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 on
all cigarettes sold, used, consumed, handled, or distributed within
this state, and to collect the tax from the person who first sells, uses,
consumes, handles, or distributes the cigarettes. It is further the intent
and purpose of this chapter that whenever any cigarettes are given for
advertising or any purpose whatsoever, they shall be taxed in the
same manner as if they were sold, used, consumed, handled, or
distributed in this state. Notwithstanding any other provisions
contained in this chapter, the liability for the excise taxes imposed by
this chapter shall be conclusively presumed to be on the retail
purchaser or ultimate consumer, precollected for convenience and
facility only. When such taxes are paid by any other person, such
payment shall be considered as an advance payment and shall be
added to the price of the cigarettes and recovered from the ultimate
consumer or user. Distributors, wholesalers, or retailers may state the
amount of the tax separately from the price of such cigarettes on all
price display signs, sales or delivery slips, bills, and statements
which advertise or indicate the price of such cigarettes. (Formerly: Acts 1947, c.222, s.1; Acts 1963(ss), c.37, s.1.) As
amended by P.L.2-1988, SEC.20.
IC 6-7-1-2 "Cigarette" defined
Sec. 2. Unless the context requires otherwise, "cigarette" shall
mean and include any roll for smoking made wholly or in part of
tobacco, irrespective of size or shape and irrespective of tobacco
being flavored, adulterated, or mixed with any other ingredient,
where such roll has a wrapper or cover made of paper or any other
material. Provided the definition in this section shall not be construed
to include cigars. Excepting where context clearly shows that
cigarettes alone are intended, the term "cigarettes" shall mean and
include cigarettes, cigarette papers or wrappers, and tubes upon
which 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, "individual
package" shall mean and include every individual packet, box or
other container used to contain or to convey cigarettes to the
consumer. 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, means
and 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 corporation
or any other political subdivision of the state engaged in private or
proprietary activities or business, estate, trust, or any other group or
combination acting as a unit, and the plural as well as the singular
number, unless the intention to give a more limited meaning is
disclosed 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 duly
authorized assistants and employees. (Formerly: Acts 1947, c.222, s.5; Acts 1963(ss), c.37, s.2.) As
amended by Acts 1980, P.L.61, SEC.12.
IC 6-7-1-6 "Distributor" defined
Sec. 6. Unless the context requires otherwise, "distributor" shall
mean and include every person who sells, barters, exchanges, or
distributes cigarettes in the state of Indiana to retail dealers for the
purpose of resale, or who purchases cigarettes directly from a
manufacturer of cigarettes, or who purchases for resale cigarettes
directly from a manufacturer of cigarettes, or from a wholesaler,
jobber, or distributor outside of the state of Indiana who is not a
distributor 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 any
person for any purpose other than resale, irrespective of quantity or
amount, 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 a
cigarette 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 mean
the stamps printed, manufactured, or made by authority of the
department, as provided in this chapter, and issued, sold, or
circulated by it and by the use of which the tax levied under this
chapter is paid, or any impression, indicium, or character imprinted
upon individual packages of cigarettes, cigarette papers, or tubes by
a metered stamping machine or other device such as may be
authorized by the department for use by the holder of a certificate
under the provisions of this chapter and by the use of which the tax
levied 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, "counterfeit
stamp" shall mean any stamp, label, print, indicium, or character
which evidences, or purports to evidence the payment of any tax
levied by this chapter, and which stamp, label, print, indicium, or
character has not been printed, manufactured, or made by authority
of the department as provided in this chapter, and issued, sold, or
circulated 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, "drop
shipment" shall mean any shipment billed to one other than the
person 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 be
collected and paid as provided in this chapter, upon the sale,
exchange, bartering, furnishing, giving away, or otherwise disposing
of 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 hundred
seventy-five thousandths cents ($0.04975) per individual
cigarette.
(2) On cigarettes weighing more than three (3) pounds per
thousand (1,000), a tax at the rate of six and six hundred twelve
thousandths cents ($0.06612) per individual cigarette, except
that if any cigarettes weighing more than three (3) pounds per
thousand (1,000) shall be more than six and one-half (6 1/2)
inches in length, they shall be taxable at the rate provided in
subdivision (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 or
prepared for the purpose of making cigarettes, which are sold,
exchanged, bartered, given away, or otherwise disposed of within the
state of Indiana (other than to a manufacturer of cigarettes for use by
him in the manufacture of cigarettes), the following taxes are
imposed, 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 one
hundred (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 or
fractional part thereof. (Formerly: Acts 1947, c.222, s.11; Acts 1963(ss), c.37, s.3; Acts
1965, 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 be
collected and paid as provided in this chapter, upon the use,
consumption, or possession for use of cigarettes within the state of
Indiana, taxes at the rates set forth and in the manner provided in
section 12 of this chapter. Provided, that the tax levied, assessed, and
imposed by this section shall not be applicable to the use,
consumption, or possession for use of cigarettes upon which the tax
levied, assessed, and imposed by the provisions of section 12 of this
chapter 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 taxes
imposed under this chapter on:
(1) cigarettes, where the carrier takes possession of the
cigarettes because they were damaged or they were not accepted
by 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 chapter
shall be paid and the payment thereof evidenced by the purchase of
stamps and by affixing the same to the individual packages, cigarette
papers, wrappers, and tubes and duly cancelling said stamps, as
provided in this chapter, but there shall be no further tax assessed,
imposed, or collected by virtue of this chapter upon the sale or use
of any package of cigarettes, cigarette papers, wrappers, or tubes
upon which said stamps have been previously affixed as provided by
this 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 enforce
chapter; salaries and expenses; powers
Sec. 15. (a) The department is the official agent of the state for the
administration and enforcement of this chapter. A sufficient sum to
pay salaries and expenses is appropriated to the department out of the
monies received by virtue of this chapter.
(b) The department may issue registration certificates, upon the
terms and conditions provided in this chapter, and may revoke or
suspend the same upon the violation of this chapter by the holder of
such a certificate.
(c) The department may apply for membership in the National
Tobacco Tax Association.
(d) The department may design and have printed or manufactured
stamps of sizes and denominations to be affixed to each individual
package. The stamps shall be firmly affixed on each individual
package in such a manner that the stamps can not be removed
without being mutilated or destroyed; however, the department may
by regulation designate some other manner for cancelation of stamps.
In addition to the stamps, the department may by rules and
regulations authorize distributors to use metered stamping machines
or other devices which will imprint distinctive indicia evidencing the
payment of the tax upon each individual package. The machines shall
be constructed in such a manner as will accurately record or meter
the number of impressions or tax stamps made. The tax meter
machines or other devices shall be kept available at all reasonable
times for inspection by the department, and the machines shall be
maintained in proper operating condition. A person who knowingly
tampers with the printing or recording mechanism of such a machine
commits 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 county
applies to the department and fulfills the bonding requirements
established by the department, the department shall approve at least
one (1) financial institution in each county to recharge the metered
stamping 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 a
registration certificate. Application for a registration certificate shall
be made in writing upon forms prescribed by the department and
shall be signed and verified by the distributor.
(b) The registration certificate shall be issued only upon payment
to 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 of
credit:
(1) in a form and with a surety or financial institution approved
by 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 the
registration certificate by reason of the violation of any of the
provisions of this chapter.
(c) All registration certificates shall be personal, nontransferable,
and valid for one (1) year from date of issuance unless revoked or
suspended 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 for
each place of business where he operates as a distributor (as defined
by 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 for
which it is issued.
(f) Any person who changes his or her place of business shall
return his or her certificate and the department shall issue a new
certificate for the new place of business free of charge.
(g) Any certificate issued under this section may be surrendered
to the department at any time prior to its expiration, and the
department shall refund an amount of money which bears the same
proportion to the fee originally paid therefor as the unexpired period
of the permit bears to one (1) year. However, no refund shall be
allowed in the event that a certificate is revoked as provided in this
chapter, and no refund shall be made in excess of four hundred
dollars ($400). (Formerly: Acts 1947, c.222, s.15; Acts 1969, c.324, s.1.) As
amended 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 of
revenue stamps; execution of bond
Sec. 17. (a) Distributors who hold certificates and retailers shall
be agents of the state in the collection of the taxes imposed by this
chapter and the amount of the tax levied, assessed, and imposed by
this chapter on cigarettes sold, exchanged, bartered, furnished, given
away, or otherwise disposed of by distributors or to retailers.
