SENATE BILL No. 371
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.
January 8, 2009, read first time and referred to Committee on Appropriations.
First Regular Session 116th General Assembly (2009)
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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
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
(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.
of the taxes, registration fees, fines, or
penalties collected under this chapter
shall be deposited as
provided in IC 6-7-1-28.1.