shall mean so to use the same.
(Formerly: Acts 1947, c.222, s.8.)
IC 6-7-1-9
"Stamps" defined
Sec. 9. Unless the context requires otherwise, "stamps" shall meanthe stamps printed, manufactured, or made by authority of thedepartment, as provided in this chapter, and issued, sold, orcirculated by it and by the use of which the tax levied under thischapter is paid, or any impression, indicium, or character imprintedupon individual packages of cigarettes, cigarette papers, or tubes bya metered stamping machine or other device such as may beauthorized by the department for use by the holder of a certificateunder the provisions of this chapter and by the use of which the taxlevied under this chapter shall be paid.
(Formerly: Acts 1947, c.222, s.9.) As amended by P.L.2-1988,SEC.23.
IC 6-7-1-10
"Counterfeit stamp" defined
Sec. 10. Unless the context requires otherwise, "counterfeitstamp" shall mean any stamp, label, print, indicium, or characterwhich evidences, or purports to evidence the payment of any taxlevied by this chapter, and which stamp, label, print, indicium, orcharacter has not been printed, manufactured, or made by authorityof the department as provided in this chapter, and issued, sold, orcirculated by it.
(Formerly: Acts 1947, c.222, s.10.) As amended by P.L.2-1988,SEC.24.
IC 6-7-1-11
"Drop shipment" defined
Sec. 11. Unless the context hereof requires otherwise, "dropshipment" shall mean any shipment billed to one other than theperson receiving such shipment.
(Formerly: Acts 1947, c.222, s.10 1/2.)
IC 6-7-1-12
Rate of taxation
Sec. 12. (a) The following taxes are imposed, and shall becollected and paid as provided in this chapter, upon the sale,exchange, bartering, furnishing, giving away, or otherwise disposingof cigarettes within the state of Indiana:
(1) On cigarettes weighing not more than three (3) pounds per
thousand (1,000), a tax at the rate of four and nine hundredseventy-five thousandths cents ($0.04975) per individualcigarette.
(2) On cigarettes weighing more than three (3) pounds perthousand (1,000), a tax at the rate of six and six hundred twelvethousandths cents ($0.06612) per individual cigarette, exceptthat if any cigarettes weighing more than three (3) pounds perthousand (1,000) shall be more than six and one-half (6 1/2)inches in length, they shall be taxable at the rate provided insubdivision (1), counting each two and three-fourths (2 3/4)inches (or fraction thereof) as a separate cigarette.
(b) Upon all cigarette papers, wrappers, or tubes, made orprepared for the purpose of making cigarettes, which are sold,exchanged, bartered, given away, or otherwise disposed of within thestate of Indiana (other than to a manufacturer of cigarettes for use byhim in the manufacture of cigarettes), the following taxes areimposed, and shall be collected and paid as provided in this chapter:
(1) On fifty (50) papers or less, a tax of one-half cent ($0.005).
(2) On more than fifty (50) papers but not more than onehundred (100) papers, a tax of one cent ($0.01).
(3) On more than one hundred (100) papers, one-half cent($0.005) for each fifty (50) papers or fractional part thereof.
(4) On tubes, one cent ($0.01) for each fifty (50) tubes orfractional part thereof.
(Formerly: Acts 1947, c.222, s.11; Acts 1963(ss), c.37, s.3; Acts1965, c.225, s.1.) As amended by Acts 1977(ss), P.L.9, SEC.3;P.L.96-1987, SEC.2; P.L.192-2002(ss), SEC.135; P.L.218-2007,SEC.2.
IC 6-7-1-13
Effective date
Sec. 13. There is levied, assessed, and imposed, and shall becollected and paid as provided in this chapter, upon the use,consumption, or possession for use of cigarettes within the state ofIndiana, taxes at the rates set forth and in the manner provided insection 12 of this chapter. Provided, that the tax levied, assessed, andimposed by this section shall not be applicable to the use,consumption, or possession for use of cigarettes upon which the taxlevied, assessed, and imposed by the provisions of section 12 of thischapter has been paid.
(Formerly: Acts 1947, c.222, s.12.) As amended by P.L.2-1988,SEC.25.
