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.
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Terms Used In Indiana Code 6-7-2-7.5
- closed system cartridge: means a sealed, prefilled, and disposable container of consumable material in which the container is inserted directly into a vapor product, and is not intended to be opened or accessible through customary or reasonably foreseeable handling or use. See Indiana Code 6-7-2-0.5
- distributor: means a person who:
Indiana Code 6-7-2-2
- person: has the meaning set forth in IC 6-7-1-4. See Indiana Code 6-7-2-3
- vapor product: has the meaning set forth in IC 6-7-4-8. See Indiana Code 6-7-2-5.5
- wholesale price: means the net price shown on an invoice and at which the manufacturer of the tobacco products sells tobacco products to distributors, excluding any discount or other reduction that is not shown on the invoice. See Indiana Code 6-7-2-6
(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.
