§ 6-7-2-7.5 — Tax on distribution of closed system cartridges; rate; time of imposition

Indiana § 6-7-2-7.5

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

Text

Note: This version of section amended by P.L.205-2025, SEC.16.
See also following version of this section amended by P.L.213-2025,
SEC.88.
Sec. 7.5. (a) A tax is imposed on the distribution of
closed system cartridges in Indiana at the rate of fifteen percent (15%)
of the wholesale price of the closed system cartridge. If a closed system
cartridge is sold in the same package as a vapor product device, the tax
imposed under this subsection shall only apply to the wholesale price
of the closed system cartridge if the wholesale cost of the closed system
cartridge can be isolated from the vapor product device on the invoice.
(b) The distributor of closed system cartridges, including a person
that sells closed system cartridges through a website, is liable for the
tax imposed under subsection (a). The tax is imposed at the time the
distributor:
(1) brings or causes closed system cartridges to be brought into
Indiana for distribution;
(2) manufactures closed system cartridges in Indiana for
distribution;
(3) transports closed system cartridges to retail dealers in Indiana
for resale by those retail dealers; or
(4) first receives the closed system cartridges in Indiana in the
case of distributor to distributor transactions.
(c) A consumer who purchases untaxed closed system cartridges
from a distributor or retailer is liable for the tax imposed under
subsection (a).

Legislative History

As added by P.L.165-2021, SEC.108. Amended by P.L.137-2022, SEC.69; P.L.1-2025, SEC.99; P.L.205-2025, SEC.16.