IC 6-7-1-13.5
Carriers; liability for unpaid taxes
Sec. 13.5. A common carrier is liable for any unpaid taxesimposed under this chapter on:
(1) cigarettes, where the carrier takes possession of thecigarettes because they were damaged or they were not acceptedby the consignee, and where the carrier does not return the
cigarettes to the manufacturer; and
(2) cigarettes that are lost or stolen in transit.
As added by Acts 1980, P.L.60, SEC.2.
IC 6-7-1-14
Stamps; evidence of tax paid
Sec. 14. All taxes levied, assessed, and imposed by this chaptershall be paid and the payment thereof evidenced by the purchase ofstamps and by affixing the same to the individual packages, cigarettepapers, wrappers, and tubes and duly cancelling said stamps, asprovided in this chapter, but there shall be no further tax assessed,imposed, or collected by virtue of this chapter upon the sale or useof any package of cigarettes, cigarette papers, wrappers, or tubesupon which said stamps have been previously affixed as provided bythis chapter.
(Formerly: Acts 1947, c.222, s.13.) As amended by P.L.2-1988,SEC.26.
IC 6-7-1-15
Department as official agent of state to administer and enforcechapter; salaries and expenses; powers
Sec. 15. (a) The department is the official agent of the state for theadministration and enforcement of this chapter. A sufficient sum topay salaries and expenses is appropriated to the department out of themonies received by virtue of this chapter.
(b) The department may issue registration certificates, upon theterms and conditions provided in this chapter, and may revoke orsuspend the same upon the violation of this chapter by the holder ofsuch a certificate.
(c) The department may apply for membership in the NationalTobacco Tax Association.
(d) The department may design and have printed or manufacturedstamps of sizes and denominations to be affixed to each individualpackage. The stamps shall be firmly affixed on each individualpackage in such a manner that the stamps can not be removedwithout being mutilated or destroyed; however, the department mayby regulation designate some other manner for cancelation of stamps.In addition to the stamps, the department may by rules andregulations authorize distributors to use metered stamping machinesor other devices which will imprint distinctive indicia evidencing thepayment of the tax upon each individual package. The machines shallbe constructed in such a manner as will accurately record or meterthe number of impressions or tax stamps made. The tax metermachines or other devices shall be kept available at all reasonabletimes for inspection by the department, and the machines shall bemaintained in proper operating condition. A person who knowinglytampers with the printing or recording mechanism of such a machinecommits a Class B misdemeanor.
(Formerly: Acts 1947, c.222, s.14.) As amended by Acts 1978, P.L.2,SEC.644; Acts 1980, P.L.61, SEC.13.
IC 6-7-1-15.1
Metered tax stamping machines; recharging
Sec. 15.1. If at least one (1) financial institution in each countyapplies to the department and fulfills the bonding requirementsestablished by the department, the department shall approve at leastone (1) financial institution in each county to recharge the meteredstamping machines referred to in section 15 of this chapter.
As added by Acts 1979, P.L.81, SEC.1.
IC 6-7-1-16
Distributor's registration certificate; application fee; bond;refunds
Sec. 16. (a) Each distributor shall obtain from the department aregistration certificate. Application for a registration certificate shallbe made in writing upon forms prescribed by the department andshall be signed and verified by the distributor.
(b) The registration certificate shall be issued only upon paymentto the department of an annual fee of five hundred dollars ($500)which shall accompany the application for the registration certificate.In addition, a distributor must concurrently file a bond or a letter ofcredit:
(1) in a form and with a surety or financial institution approvedby the department;
(2) in the amount of one thousand dollars ($1,000);
(3) naming the state as obligee; and
(4) conditioned upon the payment of taxes, damages, fines,penalties, or costs adjudged against the holder of theregistration certificate by reason of the violation of any of theprovisions of this chapter.
(c) All registration certificates shall be personal, nontransferable,and valid for one (1) year from date of issuance unless revoked orsuspended for cause by the department.
(d) If business is transacted at two (2) or more places by one (1)distributor, a separate registration certificate shall be required foreach place of business where he operates as a distributor (as definedby section 6 of this chapter).
(e) Each certificate shall:
(1) be numbered;
(2) show the name and address of the distributor; and
(3) be posted in a conspicuous place at the place of business forwhich it is issued.
(f) Any person who changes his or her place of business shallreturn his or her certificate and the department shall issue a newcertificate for the new place of business free of charge.