Distributors who hold certificates shall be agents of the department
to affix the required stamps and shall be entitled to purchase the
stamps from the department at a discount of one and two-tenths cents
($0.012) per individual package of cigarettes as compensation for
their labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps 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 of
credit satisfactory to the department, in an amount not less than
the 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 such
distributor may be liable; and
(3) payment for the revenue stamps must be made by electronic
funds transfer (as defined in IC 4-8.1-2-7).
The bond or letter of credit, conditioned to secure payment for the
stamps, shall be executed by the distributor as principal and by a
corporation duly authorized to engage in business as a surety
company or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b). (Formerly: Acts 1947, c.222, s.16; Acts 1963(ss), c.37, s.4; Acts
1965, 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, in
determining the amount to pay for stamps purchased under this
chapter, a distributor is entitled to a credit against the cost of stamps
purchased 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 a
retailer;
(2) resulted from a transfer of cigarettes to a retailer in which
the distributor did not collect the tax imposed by this chapter
from the retailer; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code after
December 31, 2006.
(b) If a distributor claims a credit under subsection (a) and
subsequently collects all of the associated receivable, the distributor
shall remit the entire amount of the credit previously claimed under
subsection (a) to the department within thirty (30) days of collection.
(c) If a distributor claims a credit under subsection (a) and
subsequently collects part of the associated receivable, the distributor
shall remit the amount determined under STEP SIX of the following
formula to the department within thirty (30) days after collection:
STEP ONE: Determine the part of the associated receivable
before collection that is attributable to the taxable price of the
products subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivable
before collection that is attributable to the amount paid by the
distributor for the stamps affixed to the products that were
transferred 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 entitled
under subsection (a) exceeds the cost of the stamps that the
distributor seeks to purchase, the remainder of the credit may be
applied to future purchases of stamps by the distributor. For any
uncollectible receivable used to establish a credit under subsection
(a), the amount of the credit that is available to be applied to a
purchase of stamps is the total amount of the credit determined under
subsection (a) reduced by the sum of partial credits applied by the
distributor to previous purchases of stamps.
(e) 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 credit under this section is not assignable to an
individual or entity that is not part of the same affiliated group as the
assignor. 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 taxed
under this chapter, shall cause each individual package to have the
requisite denomination and amount of stamps firmly affixed. Every
retailer, upon receipt of cigarettes not having the proper amount of
stamps firmly affixed, to each individual package, or stamped by a
meter stamping machine, by a distributor shall stamp or firmly affix
stamps immediately on each individual package. Provided, however,
that any distributor engaged in interstate business, shall be permitted
to set aside such part of his stock as may be necessary for the
conduct of such interstate business without affixing the stamps
required by this chapter. Every distributor, at the time of shipping or
delivering any cigarettes, shall make a duplicate invoice, showing
complete details of each transaction, and shall retain the duplicate
subject to the inspection by the department or its agent. Every
distributor shall include with each shipment or delivery of cigarettes
an invoice showing complete details of the transactions. Every
retailer shall retain for not less than two (2) weeks the invoice
included with each shipment or delivery of cigarettes subject to
inspection by the department or its agent. A retailer may request a
duplicate 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 preserve
for three (3) years records and invoices, showing the purchase and
sale of all cigarettes. Such distributors shall also keep separate
invoices, and records of stamps purchased. All the aforementioned
records, invoices, and stocks of cigarettes and unused stamps on
hand shall be open to inspection by the department at all reasonable
times. Provided, however, that all distributors, within fifteen (15)
days after the first day of each month, shall file with the department
a report of all drop shipment sales made by them to other distributors
within this state during the preceding month, which report shall give
the name and address of the distributor, the kind and quantity of the
sales, and their dates of delivery. Provided, further, however, that
every distributor engaged in interstate business shall, within ten (10)
days after the first day of each month, file with the department a
report of all such interstate sales made during the preceding month,
which report shall give the name and address of the person to whom
sold, the kind and quantity of the sales, and their dates of delivery.
(b) All drop shipments made by manufacturers of cigarettes
within the state of Indiana must be shipped and billed through a
regularly licensed distributor licensed by the state of Indiana (as
defined 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 delivery
ticket requirement; exceptions
Sec. 19.5. A person who transports cigarettes which do not bear
an Indiana tax stamp over Indiana highways shall carry invoices or
delivery tickets for those cigarettes containing the following
information:
(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 tax
imposed on those cigarettes under this chapter.
However, this section does not apply to licensed distributors, to
common carriers, or to employees of the state or federal government
who are performing their official duties in the enforcement of this
chapter. 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 or
offers for sale an individual package, having affixed thereto any
fraudulent, spurious, imitation, or counterfeit stamp, or stamp which
has been previously affixed, commits a Class C felony. A person who
knowingly affixes to an individual package either a fraudulent,
spurious, imitation, or counterfeit stamp or a stamp which has
previously been affixed to an individual package commits a Class C
felony. (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 who
recklessly:
(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 and
accessibility 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 this
chapter for which no other provision for punishment has been made
commits 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 stamps
affixed; seizure; forfeiture; redemption penalty; offenses;
exceptions
Sec. 24. (a) Whenever the department discovers any cigarettes
which are subject to tax under this chapter and upon which the tax
has not been paid or the stamps affixed as required, it may seize and
take possession of the cigarettes together with any vending machine
or receptacle in which they are held for sale. The seized cigarettes,
vending machine, or receptacle, not including money contained in
the vending machine or receptacle, shall be forfeited to the state. The
department may, within a reasonable time after the seizure:
(1) sell the forfeited cigarettes and vending machines or
receptacles at public auction, but the department shall require
the purchaser to affix the proper amount of the stamps to the
cigarettes upon delivery to the purchaser;
(2) permit the person from whom the cigarettes were seized to
redeem the cigarettes and any vending machine or receptacle
seized therewith, by the payment of the tax due together with a
penalty of fifty percent (50%) and the costs incurred in the
proceeding; or
(3) destroy the confiscated cigarettes and vending machine or
receptacle.
(b) The confiscation, destruction, sale, or redemption of cigarettes
does not relieve any person of criminal penalties imposed for
violation of this chapter.
(c) Any person who sells or holds for sale any packages of
cigarettes not bearing Indiana tax stamps commits a Class A
misdemeanor. This subsection does not apply to distributors or to
employees 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 any
person other than a distributor, a common carrier, or an employee of
the state or federal government performing his official duties in the
enforcement of this chapter constitutes prima facie evidence that the
cigarettes 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 has
previously been convicted of a misdemeanor for possession or sale
of unstamped cigarettes commits a Class D felony. (Formerly: Acts 1947, c.222, s.23; Acts 1969, c.324, s.2.) As
amended 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 any
cigarettes are being kept, sold, offered for sale, or given away in
violation of this chapter, an officer of the department may make
affidavit of such fact, describing the place or thing to be searched
before a court of competent jurisdiction, and the judge thereof shall
issue a search warrant directed to the sheriff, constable, police
officer, or authorized agent of the department commanding him to
search any place or vehicle that may be designated in the affidavit
and search warrant, and to seize any cigarettes so possessed and to
hold the same, and to arrest the person in control or possession of the
same. If upon the return of the warrant it shall appear that cigarettes
were 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 stamps
have been affixed have become mutilated, or otherwise unfit for use,
distributors shall notify the department, and, if an investigation
discloses 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 the
distributor who purchased such stamps, and the department shall then
refund 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 collected
under this chapter shall be deposited in the following manner:
(1) Four and twenty-two hundredths percent (4.22%) of the
money shall be deposited in a fund to be known as the cigarette
tax fund.
(2) Six-tenths percent (0.6%) of the money shall be deposited
in a fund to be known as the mental health centers fund.
(3) Fifty-four and five-tenths percent (54.5%) of the money
shall be deposited in the state general fund.
(4) Five and forty-three hundredths percent (5.43%) of the
money shall be deposited into the pension relief fund
established in IC 5-10.3-11.
(5) Twenty-seven and five hundredths percent (27.05%) of the
money shall be deposited in the Indiana check-up plan trust
fund established by IC 12-15-44.2-17.
(6) Two and forty-six hundredths percent (2.46%) of the money
shall be deposited in the state general fund for the purpose of
paying appropriations for Medicaid_Current Obligations, for
provider reimbursements.
(7) Five and seventy-four hundredths percent (5.74%) of the
money shall be deposited in the state retiree health benefit trust
fund 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 the
end of a fiscal year does not revert to the state general fund.
