§ 6-7-1-1 — Purpose; liability for tax; separation of price and tax

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.