(g) Any certificate issued under this section may be surrenderedto the department at any time prior to its expiration, and thedepartment shall refund an amount of money which bears the sameproportion to the fee originally paid therefor as the unexpired periodof the permit bears to one (1) year. However, no refund shall beallowed in the event that a certificate is revoked as provided in this
chapter, and no refund shall be made in excess of four hundreddollars ($400).
(Formerly: Acts 1947, c.222, s.15; Acts 1969, c.324, s.1.) Asamended by P.L.2-1988, SEC.27; P.L.49-1992, SEC.1.
IC 6-7-1-17
Distributors as agents of state for collection of tax; purchase ofrevenue stamps; execution of bond
Sec. 17. (a) Distributors who hold certificates and retailers shallbe agents of the state in the collection of the taxes imposed by thischapter and the amount of the tax levied, assessed, and imposed bythis chapter on cigarettes sold, exchanged, bartered, furnished, givenaway, or otherwise disposed of by distributors or to retailers.Distributors who hold certificates shall be agents of the departmentto affix the required stamps and shall be entitled to purchase thestamps from the department at a discount of one and two-tenths cents($0.012) per individual package of cigarettes as compensation fortheir labor and expense.
(b) The department may permit distributors who hold certificatesand who are admitted to do business in Indiana to pay for revenuestamps within thirty (30) days after the date of purchase. However,the privilege is extended upon the express condition that:
(1) except as provided in subsection (c), a bond or letter ofcredit satisfactory to the department, in an amount not less thanthe sales price of the stamps, is filed with the department;
(2) proof of payment is made of all property taxes, excise taxes,and listed taxes (as defined in IC 6-8.1-1-1) for which any suchdistributor may be liable; and
(3) payment for the revenue stamps must be made by electronicfunds transfer (as defined in IC 4-8.1-2-7).
The bond or letter of credit, conditioned to secure payment for thestamps, shall be executed by the distributor as principal and by acorporation duly authorized to engage in business as a suretycompany or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of goodcredit standing with the state, the distributor shall not be required topost a bond or letter of credit under subsection (b).
(Formerly: Acts 1947, c.222, s.16; Acts 1963(ss), c.37, s.4; Acts1965, c.225, s.7.) As amended by P.L.2-1988, SEC.28; P.L.49-1992,SEC.2; P.L.192-2002(ss), SEC.136; P.L.252-2003, SEC.1;P.L.211-2007, SEC.36; P.L.218-2007, SEC.3; P.L.131-2008,SEC.23.
IC 6-7-1-17.5
Credit against the cost of certain stamps
Sec. 17.5. (a) Except as otherwise provided in this section, indetermining the amount to pay for stamps purchased under thischapter, a distributor is entitled to a credit against the cost of stampspurchased in an amount equal to the distributor's receivables that:
(1) are attributable to stamps purchased by the distributor under
this chapter and affixed to cigarettes that were transferred to aretailer;
(2) resulted from a transfer of cigarettes to a retailer in whichthe distributor did not collect the tax imposed by this chapterfrom the retailer; and
(3) were written off as an uncollectible debt for federal taxpurposes under Section 166 of the Internal Revenue Code afterDecember 31, 2006.
(b) If a distributor claims a credit under subsection (a) andsubsequently collects all of the associated receivable, the distributorshall remit the entire amount of the credit previously claimed undersubsection (a) to the department within thirty (30) days of collection.
(c) If a distributor claims a credit under subsection (a) andsubsequently collects part of the associated receivable, the distributorshall remit the amount determined under STEP SIX of the followingformula to the department within thirty (30) days after collection:
STEP ONE: Determine the part of the associated receivablebefore collection that is attributable to the taxable price of theproducts subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivablebefore collection that is attributable to the amount paid by thedistributor for the stamps affixed to the products that weretransferred to the retailer.
STEP THREE: Determine the sum of:
(A) the STEP ONE result; plus
(B) the STEP TWO result.
STEP FOUR: Determine the lesser of:
(A) the amount collected; or
(B) the STEP THREE result.
STEP FIVE: Divide:
(A) the STEP TWO result; by
(B) the STEP THREE result.
STEP SIX: Multiply:
(A) the STEP FOUR result; by
(B) the STEP FIVE result.