However, if in any fiscal year, the amount allocated to a fund under
subdivision (1) or (2) is less than the amount received in fiscal year
1977, then that fund shall be credited with the difference between the
amount allocated and the amount received in fiscal year 1977, and
the allocation for the fiscal year to the fund under subdivision (3)
shall be reduced by the amount of that difference. Money deposited
under subdivisions (6) through (7) may not be used for any purpose
other 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 natural
resources; 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 not
more than twenty-one percent (21%) of the money appropriated to it
under this section for:
(1) flood control and water resource projects, including
multiple-purpose reservoirs; and
(2) applied research related to technical water resource
problems.
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%) of
the money appropriated to it under this section to construct,
reconstruct, rehabilitate, or repair general conservation facilities or
to acquire land.
(d) The department shall use at least forty-three percent (43%) of
the money appropriated to the department under this section for soil
conservation 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 fund
shall be deposited in the clean water Indiana fund established by
IC 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 governmental
entities; allocation; disposition
Sec. 30.1. (a) Two-thirds (2/3) of the money in the cigarette tax
fund is annually appropriated to the cities and towns of this state and
to certain local governmental entities.
(b) The amount which is allocated to each city or town under this
section 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 the
city or town, and the denominator of which is the total
population of all the cities and towns of Indiana.
(c) The auditor of state shall calculate and distribute the amount
allocated to each city or town under this section on or before June 1
and December 1 of each year. To make these semiannual
distributions, the auditor of state shall issue warrants drawn on the
cigarette tax fund to the officials designated in subsection (d) or (e).
(d) For a consolidated city, or a city or town which is located in
the same county as the consolidated city, the auditor of state shall
issue a warrant for:
(1) three-fourteenths (3/14) of the money allocated to the city
or town under subsection (b) to the fiscal officer of the city or
town; and
(2) the remaining eleven-fourteenths (11/14) of the money to
the treasurer of that county.
The fiscal officer of the city or town shall deposit the money
distributed to him under this subsection in the city's or town's general
fund. The county treasurer shall annually deposit three hundred fifty
thousand dollars ($350,000) which he receives under this subsection
in the capital improvement bond fund of the county. The remainder
of the money which the county treasurer receives under this
subsection is appropriated to the department of transportation of the
consolidated city. The county treasurer shall serve as custodian of the
money so appropriated to the department.
(e) For a city or town which is not located in the same county as
a consolidated city, the auditor of state shall issue a warrant for the
total amount allocated to the city or town under subsection (b) to the
fiscal officer of the city or town. The fiscal officer shall deposit
three-fourteenths (3/14) of the money in the city's or town's general
fund, and he shall deposit the remaining eleven-fourteenths (11/14)
of the money in the city's or town's cumulative capital improvement
fund. 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 state
department of health one hundred ninety thousand dollars ($190,000)
from the state general fund for the purpose of providing
supplementary funding for the WIC (Women, Infants, and Children)
program (42 U.S.C. 1786) in Indiana. The appropriation shall be
administered by the nutrition division of the state department of
health and shall be allocated to fund local WIC programs.
(b) There is annually appropriated to the state department of
health one hundred ninety thousand dollars ($190,000) from the state
general fund for the purpose of providing supplementary funding for
maternal and child health services. The appropriation shall be
administered by the maternal and child health division of the state
department of health. The funds appropriated under this subsection
must be used to:
(1) supplement federal Maternal and Child Health Services
Block Grant funds provided under 42 U.S.C. 701 et seq. for the
purpose of establishing and maintaining programs of pregnancy
care in underserved areas of Indiana; and
(2) provide funding for the hospital and medical expenses
connected with the delivery of children whose parents are
eligible for services that may be reimbursed with funds
provided under the federal Maternal and Child Health Services
Block Grant Program (42 U.S.C. 701 et seq.).
(c) There is annually transferred to the school age child care
project fund established under IC 12-17-12-7 from the state general
fund five hundred fifty thousand dollars ($550,000) for carrying out
the 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 health
maintenance fund established by IC 16-46-10 two million four
hundred thirty thousand dollars ($2,430,000) from the state general
fund to provide funds for annual distribution to local boards of health
in accordance with IC 16-46-10-2 to enable local boards of health to
provide basic health services.
(b) The state department of health may retain annually a
maximum of fifty thousand dollars ($50,000) of the total
appropriation to the local health maintenance fund under subsection
(a) to pay administrative expenses incurred by the state department
of 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 of
each town shall, by ordinance or resolution, establish a cumulative
capital improvement fund for the city or town. Except as otherwise
provided in subsection (c), the city or town may only use money in
its 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, or
repair:
(A) computer hardware;
(B) computer software;
(C) wiring and computer networks; and
(D) communications access systems used to connect with
computer networks or electronic gateways;
(5) to pay for the services of full-time or part-time computer
maintenance employees;
(6) to conduct nonrecurring in-service technology training of
unit employees;
(7) to undertake Internet application development;
(8) to retire general obligation bonds issued by the city or town
for 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 is
appropriated by the fiscal body of the city or town.
(b) The money in the city's or town's cumulative capital
improvement 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's
or 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; use
of money by division
Sec. 32.1. (a) The money in the mental health centers fund is
annually 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 community
mental health centers; and
(2) to provide grants for a partial facility if there is a reasonable
assurance that the facility will provide community mental health
services within five (5) years after it provides any partial
service 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 of
any tax imposed by this chapter. It shall be unlawful for any person
to advertise, print, publish, or circulate through or by use of any
medium of communication any advertisement or offer to sell
cigarettes within or into the state of Indiana, in which it is stated or
implied that any taxes provided for in this chapter will not or need
not 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 any
false report or false statement in any report, with intent to defraud the
state or to evade the payment of the tax, or any part thereof, imposed
by this chapter. (Formerly: Acts 1947, c.222, s.28a; Acts 1969, c.324, s.3.) As
amended by Acts 1978, P.L.2, SEC.649.
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 on
all cigarettes sold, used, consumed, handled, or distributed within
this state, and to collect the tax from the person who first sells, uses,
consumes, handles, or distributes the cigarettes. It is further the intent
and purpose of this chapter that whenever any cigarettes are given for
advertising or any purpose whatsoever, they shall be taxed in the
same manner as if they were sold, used, consumed, handled, or
distributed in this state. Notwithstanding any other provisions
contained in this chapter, the liability for the excise taxes imposed by
this chapter shall be conclusively presumed to be on the retail
purchaser or ultimate consumer, precollected for convenience and
facility only. When such taxes are paid by any other person, such
payment shall be considered as an advance payment and shall be
added to the price of the cigarettes and recovered from the ultimate
consumer or user. Distributors, wholesalers, or retailers may state the
amount of the tax separately from the price of such cigarettes on all
price display signs, sales or delivery slips, bills, and statements
which advertise or indicate the price of such cigarettes. (Formerly: Acts 1947, c.222, s.1; Acts 1963(ss), c.37, s.1.) As
amended by P.L.2-1988, SEC.20.
IC 6-7-1-2 "Cigarette" defined
Sec. 2. Unless the context requires otherwise, "cigarette" shall
mean and include any roll for smoking made wholly or in part of
tobacco, irrespective of size or shape and irrespective of tobacco
being flavored, adulterated, or mixed with any other ingredient,
where such roll has a wrapper or cover made of paper or any other
material. Provided the definition in this section shall not be construed
to include cigars. Excepting where context clearly shows that
cigarettes alone are intended, the term "cigarettes" shall mean and
include cigarettes, cigarette papers or wrappers, and tubes upon
which 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, "individual
package" shall mean and include every individual packet, box or
other container used to contain or to convey cigarettes to the
consumer. 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, means
and 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 corporation
or any other political subdivision of the state engaged in private or
proprietary activities or business, estate, trust, or any other group or
combination acting as a unit, and the plural as well as the singular
number, unless the intention to give a more limited meaning is
disclosed 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 duly
authorized assistants and employees. (Formerly: Acts 1947, c.222, s.5; Acts 1963(ss), c.37, s.2.) As
amended by Acts 1980, P.L.61, SEC.12.
