Introduced Version






HOUSE BILL No. 1457

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-7-1.

Synopsis: Cigarette tax. Increases the cigarette tax by $0.25 per pack. Reduces the distributor's discount for purchasing cigarette tax stamps by an amount proportionate to the increase in the tax rate.

Effective: July 1, 2001.





Hasler




    January 11, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1457



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-7-1-12; (01)IN1457.1.1. -->     SECTION 1. IC 6-7-1-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 12. (a) The following taxes are imposed, and shall be collected and paid as provided in this chapter, upon the sale, exchange, bartering, furnishing, giving away, or otherwise disposing of cigarettes within the state of Indiana:
        (1) On cigarettes weighing not more than three (3) pounds per thousand (1,000), a tax at the rate of seven hundred seventy-five thousandths of a cent ($0.00775) two and twenty-five thousandths of a cent ($0.02025) per individual cigarette.
        (2) On cigarettes weighing more than three (3) pounds per thousand (1,000), a tax at the rate of one and three-hundredths of a cent ($0.0103) two and twenty-eight hundredths of a cent ($0.0228) per individual cigarette, except that if any cigarettes weighing more than three (3) pounds per thousand (1,000) shall be more than six and one-half (6 1/2) inches in length, they shall be taxable at the rate provided in subdivision (1), counting each two and three-fourths (2 3/4) inches (or fraction thereof) as a

separate cigarette.
    (b) Upon all cigarette papers, wrappers, or tubes, made or prepared for the purpose of making cigarettes, which are sold, exchanged, bartered, given away, or otherwise disposed of within the state of Indiana (other than to a manufacturer of cigarettes for use by him in the manufacture of cigarettes), the following taxes are imposed, and shall be collected and paid as provided in this chapter:
        (1) On fifty (50) papers or less, a tax of one-half cent ($0.005).
        (2) On more than fifty (50) papers but not more than one hundred (100) papers, a tax of one cent ($0.01).
        (3) On more than one hundred (100) papers, one-half cent ($0.005) for each fifty (50) papers or fractional part thereof.
        (4) On tubes, one cent ($0.01) for each fifty (50) tubes or fractional part thereof.

SOURCE: IC 6-7-1-17; (01)IN1457.1.2. -->     SECTION 2. IC 6-7-1-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 17. (a) Distributors who hold certificates and retailers shall be agents of the state in the collection of the taxes imposed by this chapter and the amount of the tax levied, assessed, and imposed by this chapter on cigarettes sold, exchanged, bartered, furnished, given away, or otherwise disposed of by distributors or to retailers. Distributors who hold certificates shall be agents of the department to affix the required stamps and shall be entitled to purchase the stamps from the department at a discount of four one and one-half percent (4%) (1.5%) of the amount of the tax stamps purchased, as compensation for their labor and expense.
    (b) The department may permit distributors who hold certificates and who are admitted to do business in Indiana to pay for revenue stamps within thirty (30) days after the date of purchase. However, the privilege is extended upon the express condition that a bond or letter of credit satisfactory to the department, in an amount not less than the sales price of the stamps, is filed with the department, and proof of payment is made of all local property, state income, and excise taxes for which any such distributor may be liable. The bond or letter of credit, conditioned to secure payment for the stamps, shall be executed by the distributor as principal and by a corporation duly authorized to engage in business as a surety company or financial institution in Indiana.