(d) If the amount of the credit to which a distributor is entitledunder subsection (a) exceeds the cost of the stamps that thedistributor seeks to purchase, the remainder of the credit may beapplied to future purchases of stamps by the distributor. For anyuncollectible receivable used to establish a credit under subsection(a), the amount of the credit that is available to be applied to apurchase of stamps is the total amount of the credit determined undersubsection (a) reduced by the sum of partial credits applied by thedistributor to previous purchases of stamps.
(e) As used in this subsection, "affiliated group" means anycombination of the following:
(1) An affiliated group within the meaning provided in Section1504 of the Internal Revenue Code (except that the ownershippercentage in Section 1504(a)(2) of the Internal Revenue Codeshall be determined using fifty percent (50%) instead of eighty
percent (80%)) or a relationship described in Section267(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 liabilitypartnerships, that have the same degree of mutual ownership asan affiliated group described in subdivision (1), as determinedunder the rules adopted by the department.
The right to a credit under this section is not assignable to anindividual or entity that is not part of the same affiliated group as theassignor.
As added by P.L.211-2007, SEC.37.
IC 6-7-1-18
Affixing stamps; invoices
Sec. 18. Every distributor, upon the receipt of cigarettes taxedunder this chapter, shall cause each individual package to have therequisite denomination and amount of stamps firmly affixed. Everyretailer, upon receipt of cigarettes not having the proper amount ofstamps firmly affixed, to each individual package, or stamped by ameter stamping machine, by a distributor shall stamp or firmly affixstamps immediately on each individual package. Provided, however,that any distributor engaged in interstate business, shall be permittedto set aside such part of his stock as may be necessary for theconduct of such interstate business without affixing the stampsrequired by this chapter. Every distributor, at the time of shipping ordelivering any cigarettes, shall make a duplicate invoice, showingcomplete details of each transaction, and shall retain the duplicatesubject to the inspection by the department or its agent. Everydistributor shall include with each shipment or delivery of cigarettesan invoice showing complete details of the transactions. Everyretailer shall retain for not less than two (2) weeks the invoiceincluded with each shipment or delivery of cigarettes subject toinspection by the department or its agent. A retailer may request aduplicate invoice from a distributor.
(Formerly: Acts 1947, c.222, s.17.) As amended by P.L.2-1988,SEC.29; P.L.252-2003, SEC.2.
IC 6-7-1-19
Distributors' records and reports
Sec. 19. (a) Every distributor of cigarettes shall keep and preservefor three (3) years records and invoices, showing the purchase andsale of all cigarettes. Such distributors shall also keep separateinvoices, and records of stamps purchased. All the aforementionedrecords, invoices, and stocks of cigarettes and unused stamps onhand shall be open to inspection by the department at all reasonabletimes. Provided, however, that all distributors, within fifteen (15)days after the first day of each month, shall file with the departmenta report of all drop shipment sales made by them to other distributorswithin this state during the preceding month, which report shall givethe name and address of the distributor, the kind and quantity of the
sales, and their dates of delivery. Provided, further, however, thatevery distributor engaged in interstate business shall, within ten (10)days after the first day of each month, file with the department areport of all such interstate sales made during the preceding month,which report shall give the name and address of the person to whomsold, the kind and quantity of the sales, and their dates of delivery.
(b) All drop shipments made by manufacturers of cigaretteswithin the state of Indiana must be shipped and billed through aregularly licensed distributor licensed by the state of Indiana (asdefined in section 6 of this chapter).
(Formerly: Acts 1947, c.222, s.18.) As amended by P.L.2-1988,SEC.30.
IC 6-7-1-19.5
Transporting cigarettes without stamps affixed; invoice or deliveryticket requirement; exceptions
Sec. 19.5. A person who transports cigarettes which do not bearan Indiana tax stamp over Indiana highways shall carry invoices ordelivery tickets for those cigarettes containing the followinginformation:
(1) the name and address of the consignor or seller;
(2) the name and address of the consignee or purchaser;
(3) the quantity and brands of the cigarettes; and
(4) the name and address of the person liable for the taximposed on those cigarettes under this chapter.
However, this section does not apply to licensed distributors, tocommon carriers, or to employees of the state or federal governmentwho are performing their official duties in the enforcement of thischapter.