IC 6-7-1-6 "Distributor" defined
Sec. 6. Unless the context requires otherwise, "distributor" shall
mean and include every person who sells, barters, exchanges, or
distributes cigarettes in the state of Indiana to retail dealers for the
purpose of resale, or who purchases cigarettes directly from a
manufacturer of cigarettes, or who purchases for resale cigarettes
directly from a manufacturer of cigarettes, or from a wholesaler,
jobber, or distributor outside of the state of Indiana who is not a
distributor 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 any
person for any purpose other than resale, irrespective of quantity or
amount, 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 a
cigarette 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 mean
the stamps printed, manufactured, or made by authority of the
department, as provided in this chapter, and issued, sold, or
circulated by it and by the use of which the tax levied under this
chapter is paid, or any impression, indicium, or character imprinted
upon individual packages of cigarettes, cigarette papers, or tubes by
a metered stamping machine or other device such as may be
authorized by the department for use by the holder of a certificate
under the provisions of this chapter and by the use of which the tax
levied 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, "counterfeit
stamp" shall mean any stamp, label, print, indicium, or character
which evidences, or purports to evidence the payment of any tax
levied by this chapter, and which stamp, label, print, indicium, or
character has not been printed, manufactured, or made by authority
of the department as provided in this chapter, and issued, sold, or
circulated 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, "drop
shipment" shall mean any shipment billed to one other than the
person 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 be
collected and paid as provided in this chapter, upon the sale,
exchange, bartering, furnishing, giving away, or otherwise disposing
of 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 hundred
seventy-five thousandths cents ($0.04975) per individual
cigarette.
(2) On cigarettes weighing more than three (3) pounds per
thousand (1,000), a tax at the rate of six and six hundred twelve
thousandths cents ($0.06612) per individual cigarette, except
that if any cigarettes weighing more than three (3) pounds per
thousand (1,000) shall be more than six and one-half (6 1/2)
inches in length, they shall be taxable at the rate provided in
subdivision (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 or
prepared for the purpose of making cigarettes, which are sold,
exchanged, bartered, given away, or otherwise disposed of within the
state of Indiana (other than to a manufacturer of cigarettes for use by
him in the manufacture of cigarettes), the following taxes are
imposed, 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 one
hundred (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 or
fractional part thereof. (Formerly: Acts 1947, c.222, s.11; Acts 1963(ss), c.37, s.3; Acts
1965, 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 be
collected and paid as provided in this chapter, upon the use,
consumption, or possession for use of cigarettes within the state of
Indiana, taxes at the rates set forth and in the manner provided in
section 12 of this chapter. Provided, that the tax levied, assessed, and
imposed by this section shall not be applicable to the use,
consumption, or possession for use of cigarettes upon which the tax
levied, assessed, and imposed by the provisions of section 12 of this
chapter 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 taxes
imposed under this chapter on:
(1) cigarettes, where the carrier takes possession of the
cigarettes because they were damaged or they were not accepted
by 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 chapter
shall be paid and the payment thereof evidenced by the purchase of
stamps and by affixing the same to the individual packages, cigarette
papers, wrappers, and tubes and duly cancelling said stamps, as
provided in this chapter, but there shall be no further tax assessed,
imposed, or collected by virtue of this chapter upon the sale or use
of any package of cigarettes, cigarette papers, wrappers, or tubes
upon which said stamps have been previously affixed as provided by
this 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 enforce
chapter; salaries and expenses; powers
Sec. 15. (a) The department is the official agent of the state for the
administration and enforcement of this chapter. A sufficient sum to
pay salaries and expenses is appropriated to the department out of the
monies received by virtue of this chapter.
(b) The department may issue registration certificates, upon the
terms and conditions provided in this chapter, and may revoke or
suspend the same upon the violation of this chapter by the holder of
such a certificate.
(c) The department may apply for membership in the National
Tobacco Tax Association.
(d) The department may design and have printed or manufactured
stamps of sizes and denominations to be affixed to each individual
package. The stamps shall be firmly affixed on each individual
package in such a manner that the stamps can not be removed
without being mutilated or destroyed; however, the department may
by regulation designate some other manner for cancelation of stamps.
In addition to the stamps, the department may by rules and
regulations authorize distributors to use metered stamping machines
or other devices which will imprint distinctive indicia evidencing the
payment of the tax upon each individual package. The machines shall
be constructed in such a manner as will accurately record or meter
the number of impressions or tax stamps made. The tax meter
machines or other devices shall be kept available at all reasonable
times for inspection by the department, and the machines shall be
maintained in proper operating condition. A person who knowingly
tampers with the printing or recording mechanism of such a machine
commits 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 county
applies to the department and fulfills the bonding requirements
established by the department, the department shall approve at least
one (1) financial institution in each county to recharge the metered
stamping 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 a
registration certificate. Application for a registration certificate shall
be made in writing upon forms prescribed by the department and
shall be signed and verified by the distributor.
(b) The registration certificate shall be issued only upon payment
to 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 of
credit:
(1) in a form and with a surety or financial institution approved
by 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 the
registration certificate by reason of the violation of any of the
provisions of this chapter.
(c) All registration certificates shall be personal, nontransferable,
and valid for one (1) year from date of issuance unless revoked or
suspended 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 for
each place of business where he operates as a distributor (as defined
by 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 for
which it is issued.
(f) Any person who changes his or her place of business shall
return his or her certificate and the department shall issue a new
certificate for the new place of business free of charge.
(g) Any certificate issued under this section may be surrendered
to the department at any time prior to its expiration, and the
department shall refund an amount of money which bears the same
proportion to the fee originally paid therefor as the unexpired period
of the permit bears to one (1) year. However, no refund shall be
allowed in the event that a certificate is revoked as provided in this
chapter, and no refund shall be made in excess of four hundred
dollars ($400). (Formerly: Acts 1947, c.222, s.15; Acts 1969, c.324, s.1.) As
amended 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 of
revenue stamps; execution of bond
Sec. 17. (a) Distributors who hold certificates and retailers shall
be agents of the state in the collection of the taxes imposed by this
chapter and the amount of the tax levied, assessed, and imposed by
this chapter on cigarettes sold, exchanged, bartered, furnished, given
away, or otherwise disposed of by distributors or to retailers.
Distributors who hold certificates shall be agents of the department
to affix the required stamps and shall be entitled to purchase the
stamps from the department at a discount of one and two-tenths cents
($0.012) per individual package of cigarettes as compensation for
their labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps 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 of
credit satisfactory to the department, in an amount not less than
the 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 such
distributor may be liable; and
(3) payment for the revenue stamps must be made by electronic
funds transfer (as defined in IC 4-8.1-2-7).
The bond or letter of credit, conditioned to secure payment for the
stamps, shall be executed by the distributor as principal and by a
corporation duly authorized to engage in business as a surety
company or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b). (Formerly: Acts 1947, c.222, s.16; Acts 1963(ss), c.37, s.4; Acts
1965, 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, in
determining the amount to pay for stamps purchased under this
chapter, a distributor is entitled to a credit against the cost of stamps
purchased 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 a
retailer;
(2) resulted from a transfer of cigarettes to a retailer in which
the distributor did not collect the tax imposed by this chapter
from the retailer; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code after
December 31, 2006.
(b) If a distributor claims a credit under subsection (a) and
subsequently collects all of the associated receivable, the distributor
shall remit the entire amount of the credit previously claimed under
subsection (a) to the department within thirty (30) days of collection.
(c) If a distributor claims a credit under subsection (a) and
subsequently collects part of the associated receivable, the distributor
shall remit the amount determined under STEP SIX of the following
formula to the department within thirty (30) days after collection:
STEP ONE: Determine the part of the associated receivable
before collection that is attributable to the taxable price of the
products subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivable
before collection that is attributable to the amount paid by the
distributor for the stamps affixed to the products that were
transferred 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 entitled
under subsection (a) exceeds the cost of the stamps that the
distributor seeks to purchase, the remainder of the credit may be
applied to future purchases of stamps by the distributor. For any
uncollectible receivable used to establish a credit under subsection
(a), the amount of the credit that is available to be applied to a
purchase of stamps is the total amount of the credit determined under
subsection (a) reduced by the sum of partial credits applied by the
distributor to previous purchases of stamps.
