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IC 6-7-3
Chapter 3. Controlled Substance Excise Tax
IC 6-7-3-1
"Controlled substance" defined
Sec. 1. As used in this chapter, "controlled substance" has the
meaning set forth in IC 35-48-1-9.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-2
"Delivery" defined
Sec. 2. As used in this chapter, "delivery" has the meaning set
forth in IC 35-48-1-11.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-3
"Department" defined
Sec. 3. As used in this chapter, "department" refers to the
department of state revenue.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-4
"Manufacture" defined
Sec. 4. As used in this chapter, "manufacture" has the meaning set
forth in IC 35-48-1-18.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-4.1
"Marijuana" defined
Sec. 4.1. As used in this chapter, "marijuana" has the meaning set
forth in IC 35-48-1-19.
As added by P.L.65-1996, SEC.1.
IC 6-7-3-5
Imposition of tax; exemption
Sec. 5. The controlled substance excise tax is imposed on
controlled substances that are:
(1) delivered;
(2) possessed; or
(3) manufactured;
in Indiana in violation of IC 35-48-4 or 21 U.S.C. 841 through 21
U.S.C. 852. The tax does not apply to a controlled substance that is
distributed, manufactured, or dispensed by a person registered under
IC 35-48-3.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-6
Amount of tax; determination by gram weight; substance in
possession
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Sec. 6. (a) The amount of the controlled substance excise tax is
determined by:
(1) the weight of the controlled substance; or
(2) the pill, capsule, hit, rock, or dosage when a controlled
substance is delivered, possessed, or manufactured in that form.
(b) The amount of controlled substance excise tax is as follows:
(1) On each gram of a schedule I, II, or III controlled substance,
except marijuana, forty dollars ($40) for each gram and a
proportionate amount for each fraction of a gram.
(2) On each gram of marijuana, three dollars and fifty cents
($3.50) for each gram and a proportionate amount for each
fraction of a gram.
(3) On each pill, capsule, hit, rock, or dosage of a schedule I, II,
or III controlled substance, forty dollars ($40).
(4) On each gram of a schedule IV controlled substance, twenty
dollars ($20) for each gram and a proportionate amount for each
fraction of a gram.
(5) On each pill, capsule, hit, rock, or dosage of a schedule IV
controlled substance, twenty dollars ($20).
(6) On each gram of a schedule V controlled substance, ten
dollars ($10) for each gram and a proportionate amount for each
fraction of a gram.
(7) On each pill, capsule, hit, rock, or dosage of a schedule V
controlled substance, ten dollars ($10).
(c) A gram of a controlled substance is measured by the weight of
the substance in possession whether pure, impure, or diluted. A
quantity of a controlled substance is diluted if the substance consists
of a detectable quantity of pure controlled substance and any
excipient, fillers, or waste.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.2.
IC 6-7-3-7
Delivery of substance to law enforcement officer; tax liability
Sec. 7. A person who delivers a controlled substance to a law
enforcement officer is not relieved of the duty to pay taxes under this
chapter.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-8
Payment of tax due on violation of state or federal laws;
nondisclosure of identity of taxpayer
Sec. 8. The tax imposed under this chapter is due when the person
receives delivery of, takes possession of, or manufactures a controlled
substance in violation of IC 35-48-4 or 21 U.S.C. 841 through 21
U.S.C. 852. A person may not be required to reveal the person's
identity at the time the tax is paid.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-9
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Payment of tax not conferring criminal immunity; use of
confidential information
Sec. 9. The payment of the tax under this chapter does not make
the buyer immune from criminal prosecution. However, confidential
information acquired by the department may not be used to initiate
or facilitate prosecution for an offense other than an offense based on
a violation of this chapter.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-10
Issuance of evidence of payment; statement; term of validity;
possession of taxpayer
Sec. 10. (a) The department shall issue evidence of payment of the
tax to the person paying the tax. The evidence of payment must
include a statement stating the following:
"THIS EVIDENCE OF PAYMENT DOES NOT LEGALIZE
T H E DE L I V E R Y , SA L E , P O S S ESSI O N , O R
MANUFACTURE OF A CONTROLLED SUBSTANCE. THE
UNAUTHORIZED DELIVERY, SALE, POSSESSION, OR
MANUFACTURE OF A CONTROLLED SUBSTANCE IS A
CRIME.".
(b) The evidence of payment is valid for thirty (30) days after the
payment is received by the department. A person who receives
delivery of, takes possession of, or manufactures a controlled
substance must also have a valid evidence of payment in the person's
possession.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.3.
IC 6-7-3-11
Prohibited acts; failure or refusal to pay tax
Sec. 11. A person may not deliver, possess, or manufacture a
controlled substance subject to the tax under this chapter unless the
tax has been paid. A person who fails or refuses to pay the tax
imposed by this chapter is subject to a penalty of one hundred percent
(100%) of the tax in addition to the tax.
As added by P.L.50-1992, SEC.1. Amended by P.L.65-1996, SEC.4.
