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 an Internet web site, 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; or
(3) transports closed system cartridges to retail dealers in Indiana for resale by those retail dealers.
(c) A consumer who purchases untaxed closed system cartridges from a distributor or retailer is liable for the tax imposed under subsection (a).
As added by P.L.165-2021, SEC.108. Amended by P.L.137-2022, SEC.69.
Structure Indiana Code
Chapter 2. Tobacco Products Tax
6-7-2-0.1. "Actual Cost"; "Actual Cost List"
6-7-2-0.2. "Alternative Nicotine Product"
6-7-2-0.5. "Closed System Cartridge"
6-7-2-0.7. "Consumable Material"
6-7-2-7.5. Tax on Distribution of Closed System Cartridges; Rate; Time of Imposition
6-7-2-7.7. Sale of Taxable Products in Indiana by Remote Sellers
6-7-2-8. Distributor's License
6-7-2-9. Change of Location; License Reissuance
6-7-2-9-b. Change of Location; License Reissuance
6-7-2-10. Surrender of License; Refund
6-7-2-11. Revocation or Suspension of License
6-7-2-11.5. Department May Refuse to Issue or Renew a License; Reasons
6-7-2-12. Electronic Filing of Returns and Remitting of Taxes
6-7-2-12-b. Electronic Filing of Returns and Remitting of Taxes
6-7-2-13. Collection Allowance
6-7-2-13-b. Collection Allowance
6-7-2-14. Credit or Refund of Taxes
6-7-2-14-b. Credit or Refund of Taxes
6-7-2-14.5. Deduction for Certain Receivables
6-7-2-15. Registration of Manufacturer, Importer, Broker, or Shipper Distributing to Distributor
6-7-2-16. Manufacturer, Importer, Broker, or Shipper; Proof of Distributions
6-7-2-18. Distribution Without a License; Offense
6-7-2-19. Manufacturer Noncompliance; Offense
6-7-2-20. Record Keeping Violations
6-7-2-20-b. Record Keeping Violations
6-7-2-21. Distributor Offenses
6-7-2-21-b. Distributor or Remote Seller Offenses
6-7-2-23. Federal Sales; Exemption
6-7-2-24. Civil Penalty for Purchase of Taxable Products From a Distributor That Is Not Licensed