(e) 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 credit under this section is not assignable to an
individual or entity that is not part of the same affiliated group as the
assignor. 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 taxed
under this chapter, shall cause each individual package to have the
requisite denomination and amount of stamps firmly affixed. Every
retailer, upon receipt of cigarettes not having the proper amount of
stamps firmly affixed, to each individual package, or stamped by a
meter stamping machine, by a distributor shall stamp or firmly affix
stamps immediately on each individual package. Provided, however,
that any distributor engaged in interstate business, shall be permitted
to set aside such part of his stock as may be necessary for the
conduct of such interstate business without affixing the stamps
required by this chapter. Every distributor, at the time of shipping or
delivering any cigarettes, shall make a duplicate invoice, showing
complete details of each transaction, and shall retain the duplicate
subject to the inspection by the department or its agent. Every
distributor shall include with each shipment or delivery of cigarettes
an invoice showing complete details of the transactions. Every
retailer shall retain for not less than two (2) weeks the invoice
included with each shipment or delivery of cigarettes subject to
inspection by the department or its agent. A retailer may request a
duplicate 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 preserve
for three (3) years records and invoices, showing the purchase and
sale of all cigarettes. Such distributors shall also keep separate
invoices, and records of stamps purchased. All the aforementioned
records, invoices, and stocks of cigarettes and unused stamps on
hand shall be open to inspection by the department at all reasonable
times. Provided, however, that all distributors, within fifteen (15)
days after the first day of each month, shall file with the department
a report of all drop shipment sales made by them to other distributors
within this state during the preceding month, which report shall give
the name and address of the distributor, the kind and quantity of the
sales, and their dates of delivery. Provided, further, however, that
every distributor engaged in interstate business shall, within ten (10)
days after the first day of each month, file with the department a
report of all such interstate sales made during the preceding month,
which report shall give the name and address of the person to whom
sold, the kind and quantity of the sales, and their dates of delivery.
(b) All drop shipments made by manufacturers of cigarettes
within the state of Indiana must be shipped and billed through a
regularly licensed distributor licensed by the state of Indiana (as
defined 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 delivery
ticket requirement; exceptions
Sec. 19.5. A person who transports cigarettes which do not bear
an Indiana tax stamp over Indiana highways shall carry invoices or
delivery tickets for those cigarettes containing the following
information:
(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 tax
imposed on those cigarettes under this chapter.
However, this section does not apply to licensed distributors, to
common carriers, or to employees of the state or federal government
who are performing their official duties in the enforcement of this
chapter. 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 or
offers for sale an individual package, having affixed thereto any
fraudulent, spurious, imitation, or counterfeit stamp, or stamp which
has been previously affixed, commits a Class C felony. A person who
knowingly affixes to an individual package either a fraudulent,
spurious, imitation, or counterfeit stamp or a stamp which has
previously been affixed to an individual package commits a Class C
felony. (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 who
recklessly:
(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 and
accessibility 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 this
chapter for which no other provision for punishment has been made
commits 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 stamps
affixed; seizure; forfeiture; redemption penalty; offenses;
exceptions
Sec. 24. (a) Whenever the department discovers any cigarettes
which are subject to tax under this chapter and upon which the tax
has not been paid or the stamps affixed as required, it may seize and
take possession of the cigarettes together with any vending machine
or receptacle in which they are held for sale. The seized cigarettes,
vending machine, or receptacle, not including money contained in
the vending machine or receptacle, shall be forfeited to the state. The
department may, within a reasonable time after the seizure:
(1) sell the forfeited cigarettes and vending machines or
receptacles at public auction, but the department shall require
the purchaser to affix the proper amount of the stamps to the
cigarettes upon delivery to the purchaser;
(2) permit the person from whom the cigarettes were seized to
redeem the cigarettes and any vending machine or receptacle
seized therewith, by the payment of the tax due together with a
penalty of fifty percent (50%) and the costs incurred in the
proceeding; or
(3) destroy the confiscated cigarettes and vending machine or
receptacle.
(b) The confiscation, destruction, sale, or redemption of cigarettes
does not relieve any person of criminal penalties imposed for
violation of this chapter.
(c) Any person who sells or holds for sale any packages of
cigarettes not bearing Indiana tax stamps commits a Class A
misdemeanor. This subsection does not apply to distributors or to
employees 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 any
person other than a distributor, a common carrier, or an employee of
the state or federal government performing his official duties in the
enforcement of this chapter constitutes prima facie evidence that the
cigarettes 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 has
previously been convicted of a misdemeanor for possession or sale
of unstamped cigarettes commits a Class D felony. (Formerly: Acts 1947, c.222, s.23; Acts 1969, c.324, s.2.) As
amended 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 any
cigarettes are being kept, sold, offered for sale, or given away in
violation of this chapter, an officer of the department may make
affidavit of such fact, describing the place or thing to be searched
before a court of competent jurisdiction, and the judge thereof shall
issue a search warrant directed to the sheriff, constable, police
officer, or authorized agent of the department commanding him to
search any place or vehicle that may be designated in the affidavit
and search warrant, and to seize any cigarettes so possessed and to
hold the same, and to arrest the person in control or possession of the
same. If upon the return of the warrant it shall appear that cigarettes
were 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 stamps
have been affixed have become mutilated, or otherwise unfit for use,
distributors shall notify the department, and, if an investigation
discloses 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 the
distributor who purchased such stamps, and the department shall then
refund 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 collected
under this chapter shall be deposited in the following manner:
(1) Four and twenty-two hundredths percent (4.22%) of the
money shall be deposited in a fund to be known as the cigarette
tax fund.
(2) Six-tenths percent (0.6%) of the money shall be deposited
in a fund to be known as the mental health centers fund.
(3) Fifty-four and five-tenths percent (54.5%) of the money
shall be deposited in the state general fund.
(4) Five and forty-three hundredths percent (5.43%) of the
money shall be deposited into the pension relief fund
established in IC 5-10.3-11.
(5) Twenty-seven and five hundredths percent (27.05%) of the
money shall be deposited in the Indiana check-up plan trust
fund established by IC 12-15-44.2-17.
(6) Two and forty-six hundredths percent (2.46%) of the money
shall be deposited in the state general fund for the purpose of
paying appropriations for Medicaid_Current Obligations, for
provider reimbursements.
(7) Five and seventy-four hundredths percent (5.74%) of the
money shall be deposited in the state retiree health benefit trust
fund 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 the
end of a fiscal year does not revert to the state general fund.
However, if in any fiscal year, the amount allocated to a fund under
subdivision (1) or (2) is less than the amount received in fiscal year
1977, then that fund shall be credited with the difference between the
amount allocated and the amount received in fiscal year 1977, and
the allocation for the fiscal year to the fund under subdivision (3)
shall be reduced by the amount of that difference. Money deposited
under subdivisions (6) through (7) may not be used for any purpose
other 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 natural
resources; 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 not
more than twenty-one percent (21%) of the money appropriated to it
under this section for:
(1) flood control and water resource projects, including
multiple-purpose reservoirs; and
(2) applied research related to technical water resource
problems.
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%) of
the money appropriated to it under this section to construct,
reconstruct, rehabilitate, or repair general conservation facilities or
to acquire land.
(d) The department shall use at least forty-three percent (43%) of
the money appropriated to the department under this section for soil
conservation 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 fund
shall be deposited in the clean water Indiana fund established by
IC 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 governmental
entities; allocation; disposition
Sec. 30.1. (a) Two-thirds (2/3) of the money in the cigarette tax
fund is annually appropriated to the cities and towns of this state and
to certain local governmental entities.
(b) The amount which is allocated to each city or town under this
section 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 the
city or town, and the denominator of which is the total
population of all the cities and towns of Indiana.
(c) The auditor of state shall calculate and distribute the amount
allocated to each city or town under this section on or before June 1
and December 1 of each year. To make these semiannual
distributions, the auditor of state shall issue warrants drawn on the
cigarette tax fund to the officials designated in subsection (d) or (e).
(d) For a consolidated city, or a city or town which is located in
the same county as the consolidated city, the auditor of state shall
issue a warrant for:
(1) three-fourteenths (3/14) of the money allocated to the city
or town under subsection (b) to the fiscal officer of the city or
town; and
(2) the remaining eleven-fourteenths (11/14) of the money to
the treasurer of that county.
The fiscal officer of the city or town shall deposit the money
distributed to him under this subsection in the city's or town's general
fund. The county treasurer shall annually deposit three hundred fifty
thousand dollars ($350,000) which he receives under this subsection
in the capital improvement bond fund of the county. The remainder
of the money which the county treasurer receives under this
subsection is appropriated to the department of transportation of the
consolidated city. The county treasurer shall serve as custodian of the
money so appropriated to the department.
(e) For a city or town which is not located in the same county as
a consolidated city, the auditor of state shall issue a warrant for the
total amount allocated to the city or town under subsection (b) to the
fiscal officer of the city or town. The fiscal officer shall deposit
three-fourteenths (3/14) of the money in the city's or town's general
fund, and he shall deposit the remaining eleven-fourteenths (11/14)
of the money in the city's or town's cumulative capital improvement
fund. 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 state
department of health one hundred ninety thousand dollars ($190,000)
from the state general fund for the purpose of providing
supplementary funding for the WIC (Women, Infants, and Children)
program (42 U.S.C. 1786) in Indiana. The appropriation shall be
administered by the nutrition division of the state department of
health and shall be allocated to fund local WIC programs.
