CHAPTER 3. CONTROLLED SUBSTANCE EXCISE TAX

IC 6-7-3
    Chapter 3. Controlled Substance Excise Tax

IC 6-7-3-1
"Controlled substance" defined
    Sec. 1. As used in this chapter, "controlled substance" has themeaning set forth in IC 35-48-1-9.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-2
"Delivery" defined
    Sec. 2. As used in this chapter, "delivery" has the meaning setforth in IC 35-48-1-11.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-3
"Department" defined
    Sec. 3. As used in this chapter, "department" refers to thedepartment of state revenue.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-4
"Manufacture" defined
    Sec. 4. As used in this chapter, "manufacture" has the meaning setforth in IC 35-48-1-18.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-4.1
"Marijuana" defined
    Sec. 4.1. As used in this chapter, "marijuana" has the meaning setforth in IC 35-48-1-19.
As added by P.L.65-1996, SEC.1.

IC 6-7-3-5
Imposition of tax; exemption
    Sec. 5. The controlled substance excise tax is imposed oncontrolled substances that are:
        (1) delivered;
        (2) possessed; or
        (3) manufactured;
in Indiana in violation of IC 35-48-4 or 21 U.S.C. 841 through 21U.S.C. 852. The tax does not apply to a controlled substance that isdistributed, manufactured, or dispensed by a person registered underIC 35-48-3.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-6
Amount of tax; determination by gram weight; substance inpossession
    Sec. 6. (a) The amount of the controlled substance excise tax is

determined by:
        (1) the weight of the controlled substance; or
        (2) the pill, capsule, hit, rock, or dosage when a controlledsubstance is delivered, possessed, or manufactured in that form.
    (b) The amount of controlled substance excise tax is as follows:
        (1) On each gram of a schedule I, II, or III controlled substance,except marijuana, forty dollars ($40) for each gram and aproportionate amount for each fraction of a gram.
        (2) On each gram of marijuana, three dollars and fifty cents($3.50) for each gram and a proportionate amount for eachfraction of a gram.
        (3) On each pill, capsule, hit, rock, or dosage of a schedule I, II,or III controlled substance, forty dollars ($40).
        (4) On each gram of a schedule IV controlled substance, twentydollars ($20) for each gram and a proportionate amount for eachfraction of a gram.
        (5) On each pill, capsule, hit, rock, or dosage of a schedule IVcontrolled substance, twenty dollars ($20).
        (6) On each gram of a schedule V controlled substance, tendollars ($10) for each gram and a proportionate amount for eachfraction of a gram.
        (7) On each pill, capsule, hit, rock, or dosage of a schedule Vcontrolled substance, ten dollars ($10).
    (c) A gram of a controlled substance is measured by the weight ofthe substance in possession whether pure, impure, or diluted. Aquantity of a controlled substance is diluted if the substance consistsof a detectable quantity of pure controlled substance and anyexcipient, fillers, or waste.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.2.

IC 6-7-3-7
Delivery of substance to law enforcement officer; tax liability
    Sec. 7. A person who delivers a controlled substance to a lawenforcement officer is not relieved of the duty to pay taxes under thischapter.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-8
Payment of tax due on violation of state or federal laws;nondisclosure of identity of taxpayer
    Sec. 8. The tax imposed under this chapter is due when the personreceives delivery of, takes possession of, or manufactures acontrolled substance in violation of IC 35-48-4 or 21 U.S.C. 841through 21 U.S.C. 852. A person may not be required to reveal theperson's identity at the time the tax is paid.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-9
Payment of tax not conferring criminal immunity; use ofconfidential information    Sec. 9. The payment of the tax under this chapter does not makethe buyer immune from criminal prosecution. However, confidentialinformation acquired by the department may not be used to initiateor facilitate prosecution for an offense other than an offense based ona violation of this chapter.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-10
Issuance of evidence of payment; statement; term of validity;possession of taxpayer
    Sec. 10. (a) The department shall issue evidence of payment of thetax to the person paying the tax. The evidence of payment mustinclude a statement stating the following:
        "THIS EVIDENCE OF PAYMENT DOES NOT LEGALIZETHE DELIVERY, SALE, POSSESSION, ORMANUFACTURE OF A CONTROLLED SUBSTANCE. THEUNAUTHORIZED DELIVERY, SALE, POSSESSION, ORMANUFACTURE OF A CONTROLLED SUBSTANCE IS ACRIME.".
    (b) The evidence of payment is valid for thirty (30) days after thepayment is received by the department. A person who receivesdelivery of, takes possession of, or manufactures a controlledsubstance must also have a valid evidence of payment in the person'spossession.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.3.

IC 6-7-3-11
Prohibited acts; failure or refusal to pay tax
    Sec. 11. A person may not deliver, possess, or manufacture acontrolled substance subject to the tax under this chapter unless thetax has been paid. A person who fails or refuses to pay the taximposed by this chapter is subject to a penalty of one hundredpercent (100%) of the tax in addition to the tax.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.4.

