Introduced Version






SENATE BILL No. 371

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-7-2.

Synopsis: Nonsmoking tobacco products tax. Increases the tobacco products tax (nonsmoking) from 24% to 31% of the wholesale price. Reduces the collection allowance from 0.006 to 0.0052 of the amount due. Provides that $1,500,000 of the revenue from the increase is appropriated to the department of health for prenatal substance abuse programs and the remainder of the increase is deposited in the Indiana check-up plan trust fund.

Effective: July 1, 2009.





Kruse




    January 8, 2009, read first time and referred to Committee on Appropriations.







Introduced

First Regular Session 116th General Assembly (2009)


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.
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SENATE BILL No. 371



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.

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

SOURCE: IC 6-7-2-7; (09)IN0371.1.1. -->     SECTION 1. IC 6-7-2-7, AS AMENDED BY P.L.234-2007, SECTION 201, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. A tax is imposed on the distribution of tobacco products in Indiana at the rate of twenty-four thirty-one percent (24%) (31%) of the wholesale price of the tobacco products. The distributor of the tobacco products is liable for the tax. The tax is imposed at the time the distributor:
        (1) brings or causes tobacco products to be brought into Indiana for distribution;
        (2) manufactures tobacco products in Indiana for distribution; or
        (3) transports tobacco products to retail dealers in Indiana for resale by those retail dealers.
SOURCE: IC 6-7-2-13; (09)IN0371.1.2. -->     SECTION 2. IC 6-7-2-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 13. A distributor that files a complete return and pays the tax due within the time specified in section 12 of this chapter is entitled to deduct and retain from the tax a collection allowance of six-thousandths (0.006) fifty-two

ten-thousandths (0.0052) of the amount due. If a distributor files an incomplete report, the department may reduce the collection allowance by an amount that does not exceed the lesser of:
        (1) ten percent (10%) of the collection allowance; or
        (2) fifty dollars ($50).

SOURCE: IC 6-7-2-17; (09)IN0371.1.3. -->     SECTION 3. IC 6-7-2-17, AS AMENDED BY P.L.234-2007, SECTION 202, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 17. The department shall deposit twenty-five percent (25%) of the taxes, registration fees, fines, or penalties collected under this chapter as follows:
        (1) Twenty-two percent (22%)
in the affordable housing and community development fund established by IC 5-20-4-7.
         (2) Six and seven-tenths percent (6.7%) in the Indiana check-up plan trust fund established by IC 12-15-44.2-17.
        (3) One million five hundred thousand dollars ($1,500,000) is appropriated each state fiscal year to the state department of health for prenatal substance abuse programs.
        (4)
The remainder of the taxes, registration fees, fines, or penalties collected under this chapter shall be deposited as provided in IC 6-7-1-28.1.