(b) There is annually appropriated to the state department of
health one hundred ninety thousand dollars ($190,000) from the state
general fund for the purpose of providing supplementary funding for
maternal and child health services. The appropriation shall be
administered by the maternal and child health division of the state
department of health. The funds appropriated under this subsection
must be used to:
(1) supplement federal Maternal and Child Health Services
Block Grant funds provided under 42 U.S.C. 701 et seq. for the
purpose of establishing and maintaining programs of pregnancy
care in underserved areas of Indiana; and
(2) provide funding for the hospital and medical expenses
connected with the delivery of children whose parents are
eligible for services that may be reimbursed with funds
provided under the federal Maternal and Child Health Services
Block Grant Program (42 U.S.C. 701 et seq.).
(c) There is annually transferred to the school age child care
project fund established under IC 12-17-12-7 from the state general
fund five hundred fifty thousand dollars ($550,000) for carrying out
the 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 health
maintenance fund established by IC 16-46-10 two million four
hundred thirty thousand dollars ($2,430,000) from the state general
fund to provide funds for annual distribution to local boards of health
in accordance with IC 16-46-10-2 to enable local boards of health to
provide basic health services.
(b) The state department of health may retain annually a
maximum of fifty thousand dollars ($50,000) of the total
appropriation to the local health maintenance fund under subsection
(a) to pay administrative expenses incurred by the state department
of 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 of
each town shall, by ordinance or resolution, establish a cumulative
capital improvement fund for the city or town. Except as otherwise
provided in subsection (c), the city or town may only use money in
its 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, or
repair:
(A) computer hardware;
(B) computer software;
(C) wiring and computer networks; and
(D) communications access systems used to connect with
computer networks or electronic gateways;
(5) to pay for the services of full-time or part-time computer
maintenance employees;
(6) to conduct nonrecurring in-service technology training of
unit employees;
(7) to undertake Internet application development;
(8) to retire general obligation bonds issued by the city or town
for 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 is
appropriated by the fiscal body of the city or town.
(b) The money in the city's or town's cumulative capital
improvement 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's
or 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; use
of money by division
Sec. 32.1. (a) The money in the mental health centers fund is
annually 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 community
mental health centers; and
(2) to provide grants for a partial facility if there is a reasonable
assurance that the facility will provide community mental health
services within five (5) years after it provides any partial
service 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 of
any tax imposed by this chapter. It shall be unlawful for any person
to advertise, print, publish, or circulate through or by use of any
medium of communication any advertisement or offer to sell
cigarettes within or into the state of Indiana, in which it is stated or
implied that any taxes provided for in this chapter will not or need
not 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 any
false report or false statement in any report, with intent to defraud the
state or to evade the payment of the tax, or any part thereof, imposed
by this chapter. (Formerly: Acts 1947, c.222, s.28a; Acts 1969, c.324, s.3.) As
amended by Acts 1978, P.L.2, SEC.649.
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 on
all cigarettes sold, used, consumed, handled, or distributed within
this state, and to collect the tax from the person who first sells, uses,
consumes, handles, or distributes the cigarettes. It is further the intent
and purpose of this chapter that whenever any cigarettes are given for
advertising or any purpose whatsoever, they shall be taxed in the
same manner as if they were sold, used, consumed, handled, or
distributed in this state. Notwithstanding any other provisions
contained in this chapter, the liability for the excise taxes imposed by
this chapter shall be conclusively presumed to be on the retail
purchaser or ultimate consumer, precollected for convenience and
facility only. When such taxes are paid by any other person, such
payment shall be considered as an advance payment and shall be
added to the price of the cigarettes and recovered from the ultimate
consumer or user. Distributors, wholesalers, or retailers may state the
amount of the tax separately from the price of such cigarettes on all
price display signs, sales or delivery slips, bills, and statements
which advertise or indicate the price of such cigarettes. (Formerly: Acts 1947, c.222, s.1; Acts 1963(ss), c.37, s.1.) As
amended by P.L.2-1988, SEC.20.
IC 6-7-1-2 "Cigarette" defined
Sec. 2. Unless the context requires otherwise, "cigarette" shall
mean and include any roll for smoking made wholly or in part of
tobacco, irrespective of size or shape and irrespective of tobacco
being flavored, adulterated, or mixed with any other ingredient,
where such roll has a wrapper or cover made of paper or any other
material. Provided the definition in this section shall not be construed
to include cigars. Excepting where context clearly shows that
cigarettes alone are intended, the term "cigarettes" shall mean and
include cigarettes, cigarette papers or wrappers, and tubes upon
which 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, "individual
package" shall mean and include every individual packet, box or
other container used to contain or to convey cigarettes to the
consumer. 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, means
and 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 corporation
or any other political subdivision of the state engaged in private or
proprietary activities or business, estate, trust, or any other group or
combination acting as a unit, and the plural as well as the singular
number, unless the intention to give a more limited meaning is
disclosed 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 duly
authorized assistants and employees. (Formerly: Acts 1947, c.222, s.5; Acts 1963(ss), c.37, s.2.) As
amended by Acts 1980, P.L.61, SEC.12.
IC 6-7-1-6 "Distributor" defined
Sec. 6. Unless the context requires otherwise, "distributor" shall
mean and include every person who sells, barters, exchanges, or
distributes cigarettes in the state of Indiana to retail dealers for the
purpose of resale, or who purchases cigarettes directly from a
manufacturer of cigarettes, or who purchases for resale cigarettes
directly from a manufacturer of cigarettes, or from a wholesaler,
jobber, or distributor outside of the state of Indiana who is not a
distributor 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 any
person for any purpose other than resale, irrespective of quantity or
amount, 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 a
cigarette 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 mean
the stamps printed, manufactured, or made by authority of the
department, as provided in this chapter, and issued, sold, or
circulated by it and by the use of which the tax levied under this
chapter is paid, or any impression, indicium, or character imprinted
upon individual packages of cigarettes, cigarette papers, or tubes by
a metered stamping machine or other device such as may be
authorized by the department for use by the holder of a certificate
under the provisions of this chapter and by the use of which the tax
levied 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, "counterfeit
stamp" shall mean any stamp, label, print, indicium, or character
which evidences, or purports to evidence the payment of any tax
levied by this chapter, and which stamp, label, print, indicium, or
character has not been printed, manufactured, or made by authority
of the department as provided in this chapter, and issued, sold, or
circulated 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, "drop
shipment" shall mean any shipment billed to one other than the
person 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 be
collected and paid as provided in this chapter, upon the sale,
exchange, bartering, furnishing, giving away, or otherwise disposing
of 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 hundred
seventy-five thousandths cents ($0.04975) per individual
cigarette.
(2) On cigarettes weighing more than three (3) pounds per
thousand (1,000), a tax at the rate of six and six hundred twelve
thousandths cents ($0.06612) per individual cigarette, except
that if any cigarettes weighing more than three (3) pounds per
thousand (1,000) shall be more than six and one-half (6 1/2)
inches in length, they shall be taxable at the rate provided in
subdivision (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 or
prepared for the purpose of making cigarettes, which are sold,
exchanged, bartered, given away, or otherwise disposed of within the
state of Indiana (other than to a manufacturer of cigarettes for use by
him in the manufacture of cigarettes), the following taxes are
imposed, 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 one
hundred (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 or
fractional part thereof. (Formerly: Acts 1947, c.222, s.11; Acts 1963(ss), c.37, s.3; Acts
1965, 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 be
collected and paid as provided in this chapter, upon the use,
consumption, or possession for use of cigarettes within the state of
Indiana, taxes at the rates set forth and in the manner provided in
section 12 of this chapter. Provided, that the tax levied, assessed, and
imposed by this section shall not be applicable to the use,
consumption, or possession for use of cigarettes upon which the tax
levied, assessed, and imposed by the provisions of section 12 of this
chapter 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 taxes
imposed under this chapter on:
(1) cigarettes, where the carrier takes possession of the
cigarettes because they were damaged or they were not accepted
by 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 chapter
shall be paid and the payment thereof evidenced by the purchase of
stamps and by affixing the same to the individual packages, cigarette
papers, wrappers, and tubes and duly cancelling said stamps, as
provided in this chapter, but there shall be no further tax assessed,
imposed, or collected by virtue of this chapter upon the sale or use
of any package of cigarettes, cigarette papers, wrappers, or tubes
upon which said stamps have been previously affixed as provided by
this 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 enforce
chapter; salaries and expenses; powers
Sec. 15. (a) The department is the official agent of the state for the
administration and enforcement of this chapter. A sufficient sum to
pay salaries and expenses is appropriated to the department out of the
monies received by virtue of this chapter.
