A HOUSE RESOLUTION urging the legislative council to
assign to the commission on state tax and financing policy the
topic of improving methods of tobacco tax collection in
Whereas, the State of Indiana is likely failing to collect all
legally due cigarette revenue through counterfeiting and misuse
of cigarette stamps; and
Whereas, the State of Indiana is likely failing to collect
additional tobacco revenue through black-marketing and
illegal sales of tobacco products in which the legally required
tobacco product tax has not been collected or remitted to the
department of state revenue; and
Whereas, smoking by pregnant women increases premature
births, which leads to greater incidence of birth defects and
health problems for the prematurely born babies; and
Whereas, increased collection of legally due tobacco tax
would be beneficial to the State of Indiana, and could be used
to fund prenatal substance abuse prevention measures, and
other health initiatives; therefore
SECTION 1. That the Indiana House of Representatives urges the legislative council to assign the commission on state tax and financing policy the topic of improving methods of tobacco tax collection in Indiana, and to include in its study:
1) The feasibility of changing the design and method for verifying, tracking, and tracing cigarette stamps to incorporate the most realistic and cost effective methods used by other states (best practices) to reduce counterfeiting and misuse of cigarette stamps.
2) Review of efforts being made by state agencies to enforce the laws governing unlawful activity and to collect tobacco product taxes.
3) Recommendations for future actions as deemed necessary.
DR 4850/DI jk