IC 6-7-3-12
Rules for enforcement of chapter; tax refund provisions
Sec. 12. The department may adopt rules under IC 4-22-2
necessary to enforce this chapter, including rules relating to the
refunding of taxes paid under this chapter.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-13
Jeopardy assessment; duties of department
Sec. 13. An assessment for the tax due under this chapter is
considered a jeopardy assessment. The department shall demand
immediate payment and take action to collect the tax due as provided
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by IC 6-8.1-5-3.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-14
Jeopardy assessments; secondary lien to seizure and forfeiture
provisions
Sec. 14. All jeopardy assessments issued for nonpayment of tax
shall be considered a secondary lien to the seizure and forfeiture
provisions of IC 16-42-20, IC 34-24-1, IC 34-24-2, and any federal
law.
As added by P.L.50-1992, SEC.1. Amended by P.L.2-1993, SEC.60;
P.L.1-1998, SEC.83; P.L.1-1999, SEC.17.
IC 6-7-3-15
Controlled substance tax fund; establishment; administration;
expenses; interest; reversion to general fund; annual appropriation
Sec. 15. (a) The controlled substance tax fund is established to
receive all the revenue collected by the department under this chapter.
(b) The fund shall be administered by the treasurer of state. Any
expenses incurred in administering the fund shall be paid from the
fund. Any interest earned on money in the fund shall be credited to
the fund.
(c) Any revenue remaining in the fund at the end of a state fiscal
year does not revert to the state general fund.
(d) Money in the fund is annually appropriated to cover the
department's administrative and enforcement expenses under this
chapter and to make the distributions required by this chapter.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-16
Controlled substance tax fund; awards and distributions;
prohibited uses; transfers to state drug free communities fund;
collections from assessments
Sec. 16. (a) The department may award up to ten percent (10%) of
the total amount collected from an assessment under this chapter to
any person who provides information leading to the collection of a
tax liability imposed under this chapter. An award made under this
subsection must be made before any other distributions under this
section.
(b) Whenever a law enforcement agency provides information
leading to the collection of a tax liability imposed under this chapter,
the department shall award thirty percent (30%) of the total amount
collected from an assessment to the law enforcement agency that
provided the information that resulted in the assessment. The law
enforcement agency shall use the money the agency receives under
this chapter to conduct criminal investigations. A law enforcement
agency may not receive an award under more than one (1) subsection.
(c) The department shall award ten percent (10%) of the amount
deposited in the fund during each month to the law enforcement
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training board to train law enforcement personnel.
(d) The department may use twenty percent (20%) of the amount
deposited in the fund during a state fiscal year to pay the costs of
administration and enforcement of this chapter.
(e) Awards may not be made under this chapter to the following:
(1) A law enforcement officer.
(2) An employee of the department.
(3) An employee of the Internal Revenue Service.
(4) An employee of the federal Drug Enforcement Agency.
(f) All the money deposited in the fund that is not needed for
awards or to cover the costs of administration under this chapter shall
be transferred to the state drug free communities fund established
under IC 5-2-10.
(g) An award made under subsection (a) or (b) shall be made on
the basis of collections from each individual assessment that resulted
from information supplied to the department by a person or law
enforcement agency.
(h) Money shall be considered collected under this section only
after all protest periods have expired or all appeals have been
adjudicated.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-17
Controlled substances tax fund; monthly distributions and
transfers; certification to state auditor; warrants
Sec. 17. (a) All distributions and transfers from the controlled
substance tax fund shall be paid monthly by the fifteenth of the
month following the month of collection.
(b) The department shall certify to the auditor of state the amount
to be distributed to each law enforcement agency that is entitled to
receive an award under section 16 of this chapter. The treasurer of
state shall make the distributions upon warrants issued by the auditor
of state.
As added by P.L.50-1992, SEC.1.
IC 6-7-3-18
Failure to pay as evidence in criminal sentencing order
Sec. 18. When sentencing a defendant following a prosecution for
delivery, possession, or manufacture of a controlled substance in
violation of IC 35-48-4, the court may consider evidence of the
accused's failure to pay the excise tax required by this chapter. If the
court finds that the defendant failed to pay the excise tax, the court
may order the department to commence collection proceedings for
the tax and any penalties, as part of the court's sentencing order.
As added by P.L.65-1996, SEC.5.
IC 6-7-3-19
Conditions on commencement of collection proceedings
Sec. 19. The department may not commence collection
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proceedings under this chapter unless the department:
(1) is ordered to do so by a court in the court's sentencing order
under section 18 of this chapter; or
(2) is notified in writing by the prosecuting attorney of the
jurisdiction where the offense occurred that the prosecuting
attorney does not intend to pursue criminal charges of delivery,
possession, or manufacture of the controlled substance that may
be subject to the tax required by this chapter.
As added by P.L.65-1996, SEC.6.
IC 6-7-3-20
Tax in addition to criminal penalties and forfeitures
Sec. 20. The excise taxes required by this chapter are intended to
be in addition to any criminal penalties under IC 35-48-4 and
forfeitures under IC 16-42-20, IC 34-24-1, or IC 34-24-2 (or
IC 34-4-30.1 or IC 34-4-30.5 before their repeal).
As added by P.L.65-1996, SEC.7. Amended by P.L.1-1998, SEC.84.
Indiana Code 2015
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