Alerts & Updates
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Oppose Flavor Ban in Indiana
January 6, 2021Indiana State Representative Carolyn Jackson has introduced H.B. 1076 that would ban the sale of flavored tobacco products. The prohibition […]
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27 States + DC Enact Laws Related to Raising Smoking Age to 21
June 24, 2020Following the Federal Age of Tobacco Purchase increase from 18 to 21 that occurred in December of last year, 27 […]
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Your Guide to Tobacco 21 Legislation
May 9, 2019In Washington, there has been a recent flurry of action and discussion on the topic of raising the minimum purchase […]
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Key Contacts
Indiana Department of Revenue
(317) 615-2710
incigtax@dor.in.gov
Indiana Lobby Registration Commission
(317) 232-9860
(317) 233-0077 Fax
PCA Contact
Joshua Habursky
Glynn Loope joshua@premiumcigars.orgglynn@premiumcigars.org
Legislative Information
Taxation
Indiana imposes a tax on the distribution of tobacco products in the state. The tax is imposed at the time the distributor: brings or causes tobacco products to be brought into Indiana for distribution; manufactures tobacco products in Indiana for distribution; or transports tobacco products to retail dealers in Indiana for resale by those retail dealers.
Ind. Code § 6-7-2-7: Tax on the distribution of tobacco products; rate; time of imposition; findings by the general assembly
Department of Revenue staff reported that Indiana localities do not levy additional taxes on tobacco products.
The tax on other tobacco products is 24% of the wholesale price of the products, except that the tax on moist snuff is $0.40 per ounce and a proportionate tax at the same rate on all fractional parts of an ounce.
Ind. Code § 6-7-2-7: Tax on the distribution of tobacco products; rate; time of imposition; findings by general assembly
Before the 15th day of each month, each distributor must electronically file the Other Tobacco Products Monthly Return (Form OTP-M) and an OTP-M Transaction Schedule (Form OTP-M-S), along with payment for taxes due, through INtax. Find additional information on Electronic Filing for Tobacco Products Taxpayers.
Ind. Code § 6-7-2-12: Electronic filing of returns and remitting of taxes
| Form Type / Name | Form Number / Link |
| Indiana Department of Revenue: Cigarette and Other Tobacco Products Tax Forms | Cigarette and OTP Forms |
| Other Tobacco Products Monthly Return | Form OTP-M |
| OTP-M Transaction Schedule | Schedule OTP-M-S |
| INtax | INtax |
| INtax QuickStart Guide | INtax QuickStart Guide |
| Electronic Filing for Other Tobacco Products Taxpayers | E-Filing for OTP Taxpayers |
| SFTP Bulk Upload Guide | Bulk Upload Guide |
Cigar and Smoking Tobacco Definitions
Restrictions
Indiana law prohibits smoking: in public places; in places of employment; in vehicles owned, leased, or operated by the state if the vehicle is being used for a governmental function; and within 8 feet of a public entrance to a public place or place of employment.
Ind. Code § 7.1-5-12-4: Places smoking is prohibited; duties of employers and person in charge of a place of employment or public place
An owner, operator, manager, or official in charge of a public place or place of employment must post conspicuous signs at each entrance that read
“State Law Prohibits Smoking Within 8 Feet of this Entrance”
or other similar languages.
Ind. Code § 7.1-5-12-4: Places smoking is prohibited; duties of employers and person in charge of a place of employment or public place
State law does not prohibit a county, city, town, or other governmental units from adopting more restrictive ordinances. State law also does not supersede more restrictive smoking ordinances that were previously adopted by a county, city, town, or other governmental units.