As added by Acts 1980, P.L.60, SEC.3.
IC 6-7-1-20
Repealed
(Repealed by Acts 1978, P.L.2, SEC.656.)
IC 6-7-1-21
Selling packages with counterfeit stamps; affixing used stamps;offenses
Sec. 21. A distributor or other person who knowingly sells oroffers for sale an individual package, having affixed thereto anyfraudulent, spurious, imitation, or counterfeit stamp, or stamp whichhas been previously affixed, commits a Class C felony. A person whoknowingly affixes to an individual package either a fraudulent,spurious, imitation, or counterfeit stamp or a stamp which haspreviously been affixed to an individual package commits a Class Cfelony.
(Formerly: Acts 1947, c.222, s.20.) As amended by Acts 1978, P.L.2,SEC.645; Acts 1980, P.L.60, SEC.4.
IC 6-7-1-22 Record keeping violations; offense
Sec. 22. A person required by this chapter to keep records whorecklessly:
(1) fails to keep the record so required;
(2) falsifies the records; or
(3) fails to safely preserve the records for the period of three (3)years in such a manner as to insure permanency andaccessibility for inspection by the department;
commits a Class C misdemeanor.
(Formerly: Acts 1947, c.222, s.21.) As amended by Acts 1978, P.L.2,SEC.646.
IC 6-7-1-23
Other violations; offense
Sec. 23. A person who recklessly violates any provision of thischapter for which no other provision for punishment has been madecommits a Class B misdemeanor.
(Formerly: Acts 1947, c.222, s.22.) As amended by Acts 1978, P.L.2,SEC.647.
IC 6-7-1-24
Sale or possession of cigarettes without payment of tax or stampsaffixed; seizure; forfeiture; redemption penalty; offenses;exceptions
Sec. 24. (a) Whenever the department discovers any cigaretteswhich are subject to tax under this chapter and upon which the taxhas not been paid or the stamps affixed as required, it may seize andtake possession of the cigarettes together with any vending machineor receptacle in which they are held for sale. The seized cigarettes,vending machine, or receptacle, not including money contained inthe vending machine or receptacle, shall be forfeited to the state. Thedepartment may, within a reasonable time after the seizure:
(1) sell the forfeited cigarettes and vending machines orreceptacles at public auction, but the department shall requirethe purchaser to affix the proper amount of the stamps to thecigarettes upon delivery to the purchaser;
(2) permit the person from whom the cigarettes were seized toredeem the cigarettes and any vending machine or receptacleseized therewith, by the payment of the tax due together with apenalty of fifty percent (50%) and the costs incurred in theproceeding; or
(3) destroy the confiscated cigarettes and vending machine orreceptacle.
(b) The confiscation, destruction, sale, or redemption of cigarettesdoes not relieve any person of criminal penalties imposed forviolation of this chapter.
(c) Any person who sells or holds for sale any packages ofcigarettes not bearing Indiana tax stamps commits a Class Amisdemeanor. This subsection does not apply to distributors or toemployees of the department who are performing their official
duties.
(d) The possession of more than one thousand five hundred(1,500) cigarettes in packages not bearing Indiana tax stamps by anyperson other than a distributor, a common carrier, or an employee ofthe state or federal government performing his official duties in theenforcement of this chapter constitutes prima facie evidence that thecigarettes are possessed for the purpose of sale.
(e) A person who knowingly possesses more than twelve thousand(12,000) cigarettes not bearing Indiana tax stamps and who haspreviously been convicted of a misdemeanor for possession or saleof unstamped cigarettes commits a Class D felony.
(Formerly: Acts 1947, c.222, s.23; Acts 1969, c.324, s.2.) Asamended by Acts 1978, P.L.2, SEC.648; Acts 1980, P.L.60, SEC.5;P.L.71-1993, SEC.14.
IC 6-7-1-25
Search warrants for untaxed cigarettes
Sec. 25. When the department has reason to believe that anycigarettes are being kept, sold, offered for sale, or given away inviolation of this chapter, an officer of the department may makeaffidavit of such fact, describing the place or thing to be searchedbefore a court of competent jurisdiction, and the judge thereof shallissue a search warrant directed to the sheriff, constable, policeofficer, or authorized agent of the department commanding him tosearch any place or vehicle that may be designated in the affidavitand search warrant, and to seize any cigarettes so possessed and tohold the same, and to arrest the person in control or possession of thesame. If upon the return of the warrant it shall appear that cigaretteswere seized the same shall be sold according to law.
