Citations Affected: IC 24-3.
Synopsis: Nonparticipating cigarette manufacturer fee. Imposes a
$0.025 fee on each cigarette sold by a manufacturer that does not
participate in the master settlement agreement. Deposits revenue
generated by the fee into the state general fund. Requires a
nonparticipating manufacturer that does not sell cigarettes in Indiana
to prepay the fee before selling cigarettes in Indiana. Requires a
distributor of nonparticipating manufacturer cigarettes to report certain
information to the department of state revenue.
Effective: July 1, 2004.
January 15, 2004, read first time and referred to Committee on Ways and Means.
January 22, 2004, reported _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulations; consumer sales and credit.
forth in IC 6-7-1-9.
Sec. 8. (a) The department shall impose a fee of two and one-half cents ($0.025) on each cigarette of a nonparticipating manufacturer on which the tax imposed by IC 6-7-1-12 is paid.
(b) The fee is in addition to any other fee or tax.
(c) The fee is imposed, collected, paid, and enforced at the same time and in the same manner as the tax imposed by IC 6-7-1-12.
Sec. 9. The department shall deposit all revenue generated from the fee into the state general fund.
Sec. 10. (a) This section applies to a nonparticipating manufacturer that does not sell cigarettes in Indiana.
(b) Before the nonparticipating manufacturer may sell cigarettes in Indiana, the nonparticipating manufacturer must pay the greater of:
(1) the amount determined in subsection (c); or
(2) fifty thousand dollars ($50,000).
(c) The department shall estimate the number of cigarettes that the nonparticipating manufacturer will sell in Indiana during the first month in which the nonparticipating manufacturer sells cigarettes in Indiana. The department shall multiply the number by two and one-half cents ($0.025) and report the amount to the nonparticipating manufacturer.
(d) A nonparticipating manufacturer shall provide the department with information the department determines is necessary to calculate the amount under subsection (c).
Sec. 11. (a) On or before the fifteenth day of each month, a distributor shall report to the department the following information:
(1) The number and denomination of each stamp affixed to a package of nonparticipating manufacturer cigarettes.
(2) The nonparticipating manufacturer and brand family of each package described in subdivision (1).
(3) The retailer (as defined in IC 6-7-1-7) that receives each package described in subdivision (1).
(b) Information reported under this section must be maintained and is subject to inspection under IC 6-7-1-19.
Sec. 12. If the department discovers nonparticipating manufacturer cigarettes on which the fee under this chapter has not been paid, the department may seize and take possession of the cigarettes. The seized cigarettes are forfeited to the state. The department shall destroy the seized cigarettes.
Sec. 13. The department shall adopt rules under IC 4-22-2 to
implement this chapter. The rules must include a method for
receiving additional payments from or reimbursing a
nonparticipating manufacturer whose actual monthly sales differ
from the department's estimate under section 10 of this chapter.