§ 6-7-2-7 — Tax on distribution of tobacco products and alternative nicotine products; rate; time of imposition; findings by general assembly

Indiana § 6-7-2-7

• Jurisdiction: Indiana
• Art. 7: TOBACCO TAXES
• Ch. 2: Tobacco Products Tax

Text

Note: This version of section amended by P.L.205-2025, SEC.15.
See also following version of this section amended by P.L.213-2025,
SEC.87.
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 distributor to 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).

Legislative History

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; P.L.205-2025, SEC.15.