(Formerly: Acts 1947, c.222, s.24.) As amended by P.L.2-1988,SEC.31.
IC 6-7-1-26
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-7-1-27
Mutilated stamps; replacement; unused stamps; refund
Sec. 27. Where stamps or individual packages to which stampshave been affixed have become mutilated, or otherwise unfit for use,distributors shall notify the department, and, if an investigationdiscloses that said stamps have not evidenced a taxable transaction,replacement stamps shall be supplied to the distributor without cost.Any unused stamps may be returned to the department by thedistributor who purchased such stamps, and the department shall thenrefund to such distributor an amount equal to that paid therefor.
(Formerly: Acts 1947, c.222, s.26.)
IC 6-7-1-28
Repealed (Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-28.1
Taxes, registration fees, fines, and penalties collected; disposition
Sec. 28.1. The taxes, registration fees, fines, or penalties collectedunder this chapter shall be deposited in the following manner:
(1) Four and twenty-two hundredths percent (4.22%) of themoney shall be deposited in a fund to be known as the cigarettetax fund.
(2) Six-tenths percent (0.6%) of the money shall be depositedin a fund to be known as the mental health centers fund.
(3) Fifty-four and five-tenths percent (54.5%) of the moneyshall be deposited in the state general fund.
(4) Five and forty-three hundredths percent (5.43%) of themoney shall be deposited into the pension relief fundestablished in IC 5-10.3-11.
(5) Twenty-seven and five hundredths percent (27.05%) of themoney shall be deposited in the Indiana check-up plan trustfund established by IC 12-15-44.2-17.
(6) Two and forty-six hundredths percent (2.46%) of the moneyshall be deposited in the state general fund for the purpose ofpaying appropriations for Medicaid_Current Obligations, forprovider reimbursements.
(7) Five and seventy-four hundredths percent (5.74%) of themoney shall be deposited in the state retiree health benefit trustfund established by IC 5-10-8-8.5.
The money in the cigarette tax fund, the mental health centers fund,the Indiana check-up plan trust fund, or the pension relief fund at theend of a fiscal year does not revert to the state general fund.However, if in any fiscal year, the amount allocated to a fund undersubdivision (1) or (2) is less than the amount received in fiscal year1977, then that fund shall be credited with the difference between theamount allocated and the amount received in fiscal year 1977, andthe allocation for the fiscal year to the fund under subdivision (3)shall be reduced by the amount of that difference. Money depositedunder subdivisions (6) through (7) may not be used for any purposeother than the purpose stated in the subdivision.
As added by Acts 1977, P.L.89, SEC.1. Amended by Acts 1977(ss),P.L.9, SEC.4; Acts 1981, P.L.11, SEC.37; P.L.96-1987, SEC.3;P.L.18-1994, SEC.39; P.L.192-2002(ss), SEC.137; P.L.218-2007,SEC.4; P.L.3-2008, SEC.66; P.L.182-2009(ss), SEC.246.
IC 6-7-1-29
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-29.1
Cigarette tax fund; annual appropriation to department of naturalresources; use
Sec. 29.1. (a) One-sixth (1/6) of the money in the cigarette tax
fund is annually appropriated to the department of natural resources.
(b) The department shall use at least two percent (2%) but notmore than twenty-one percent (21%) of the money appropriated to itunder this section for:
(1) flood control and water resource projects, includingmultiple-purpose reservoirs; and
(2) applied research related to technical water resourceproblems.
The department may use the money to plan, design, acquire land for,or construct the projects.
(c) The department shall use at least thirty-six percent (36%) ofthe money appropriated to it under this section to construct,reconstruct, rehabilitate, or repair general conservation facilities orto acquire land.
(d) The department shall use at least forty-three percent (43%) ofthe money appropriated to the department under this section for soilconservation and lake and river enhancement under IC 14-32.
As added by Acts 1977, P.L.89, SEC.2. Amended by P.L.96-1987,SEC.4; P.L.70-1991, SEC.5; P.L.80-1993, SEC.6; P.L.1-1995,SEC.52; P.L.241-2005, SEC.1.