(b) The department may issue registration certificates, upon the
terms and conditions provided in this chapter, and may revoke or
suspend the same upon the violation of this chapter by the holder of
such a certificate.
(c) The department may apply for membership in the National
Tobacco Tax Association.
(d) The department may design and have printed or manufactured
stamps of sizes and denominations to be affixed to each individual
package. The stamps shall be firmly affixed on each individual
package in such a manner that the stamps can not be removed
without being mutilated or destroyed; however, the department may
by regulation designate some other manner for cancelation of stamps.
In addition to the stamps, the department may by rules and
regulations authorize distributors to use metered stamping machines
or other devices which will imprint distinctive indicia evidencing the
payment of the tax upon each individual package. The machines shall
be constructed in such a manner as will accurately record or meter
the number of impressions or tax stamps made. The tax meter
machines or other devices shall be kept available at all reasonable
times for inspection by the department, and the machines shall be
maintained in proper operating condition. A person who knowingly
tampers with the printing or recording mechanism of such a machine
commits 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 county
applies to the department and fulfills the bonding requirements
established by the department, the department shall approve at least
one (1) financial institution in each county to recharge the metered
stamping 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 a
registration certificate. Application for a registration certificate shall
be made in writing upon forms prescribed by the department and
shall be signed and verified by the distributor.
(b) The registration certificate shall be issued only upon payment
to 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 of
credit:
(1) in a form and with a surety or financial institution approved
by 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 the
registration certificate by reason of the violation of any of the
provisions of this chapter.
(c) All registration certificates shall be personal, nontransferable,
and valid for one (1) year from date of issuance unless revoked or
suspended 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 for
each place of business where he operates as a distributor (as defined
by 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 for
which it is issued.
(f) Any person who changes his or her place of business shall
return his or her certificate and the department shall issue a new
certificate for the new place of business free of charge.
(g) Any certificate issued under this section may be surrendered
to the department at any time prior to its expiration, and the
department shall refund an amount of money which bears the same
proportion to the fee originally paid therefor as the unexpired period
of the permit bears to one (1) year. However, no refund shall be
allowed in the event that a certificate is revoked as provided in this
chapter, and no refund shall be made in excess of four hundred
dollars ($400). (Formerly: Acts 1947, c.222, s.15; Acts 1969, c.324, s.1.) As
amended 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 of
revenue stamps; execution of bond
Sec. 17. (a) Distributors who hold certificates and retailers shall
be agents of the state in the collection of the taxes imposed by this
chapter and the amount of the tax levied, assessed, and imposed by
this chapter on cigarettes sold, exchanged, bartered, furnished, given
away, or otherwise disposed of by distributors or to retailers.
Distributors who hold certificates shall be agents of the department
to affix the required stamps and shall be entitled to purchase the
stamps from the department at a discount of one and two-tenths cents
($0.012) per individual package of cigarettes as compensation for
their labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps 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 of
credit satisfactory to the department, in an amount not less than
the 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 such
distributor may be liable; and
(3) payment for the revenue stamps must be made by electronic
funds transfer (as defined in IC 4-8.1-2-7).
The bond or letter of credit, conditioned to secure payment for the
stamps, shall be executed by the distributor as principal and by a
corporation duly authorized to engage in business as a surety
company or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b). (Formerly: Acts 1947, c.222, s.16; Acts 1963(ss), c.37, s.4; Acts
1965, 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, in
determining the amount to pay for stamps purchased under this
chapter, a distributor is entitled to a credit against the cost of stamps
purchased 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 a
retailer;
(2) resulted from a transfer of cigarettes to a retailer in which
the distributor did not collect the tax imposed by this chapter
from the retailer; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code after
December 31, 2006.
(b) If a distributor claims a credit under subsection (a) and
subsequently collects all of the associated receivable, the distributor
shall remit the entire amount of the credit previously claimed under
subsection (a) to the department within thirty (30) days of collection.
(c) If a distributor claims a credit under subsection (a) and
subsequently collects part of the associated receivable, the distributor
shall remit the amount determined under STEP SIX of the following
formula to the department within thirty (30) days after collection:
STEP ONE: Determine the part of the associated receivable
before collection that is attributable to the taxable price of the
products subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivable
before collection that is attributable to the amount paid by the
distributor for the stamps affixed to the products that were
transferred 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 entitled
under subsection (a) exceeds the cost of the stamps that the
distributor seeks to purchase, the remainder of the credit may be
applied to future purchases of stamps by the distributor. For any
uncollectible receivable used to establish a credit under subsection
(a), the amount of the credit that is available to be applied to a
purchase of stamps is the total amount of the credit determined under
subsection (a) reduced by the sum of partial credits applied by the
distributor to previous purchases of stamps.
(e) 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 credit under this section is not assignable to an
individual or entity that is not part of the same affiliated group as the
assignor. 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 taxed
under this chapter, shall cause each individual package to have the
requisite denomination and amount of stamps firmly affixed. Every
retailer, upon receipt of cigarettes not having the proper amount of
stamps firmly affixed, to each individual package, or stamped by a
meter stamping machine, by a distributor shall stamp or firmly affix
stamps immediately on each individual package. Provided, however,
that any distributor engaged in interstate business, shall be permitted
to set aside such part of his stock as may be necessary for the
conduct of such interstate business without affixing the stamps
required by this chapter. Every distributor, at the time of shipping or
delivering any cigarettes, shall make a duplicate invoice, showing
complete details of each transaction, and shall retain the duplicate
subject to the inspection by the department or its agent. Every
distributor shall include with each shipment or delivery of cigarettes
an invoice showing complete details of the transactions. Every
retailer shall retain for not less than two (2) weeks the invoice
included with each shipment or delivery of cigarettes subject to
inspection by the department or its agent. A retailer may request a
duplicate 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 preserve
for three (3) years records and invoices, showing the purchase and
sale of all cigarettes. Such distributors shall also keep separate
invoices, and records of stamps purchased. All the aforementioned
records, invoices, and stocks of cigarettes and unused stamps on
hand shall be open to inspection by the department at all reasonable
times. Provided, however, that all distributors, within fifteen (15)
days after the first day of each month, shall file with the department
a report of all drop shipment sales made by them to other distributors
within this state during the preceding month, which report shall give
the name and address of the distributor, the kind and quantity of the
sales, and their dates of delivery. Provided, further, however, that
every distributor engaged in interstate business shall, within ten (10)
days after the first day of each month, file with the department a
report of all such interstate sales made during the preceding month,
which report shall give the name and address of the person to whom
sold, the kind and quantity of the sales, and their dates of delivery.
(b) All drop shipments made by manufacturers of cigarettes
within the state of Indiana must be shipped and billed through a
regularly licensed distributor licensed by the state of Indiana (as
defined 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 delivery
ticket requirement; exceptions
Sec. 19.5. A person who transports cigarettes which do not bear
an Indiana tax stamp over Indiana highways shall carry invoices or
delivery tickets for those cigarettes containing the following
information:
(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 tax
imposed on those cigarettes under this chapter.
However, this section does not apply to licensed distributors, to
common carriers, or to employees of the state or federal government
who are performing their official duties in the enforcement of this
chapter. 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 or
offers for sale an individual package, having affixed thereto any
fraudulent, spurious, imitation, or counterfeit stamp, or stamp which
has been previously affixed, commits a Class C felony. A person who
knowingly affixes to an individual package either a fraudulent,
spurious, imitation, or counterfeit stamp or a stamp which has
previously been affixed to an individual package commits a Class C
felony. (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 who
recklessly:
(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 and
accessibility 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 this
chapter for which no other provision for punishment has been made
commits 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 stamps
affixed; seizure; forfeiture; redemption penalty; offenses;
exceptions
Sec. 24. (a) Whenever the department discovers any cigarettes
which are subject to tax under this chapter and upon which the tax
has not been paid or the stamps affixed as required, it may seize and
take possession of the cigarettes together with any vending machine
or receptacle in which they are held for sale. The seized cigarettes,
vending machine, or receptacle, not including money contained in
the vending machine or receptacle, shall be forfeited to the state. The
department may, within a reasonable time after the seizure:
(1) sell the forfeited cigarettes and vending machines or
receptacles at public auction, but the department shall require
the purchaser to affix the proper amount of the stamps to the
cigarettes upon delivery to the purchaser;
(2) permit the person from whom the cigarettes were seized to
redeem the cigarettes and any vending machine or receptacle
seized therewith, by the payment of the tax due together with a
penalty of fifty percent (50%) and the costs incurred in the
proceeding; or
(3) destroy the confiscated cigarettes and vending machine or
receptacle.
