§ 6-7-1-17 — Distributors as agents of state for collection of tax; purchase of revenue stamps; execution of bond

(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 two cents
($0.02) 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;
P.L.191-2016, SEC.6; P.L.201-2023, SEC.109.