Vote Smart's Synopsis:

Vote to pass a bill that authorizes the taxation of vaping liquid products.

Highlights:

• Defines “manufacturer” as an individual within or outside Indiana that produces vapor products, consumable materials, or both, or is has contracts with another individual to produce vapor products, consumable materials, or both, and is the exclusive purchaser of the products under the contract (Sec. 2).

• Defines “vapor products” as a device, such as an electronic cigarette, that employs a mechanical heating element, battery, or electronic circuit, regardless of shape or size, that can be used to produce vapor from a consumable material (Sec. 2).

• Requires an electronic cigarette tax be imposed on the distribution of consumable material in Indiana at the rate of four cents per fluid milliliter of consumable material (Sec. 2).

• Requires the distributor of the consumable materials, including individuals that sell consumable materials through an internet website, to be liable for the tax, which will be imposed at the time the distributor. After June 30, 2019, the tax is imposed at the time the distributor (Sec. 2):

• Brings or causes consumable materials to be brought into Indiana for distribution or sale;

• Manufactures consumable materials in Indian for distribution;

• Transports consumable materials to retail dealers in Indiana for resale by those retail dealers; or

• First possesses the consumable materials in Indiana in a distribution to distributor transaction.

• Specifies that the tax will not be imposed until after June 30, 2019 (Sec. 2).

• Requires that a consumer who purchases consumable materials, including consumable materials purchased through an internet website, is liable for the tax and will remit the tax to the Indiana State Department of Health (Sec. 2).

• Requires a distributor, including individuals that sells consumable materials, vapor products, or both through an internet website, to obtain a license from the Department before distributing consumable materials in Indiana (Sec. 2).

• Specifies that an individual who knowingly or intentionally distributes or sells consumable materials without a license issued in this bill commits a class B misdemeanor (Sec. 2).

Full Bill Text