IC 6-7-1-29.3
Cigarette tax fund; deposit to clean water fund
Sec. 29.3. One-sixth (1/6) of the money in the cigarette tax fundshall be deposited in the clean water Indiana fund established byIC 14-32-8-6.
As added by P.L.241-2005, SEC.2.
IC 6-7-1-30
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-30.1
Cigarette tax fund; annual appropriation to local governmentalentities; allocation; disposition
Sec. 30.1. (a) Two-thirds (2/3) of the money in the cigarette taxfund is annually appropriated to the cities and towns of this state andto certain local governmental entities.
(b) The amount which is allocated to each city or town under thissection equals the product of:
(1) the total amount appropriated under subsection (a);multiplied by
(2) a fraction, the numerator of which is the population of thecity or town, and the denominator of which is the totalpopulation of all the cities and towns of Indiana.
(c) The auditor of state shall calculate and distribute the amountallocated to each city or town under this section on or before June 1and December 1 of each year. To make these semiannualdistributions, the auditor of state shall issue warrants drawn on thecigarette tax fund to the officials designated in subsection (d) or (e). (d) For a consolidated city, or a city or town which is located inthe same county as the consolidated city, the auditor of state shallissue a warrant for:
(1) three-fourteenths (3/14) of the money allocated to the cityor town under subsection (b) to the fiscal officer of the city ortown; and
(2) the remaining eleven-fourteenths (11/14) of the money tothe treasurer of that county.
The fiscal officer of the city or town shall deposit the moneydistributed to him under this subsection in the city's or town's generalfund. The county treasurer shall annually deposit three hundred fiftythousand dollars ($350,000) which he receives under this subsectionin the capital improvement bond fund of the county. The remainderof the money which the county treasurer receives under thissubsection is appropriated to the department of transportation of theconsolidated city. The county treasurer shall serve as custodian of themoney so appropriated to the department.
(e) For a city or town which is not located in the same county asa consolidated city, the auditor of state shall issue a warrant for thetotal amount allocated to the city or town under subsection (b) to thefiscal officer of the city or town. The fiscal officer shall depositthree-fourteenths (3/14) of the money in the city's or town's generalfund, and he shall deposit the remaining eleven-fourteenths (11/14)of the money in the city's or town's cumulative capital improvementfund.
As added by Acts 1977, P.L.89, SEC.3. Amended by Acts 1981,P.L.11, SEC.38; P.L.96-1987, SEC.5; P.L.2-1990, SEC.9.
IC 6-7-1-30.2
Appropriations for local health funds
Sec. 30.2. (a) There is annually appropriated to the statedepartment of health one hundred ninety thousand dollars ($190,000)from the state general fund for the purpose of providingsupplementary funding for the WIC (Women, Infants, and Children)program (42 U.S.C. 1786) in Indiana. The appropriation shall beadministered by the nutrition division of the state department ofhealth and shall be allocated to fund local WIC programs.
(b) There is annually appropriated to the state department ofhealth one hundred ninety thousand dollars ($190,000) from the stategeneral fund for the purpose of providing supplementary funding formaternal and child health services. The appropriation shall beadministered by the maternal and child health division of the statedepartment of health. The funds appropriated under this subsectionmust be used to:
(1) supplement federal Maternal and Child Health ServicesBlock Grant funds provided under 42 U.S.C. 701 et seq. for thepurpose of establishing and maintaining programs of pregnancycare in underserved areas of Indiana; and
(2) provide funding for the hospital and medical expensesconnected with the delivery of children whose parents are
eligible for services that may be reimbursed with fundsprovided under the federal Maternal and Child Health ServicesBlock Grant Program (42 U.S.C. 701 et seq.).
(c) There is annually transferred to the school age child careproject fund established under IC 12-17-12-7 from the state generalfund five hundred fifty thousand dollars ($550,000) for carrying outthe purposes of the school age child care project.
As added by P.L.96-1987, SEC.6. Amended by P.L.71-1988, SEC.1;P.L.20-1992, SEC.3; P.L.21-1992, SEC.2; P.L.1-1993, SEC.42;P.L.82-1993, SEC.1.
