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Indiana Code 24-3-5-4.5. Delivery sale by merchant; penalties

   Sec. 4.5. (a) This section applies to a merchant that is not a cigarette manufacturer.

     (b) Except as provided in subsection (d), a merchant may not mail or ship cigarettes as part of a delivery sale to an Indiana resident or retailer (as defined in IC 24-3-2-2(d)) that is not a distributor.

Terms Used In Indiana Code 24-3-5-4.5

  • cigarette: has the meaning set forth in IC 6-7-1-2. See Indiana Code 24-3-5-0.1
  • commission: refers to the alcohol and tobacco commission created by Indiana Code 24-3-5-0.3
  • delivery sale: means a transaction for the purchase of tobacco products in which an offer to purchase tobacco products is made:

    Indiana Code 24-3-5-1

  • distributor: includes the following:

    Indiana Code 24-3-5-1.5

  • merchant: means a person or an entity that engages in the selling of tobacco products by delivery sale. See Indiana Code 24-3-5-2
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (c) If the commission determines that a merchant has violated subsection (b):

(1) a distributor may not accept a shipment of cigarettes from the merchant for a period, not to exceed one (1) year, determined by the commission; and

(2) the commission may impose a civil penalty, not to exceed five thousand dollars ($5,000), on the merchant for each violation of subsection (b), as determined by the commission.

     (d) A merchant may make a drop shipment of tobacco products to an Indiana resident or retailer that is billed through a distributor.

As added by P.L.160-2005, SEC.8.

Indiana Code 24-3-5.4-5. “Distributor”

   Sec. 5. As used in this chapter, “distributor” means a person that:

(1) purchases cigarettes on which the tax under IC 6-7-1 is not paid; and

(2) stores, sells, or otherwise disposes of the cigarettes.

As added by P.L.252-2003, SEC.16.