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 Indiana.

    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