Sec. 9. (a) An excise tax, known as the electronic cigarette tax, is imposed on the retail sale of consumable material and vapor products in Indiana.

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Terms Used In Indiana Code 6-7-4-9

  • consumable material: means any liquid solution or other material used in an open system container that is depleted as the vapor product is used. See Indiana Code 6-7-4-2
  • department: means the department of state revenue and includes its employees and agents. See Indiana Code 6-7-4-3
  • gross retail income: has the meaning set forth in Indiana Code 6-7-4-4
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Month: means a calendar month, unless otherwise expressed. See Indiana Code 1-1-4-5
  • person: has the meaning set forth in IC 6-7-1-4. See Indiana Code 6-7-4-6
  • retail dealer: means a person engaged in the selling of consumable material, vapor products, or both to ultimate consumers. See Indiana Code 6-7-4-7
     (b) The electronic cigarette tax equals fifteen percent (15%) of the gross retail income received by the retail dealer for the sale.

     (c) The person who acquires consumable material or vapor products in a retail transaction is liable for the tax on the transaction, and, except as otherwise incorporated in this chapter, shall pay the tax to the retail dealer as a separate added amount to the consideration in the transaction. A retail dealer that either:

(1) has a physical presence in Indiana, as described in IC 6-2.5-2-1(c); or

(2) meets the threshold in IC 6-2.5-2-1(d);

shall collect and remit the tax as an agent for the state.

     (d) If the tax is not collected by the retail dealer, the consumer is responsible to remit the tax to the department. A retail dealer that is required to collect and remit tax under this chapter is jointly and severally liable for uncollected tax absent proof of exemption or payment by the purchaser.

     (e) Before the fifteenth day of each month, each retail dealer liable for the collection and remittance of the tax imposed by this chapter shall:

(1) file a return with the department that includes all information required by the department including, but not limited to:

(A) the name of the retail dealer;

(B) the address of the retail dealer; and

(C) the certificate number of the retail dealer’s electronic cigarette retail dealer’s certificate; and

(2) pay the tax for which it is liable under this chapter for the preceding month.

All returns required to be filed and taxes required to be paid under this chapter must be made in an electronic format prescribed by the department.

     (f) All of the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration apply to the imposition and administration of the tax imposed under this section, except to the extent such provisions are in conflict or inconsistent with the specific provisions of this chapter.

     (g) A marketplace facilitator (as defined in IC 6-2.5-1-21.9) who is considered a retail merchant under IC 6-2.5-4-18 for a transaction to which this chapter applies shall collect and remit electronic cigarette taxes imposed on the retail transaction.

As added by P.L.165-2021, SEC.119. Amended by P.L.118-2024, SEC.17.

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