(b) The confiscation, destruction, sale, or redemption of cigarettes
does not relieve any person of criminal penalties imposed for
violation of this chapter.
(c) Any person who sells or holds for sale any packages of
cigarettes not bearing Indiana tax stamps commits a Class A
misdemeanor. This subsection does not apply to distributors or to
employees 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 any
person other than a distributor, a common carrier, or an employee of
the state or federal government performing his official duties in the
enforcement of this chapter constitutes prima facie evidence that the
cigarettes 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 has
previously been convicted of a misdemeanor for possession or sale
of unstamped cigarettes commits a Class D felony. (Formerly: Acts 1947, c.222, s.23; Acts 1969, c.324, s.2.) As
amended 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 any
cigarettes are being kept, sold, offered for sale, or given away in
violation of this chapter, an officer of the department may make
affidavit of such fact, describing the place or thing to be searched
before a court of competent jurisdiction, and the judge thereof shall
issue a search warrant directed to the sheriff, constable, police
officer, or authorized agent of the department commanding him to
search any place or vehicle that may be designated in the affidavit
and search warrant, and to seize any cigarettes so possessed and to
hold the same, and to arrest the person in control or possession of the
same. If upon the return of the warrant it shall appear that cigarettes
were 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 stamps
have been affixed have become mutilated, or otherwise unfit for use,
distributors shall notify the department, and, if an investigation
discloses 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 the
distributor who purchased such stamps, and the department shall then
refund 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 collected
under this chapter shall be deposited in the following manner:
(1) Four and twenty-two hundredths percent (4.22%) of the
money shall be deposited in a fund to be known as the cigarette
tax fund.
(2) Six-tenths percent (0.6%) of the money shall be deposited
in a fund to be known as the mental health centers fund.
(3) Fifty-four and five-tenths percent (54.5%) of the money
shall be deposited in the state general fund.
(4) Five and forty-three hundredths percent (5.43%) of the
money shall be deposited into the pension relief fund
established in IC 5-10.3-11.
(5) Twenty-seven and five hundredths percent (27.05%) of the
money shall be deposited in the Indiana check-up plan trust
fund established by IC 12-15-44.2-17.
(6) Two and forty-six hundredths percent (2.46%) of the money
shall be deposited in the state general fund for the purpose of
paying appropriations for Medicaid_Current Obligations, for
provider reimbursements.
(7) Five and seventy-four hundredths percent (5.74%) of the
money shall be deposited in the state retiree health benefit trust
fund 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 the
end of a fiscal year does not revert to the state general fund.
However, if in any fiscal year, the amount allocated to a fund under
subdivision (1) or (2) is less than the amount received in fiscal year
1977, then that fund shall be credited with the difference between the
amount allocated and the amount received in fiscal year 1977, and
the allocation for the fiscal year to the fund under subdivision (3)
shall be reduced by the amount of that difference. Money deposited
under subdivisions (6) through (7) may not be used for any purpose
other 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 natural
resources; 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 not
more than twenty-one percent (21%) of the money appropriated to it
under this section for:
(1) flood control and water resource projects, including
multiple-purpose reservoirs; and
(2) applied research related to technical water resource
problems.
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%) of
the money appropriated to it under this section to construct,
reconstruct, rehabilitate, or repair general conservation facilities or
to acquire land.
(d) The department shall use at least forty-three percent (43%) of
the money appropriated to the department under this section for soil
conservation 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 fund
shall be deposited in the clean water Indiana fund established by
IC 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 governmental
entities; allocation; disposition
Sec. 30.1. (a) Two-thirds (2/3) of the money in the cigarette tax
fund is annually appropriated to the cities and towns of this state and
to certain local governmental entities.
(b) The amount which is allocated to each city or town under this
section 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 the
city or town, and the denominator of which is the total
population of all the cities and towns of Indiana.
(c) The auditor of state shall calculate and distribute the amount
allocated to each city or town under this section on or before June 1
and December 1 of each year. To make these semiannual
distributions, the auditor of state shall issue warrants drawn on the
cigarette tax fund to the officials designated in subsection (d) or (e).
(d) For a consolidated city, or a city or town which is located in
the same county as the consolidated city, the auditor of state shall
issue a warrant for:
(1) three-fourteenths (3/14) of the money allocated to the city
or town under subsection (b) to the fiscal officer of the city or
town; and
(2) the remaining eleven-fourteenths (11/14) of the money to
the treasurer of that county.
The fiscal officer of the city or town shall deposit the money
distributed to him under this subsection in the city's or town's general
fund. The county treasurer shall annually deposit three hundred fifty
thousand dollars ($350,000) which he receives under this subsection
in the capital improvement bond fund of the county. The remainder
of the money which the county treasurer receives under this
subsection is appropriated to the department of transportation of the
consolidated city. The county treasurer shall serve as custodian of the
money so appropriated to the department.
(e) For a city or town which is not located in the same county as
a consolidated city, the auditor of state shall issue a warrant for the
total amount allocated to the city or town under subsection (b) to the
fiscal officer of the city or town. The fiscal officer shall deposit
three-fourteenths (3/14) of the money in the city's or town's general
fund, and he shall deposit the remaining eleven-fourteenths (11/14)
of the money in the city's or town's cumulative capital improvement
fund. 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 state
department of health one hundred ninety thousand dollars ($190,000)
from the state general fund for the purpose of providing
supplementary funding for the WIC (Women, Infants, and Children)
program (42 U.S.C. 1786) in Indiana. The appropriation shall be
administered by the nutrition division of the state department of
health and shall be allocated to fund local WIC programs.
(b) There is annually appropriated to the state department of
health one hundred ninety thousand dollars ($190,000) from the state
general fund for the purpose of providing supplementary funding for
maternal and child health services. The appropriation shall be
administered by the maternal and child health division of the state
department of health. The funds appropriated under this subsection
must be used to:
(1) supplement federal Maternal and Child Health Services
Block Grant funds provided under 42 U.S.C. 701 et seq. for the
purpose of establishing and maintaining programs of pregnancy
care in underserved areas of Indiana; and
(2) provide funding for the hospital and medical expenses
connected with the delivery of children whose parents are
eligible for services that may be reimbursed with funds
provided under the federal Maternal and Child Health Services
Block Grant Program (42 U.S.C. 701 et seq.).
(c) There is annually transferred to the school age child care
project fund established under IC 12-17-12-7 from the state general
fund five hundred fifty thousand dollars ($550,000) for carrying out
the 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 health
maintenance fund established by IC 16-46-10 two million four
hundred thirty thousand dollars ($2,430,000) from the state general
fund to provide funds for annual distribution to local boards of health
in accordance with IC 16-46-10-2 to enable local boards of health to
provide basic health services.
(b) The state department of health may retain annually a
maximum of fifty thousand dollars ($50,000) of the total
appropriation to the local health maintenance fund under subsection
(a) to pay administrative expenses incurred by the state department
of 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 of
each town shall, by ordinance or resolution, establish a cumulative
capital improvement fund for the city or town. Except as otherwise
provided in subsection (c), the city or town may only use money in
its 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, or
repair:
(A) computer hardware;
(B) computer software;
(C) wiring and computer networks; and
(D) communications access systems used to connect with
computer networks or electronic gateways;
(5) to pay for the services of full-time or part-time computer
maintenance employees;
(6) to conduct nonrecurring in-service technology training of
unit employees;
(7) to undertake Internet application development;
(8) to retire general obligation bonds issued by the city or town
for 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 is
appropriated by the fiscal body of the city or town.
(b) The money in the city's or town's cumulative capital
improvement 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's
or 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; use
of money by division
Sec. 32.1. (a) The money in the mental health centers fund is
annually 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 community
mental health centers; and
(2) to provide grants for a partial facility if there is a reasonable
assurance that the facility will provide community mental health
services within five (5) years after it provides any partial
service 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 of
any tax imposed by this chapter. It shall be unlawful for any person
to advertise, print, publish, or circulate through or by use of any
medium of communication any advertisement or offer to sell
cigarettes within or into the state of Indiana, in which it is stated or
implied that any taxes provided for in this chapter will not or need
not 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 any
false report or false statement in any report, with intent to defraud the
state or to evade the payment of the tax, or any part thereof, imposed
by this chapter. (Formerly: Acts 1947, c.222, s.28a; Acts 1969, c.324, s.3.) As
amended by Acts 1978, P.L.2, SEC.649.