IC 6-7-1-30.5
Appropriations to local health maintenance fund
Sec. 30.5. (a) There is annually appropriated to the local healthmaintenance fund established by IC 16-46-10 two million fourhundred thirty thousand dollars ($2,430,000) from the state generalfund to provide funds for annual distribution to local boards of healthin accordance with IC 16-46-10-2 to enable local boards of health toprovide basic health services.
(b) The state department of health may retain annually amaximum of fifty thousand dollars ($50,000) of the totalappropriation to the local health maintenance fund under subsection(a) to pay administrative expenses incurred by the state departmentof health in distributing the funds to local health departments.
As added by P.L.82-1993, SEC.2. Amended by P.L.47-1994, SEC.1;P.L.224-2003, SEC.119.
IC 6-7-1-31
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-31.1
Cities and towns; cumulative capital improvement fund; use
Sec. 31.1. (a) The fiscal body of each city and the fiscal body ofeach town shall, by ordinance or resolution, establish a cumulativecapital improvement fund for the city or town. Except as otherwiseprovided in subsection (c), the city or town may only use money inits cumulative capital improvement fund:
(1) to purchase land, easements, or rights-of-way;
(2) to purchase buildings;
(3) to construct or improve city owned property;
(4) to design, develop, purchase, lease, upgrade, maintain, orrepair:
(A) computer hardware;
(B) computer software;
(C) wiring and computer networks; and
(D) communications access systems used to connect withcomputer networks or electronic gateways;
(5) to pay for the services of full-time or part-time computermaintenance employees; (6) to conduct nonrecurring in-service technology training ofunit employees;
(7) to undertake Internet application development;
(8) to retire general obligation bonds issued by the city or townfor one (1) of the purposes stated in subdivision (1), (2), (3),(4), (5), or (6); or
(9) for any other governmental purpose for which money isappropriated by the fiscal body of the city or town.
(b) The money in the city's or town's cumulative capitalimprovement fund does not revert to its general fund.
(c) A city or town may at any time, by ordinance or resolution,transfer to:
(1) its general fund; or
(2) an authority established under IC 36-7-23;
money derived under this chapter that has been deposited in the city'sor town's cumulative capital improvement fund.
As added by Acts 1977, P.L.89, SEC.4. Amended by P.L.8-1989,SEC.31; P.L.346-1989(ss), SEC.4; P.L.1-1990, SEC.83;P.L.140-2002, SEC.1; P.L.113-2010, SEC.69.
IC 6-7-1-32
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-32.1
Mental health centers fund; annual appropriation to division; useof money by division
Sec. 32.1. (a) The money in the mental health centers fund isannually appropriated to the division of mental health and addiction.
(b) The division may use the money:
(1) to pay the state's share of the cost of acquiring sites for,constructing, remodeling, equipping, or operating communitymental health centers; and
(2) to provide grants for a partial facility if there is a reasonableassurance that the facility will provide community mental healthservices within five (5) years after it provides any partialservice to the public.
As added by Acts 1977, P.L.89, SEC.5. Amended by P.L.28-1985,SEC.4; P.L.337-1989(ss), SEC.3; P.L.2-1992, SEC.71; P.L.40-1994,SEC.2; P.L.6-1995, SEC.2; P.L.215-2001, SEC.11.
IC 6-7-1-33
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-34
Repealed
(Repealed by Acts 1977, P.L.89, SEC.6.)
IC 6-7-1-35 Tax evasion; unlawful advertising
Sec. 35. It shall be unlawful to procure or induce the evasion ofany tax imposed by this chapter. It shall be unlawful for any personto advertise, print, publish, or circulate through or by use of anymedium of communication any advertisement or offer to sellcigarettes within or into the state of Indiana, in which it is stated orimplied that any taxes provided for in this chapter will not or neednot be paid.
(Formerly: Acts 1947, c.222, s.28.) As amended by P.L.2-1988,SEC.32.
IC 6-7-1-36
Evasion of tax; offense
Sec. 36. It is a Class C misdemeanor for a person to make anyfalse report or false statement in any report, with intent to defraud thestate or to evade the payment of the tax, or any part thereof, imposedby this chapter.
(Formerly: Acts 1947, c.222, s.28a; Acts 1969, c.324, s.3.) Asamended by Acts 1978, P.L.2, SEC.649.