IC 6-7-3-12
Rules for enforcement of chapter; tax refund provisions
    Sec. 12. The department may adopt rules under IC 4-22-2necessary to enforce this chapter, including rules relating to therefunding of taxes paid under this chapter.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-13
Jeopardy assessment; duties of department
    Sec. 13. An assessment for the tax due under this chapter isconsidered a jeopardy assessment. The department shall demandimmediate payment and take action to collect the tax due as providedby IC 6-8.1-5-3.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-14
Jeopardy assessments; secondary lien to seizure and forfeitureprovisions
    Sec. 14. All jeopardy assessments issued for nonpayment of taxshall be considered a secondary lien to the seizure and forfeitureprovisions of IC 16-42-20, IC 34-24-1, IC 34-24-2, and any federallaw.
As added by P.L.50-1992, SEC.1. Amended by P.L.2-1993, SEC.60;P.L.1-1998, SEC.83; P.L.1-1999, SEC.17.

IC 6-7-3-15
Controlled substance tax fund; establishment; administration;expenses; interest; reversion to general fund; annual appropriation
    Sec. 15. (a) The controlled substance tax fund is established toreceive all the revenue collected by the department under thischapter.
    (b) The fund shall be administered by the treasurer of state. Anyexpenses incurred in administering the fund shall be paid from thefund. Any interest earned on money in the fund shall be credited tothe fund.
    (c) Any revenue remaining in the fund at the end of a state fiscalyear does not revert to the state general fund.
    (d) Money in the fund is annually appropriated to cover thedepartment's administrative and enforcement expenses under thischapter and to make the distributions required by this chapter.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-16
Controlled substance tax fund; awards and distributions;prohibited uses; transfers to state drug free communities fund;collections from assessments
    Sec. 16. (a) The department may award up to ten percent (10%)of the total amount collected from an assessment under this chapterto any person who provides information leading to the collection ofa tax liability imposed under this chapter. An award made under thissubsection must be made before any other distributions under thissection.
    (b) Whenever a law enforcement agency provides informationleading to the collection of a tax liability imposed under this chapter,the department shall award thirty percent (30%) of the total amountcollected from an assessment to the law enforcement agency thatprovided the information that resulted in the assessment. The lawenforcement agency shall use the money the agency receives underthis chapter to conduct criminal investigations. A law enforcementagency may not receive an award under more than one (1)subsection.
    (c) The department shall award ten percent (10%) of the amountdeposited in the fund during each month to the law enforcementtraining board to train law enforcement personnel.
    (d) The department may use twenty percent (20%) of the amount

deposited in the fund during a state fiscal year to pay the costs ofadministration and enforcement of this chapter.
    (e) Awards may not be made under this chapter to the following:
        (1) A law enforcement officer.
        (2) An employee of the department.
        (3) An employee of the Internal Revenue Service.
        (4) An employee of the federal Drug Enforcement Agency.
    (f) All the money deposited in the fund that is not needed forawards or to cover the costs of administration under this chapter shallbe transferred to the state drug free communities fund establishedunder IC 5-2-10.
    (g) An award made under subsection (a) or (b) shall be made onthe basis of collections from each individual assessment that resultedfrom information supplied to the department by a person or lawenforcement agency.
    (h) Money shall be considered collected under this section onlyafter all protest periods have expired or all appeals have beenadjudicated.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-17
Controlled substances tax fund; monthly distributions andtransfers; certification to state auditor; warrants
    Sec. 17. (a) All distributions and transfers from the controlledsubstance tax fund shall be paid monthly by the fifteenth of themonth following the month of collection.
    (b) The department shall certify to the auditor of state the amountto be distributed to each law enforcement agency that is entitled toreceive an award under section 16 of this chapter. The treasurer ofstate shall make the distributions upon warrants issued by the auditorof state.
As added by P.L.50-1992, SEC.1.

IC 6-7-3-18
Failure to pay as evidence in criminal sentencing order
    Sec. 18. When sentencing a defendant following a prosecution fordelivery, possession, or manufacture of a controlled substance inviolation of IC 35-48-4, the court may consider evidence of theaccused's failure to pay the excise tax required by this chapter. If thecourt finds that the defendant failed to pay the excise tax, the courtmay order the department to commence collection proceedings forthe tax and any penalties, as part of the court's sentencing order.
As added by P.L.65-1996, SEC.5.

IC 6-7-3-19
Conditions on commencement of collection proceedings
    Sec. 19. The department may not commence collectionproceedings under this chapter unless the department:
        (1) is ordered to do so by a court in the court's sentencing orderunder section 18 of this chapter; or        (2) is notified in writing by the prosecuting attorney of thejurisdiction where the offense occurred that the prosecutingattorney does not intend to pursue criminal charges of delivery,possession, or manufacture of the controlled substance that maybe subject to the tax required by this chapter.
As added by P.L.65-1996, SEC.6.

IC 6-7-3-20
Tax in addition to criminal penalties and forfeitures
    Sec. 20. The excise taxes required by this chapter are intended tobe in addition to any criminal penalties under IC 35-48-4 andforfeitures under IC 16-42-20, IC 34-24-1, or IC 34-24-2 (orIC 34-4-30.1 or IC 34-4-30.5 before their repeal).
As added by P.L.65-1996, SEC.7. Amended by P.L.1-1998, SEC.84.