2023 Indiana Code
Title 6. Taxation
Article 7. Tobacco Taxes
Chapter 2. Tobacco Products Tax
6-7-2-7-b. Tax on Distribution of Tobacco Products and Alternative Nicotine Products; Rate; Time of Imposition; Findings by General Assembly
Note: This version of section effective 1-1-2024. See also preceding version of this section, effective until 1-1-2024.
Sec. 7. (a) A tax is imposed on the distribution of tobacco products in Indiana at the following rates:
(1) Twenty-four percent (24%) of the wholesale price of tobacco products other than moist snuff.
(2) For moist snuff, forty cents ($0.40) per ounce, and a proportionate tax at the same rate on all fractional parts of an ounce. If the tax calculated for a fractional part of an ounce carried to the third decimal place results in the numeral in the third decimal place being greater than four (4), the amount of the tax shall be rounded to the next additional cent.
(3) For cigars twenty-four percent (24%) of the wholesale price of a cigar. However the tax imposed per cigar shall not exceed one dollar ($1).
(b) A tax is imposed on the distribution of alternative nicotine products in Indiana at a rate of forty cents ($0.40) per ounce, and a proportionate tax at the same rate on all fractional parts of an ounce, calculated based upon the product weight as listed by the manufacturer. If the tax calculated for a fractional part of an ounce carried to the third decimal place being greater than four (4), the amount of the tax shall be rounded to the next additional cent.
(c) The distributor of the tobacco products or alternative nicotine products is liable for the tax imposed under subsections (a) or (b). The tax is imposed at the time the distributor:
(1) brings or causes tobacco products or alternative nicotine products to be brought into Indiana for distribution;
(2) manufactures tobacco products or alternative nicotine products in Indiana for distribution;
(3) transports tobacco products or alternative nicotine products to retail dealers in Indiana for resale by those retail dealers; or
(4) first receives the tobacco products or alternative nicotine products in Indiana in the case of a distributor or distributor transactions.
(d) The Indiana general assembly finds that the tax rate on smokeless tobacco should reflect the relative risk between such products and cigarettes.
(e) A consumer who purchases untaxed tobacco products or alternative nicotine products from a distributor or retailer is liable for the tax imposed under subsections (a) or (b).
As added by P.L.96-1987, SEC.7. Amended by P.L.192-2002(ss), SEC.138; P.L.234-2007, SEC.201; P.L.172-2011, SEC.83; P.L.205-2013, SEC.129; P.L.165-2021, SEC.107; P.L.137-2022, SEC.68; P.L.236-2023, SEC.91.
