§ 6-7-2-8.5 — Remote seller distributor's license; application requirements; calculation of the tax; bond requirement

Indiana § 6-7-2-8.5

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

Text

5. (a) A remote seller, including a person that
sells taxable products through a website, must obtain a license under
this section before a remote seller can sell taxable products in Indiana.
The department shall issue licenses to applicants that qualify under this
section. A license issued under this section is valid for two (2) years
unless revoked or suspended by the department and is not transferable.
(b) An applicant for a license under this section must submit proof
to the department of the appointment of an agent for service of process
in Indiana if the applicant is:
(1) an individual whose principal place of residence is outside
Indiana; or
(2) a person, other than an individual, that has its principal place
of business outside Indiana.
(c) To obtain or renew a license under this section, a person must:
(1) submit an application that includes all information required by
the department;
(2) meet the economic threshold under IC 6-2.5-2-1(d) and obtain
a registered retail merchant certificate;
(3) attest that the person uses third party age verification
technology as described in subsection (d);
(4) pay a fee of twenty-five dollars ($25) at the time of
application; and
(5) at the time of application, post a bond, issued by a surety
company approved by the department, in an amount not less than
one thousand dollars ($1,000) and conditioned on the applicant's
compliance with this chapter.
(d) A remote seller must use age verification through an
independent, third party age verification service that compares:
(1) information available from a commercially available data base
(or aggregate of data bases) that are regularly used by government
agencies and businesses for the purpose of age and identity
verification; and
(2) personal information entered by the individual during the
ordering process;
that establishes that the individual is of the required minimum age.
(e) A remote seller that collects the tax imposed under section 7.7
of this chapter using the actual cost list method to calculate the tax
must provide to the department a certified actual cost list for each
individual product offered for sale in the subsequent calendar year. The
actual cost list shall be updated annually as new products are added to
a remote seller's inventory. New products must be added to the actual
cost list using the actual cost first paid for each individual product.
(f) If a business owns multiple entities that qualify as a remote
seller, a separate license must be obtained for each remote seller.
(g) Each license must be numbered, show the name and address of
the remote seller, and be kept at the place of business for which it is
issued.
(h) If the department determines that a bond provided by a licensee
is inadequate, the department may require a new bond in the amount
necessary to fully protect the state.
(i) A license issued under this section does not permit the remote
seller to sell cigarettes, vapor products, or other products subject to tax
under IC 6-7-1 or IC 6-7-4.

Legislative History

As added by P.L.137-2022, SEC.71. Amended by P.L.118-2024, SEC.16; P.L.205-2025, SEC.18.