Ind. Code § 7.1-5-12-13: Local ordinances
The following are exempt from the ban on smoking, subject to conditions:
- Permitted horse racing facilities and any other permanent structures on land owned or leased by the owner of the facilities that are adjacent to the facilities
- Riverboats and any other permanent structure that is:
- Owned or leased by the owner of the riverboat and
- Located on land that is adjacent to
- The dock to which the riverboat is moored or
- The land on which the riverboat is situated
- Licensed gambling game facilities and any other permanent structure on land owned or leased by the owner of the facilities that are adjacent to the facilities
- Satellite facilities
- Establishments owned or leased by businesses that meet the following requirements:
- The business was in business and permitted smoking on December 31, 2012
- The business prohibits entry by an individual who is less than 21 years of age
- The owner or operator of the business holds a beer, liquor, or wine retailer’s permit
- The business limits smoking in the establishment to either:
- Cigar smoking or
- Smoking with a water pipe or hookah device
- During the preceding calendar year, at least 10% of the business’s annual gross income was from:
- The sale of cigars and the rental or onsite humidors or
- The sale of loose tobacco for use in a water pipe or hookah device
- The person in charge of the business posts in the establishment conspicuous signs that display the message that cigarette smoking is prohibited
- Premises owned or leased by and regularly used for the activities of businesses that meet the following requirements:
- The business is exempt from federal income taxation
- The business:
- Meets the requirements to be considered a club or
- Is a fraternal club
- The business provides food or alcoholic beverages only to its bona fide members and their guests
- The business:
- Provides a separate, enclosed, designated smoking room or area that is adequately ventilated to prevent migration of smoke to nonsmoking areas of the premises
- Allows smoking only in the designated smoking room or area
- Does not allow an individual who is under 18 years of age to enter the designated smoking room or area
- Retail tobacco stores used primarily for the sale of tobacco products and tobacco accessories that meet the following requirements:
- The owner or operator of the store holds a valid Tobacco Sales Certificate
- The store prohibits entry by an individual who is under 18 years of age
- The sale of products other than tobacco products and tobacco accessories is merely incidental
- The sale of tobacco products accounts for at least 85% of the store’s annual gross sales
- Food or beverages are not sold in a manner that requires consumption on the premises, and there is not an area set aside for customers to consume food or beverages on the premises
- Bars or Taverns:
- For which a permittee holds:
- A beer retailer’s permit
- A liquor retailer’s permit or
- A wine retailer’s permit
- That does not employ an individual who is under 18 years of age
- That do not allow an individual to enter who:
- Is under 21 years of age and
- Is not an employee of the bar or tavern
- That is not located in a business that would otherwise be subject to the ban on smoking
- For which a permittee holds:
- Cigar manufacturing facilities that do not offer retail sales
- Premises of cigar specialty stores to which all of the following apply:
- The owner or operator held a valid Tobacco Sales Certificate
- The sale of tobacco products and tobacco accessories account for at least 50% of the store’s annual gross sales
- The store has a separate, enclosed, designated smoking room that is adequately ventilated to prevent migration of smoke to nonsmoking areas
- Smoking is allowed only in the designated smoking room
- Individuals under 18 years of age are prohibited from entering the designated smoking room
- Cigarette smoking is not allowed on the premises of the store
- The owner or operator of the store posts a conspicuous sign on the premises of the store that displays the message that cigarette smoking is prohibited
- Food or beverages are not sold in a manner that requires consumption on the premises, and there is not an area set aside for customers to consume food or beverages on the premises
- Premises of a business that is located in the business owner’s private residence if the only employees of the business who work in the residence are the owner and other individuals who reside in the residence
The owner, operator, manager, or official in charge of an establishment or premises in which smoking is allowed under this section shall post conspicuous signs in the establishment that read “WARNING: Smoking Is Allowed in This Establishment” or other similar languages.
The owner, operator, or manager of an establishment or premises that qualifies for exemption from the smoking ban must file a Commission. TheCommission may require documentation or additional information concerning the exemption of the establishment or premises.
Ind. Code § 7.1-5-12-5: Exceptions to smoking ban; signage; areas where smoking is prohibited in exempted premises; verified statement.
Individuals under 18 years of age cannot purchase or possess tobacco or an electronic cigarette or accept tobacco or an electronic cigarette for personal use. However, this prohibition does not apply if the minor acted in the ordinary course of employment in business concerning tobacco or electronic cigarettes, such as agriculture, processing, transporting, wholesaling, or retailing.
Ind. Code § 35-46-1-10.5: Purchase, acceptance, or possession of tobacco or electronic cigarettes by a minor
Department of Labor staff reported that the minimum age to work in tobacco retail stores in Indiana is 18.
It is illegal for any person to knowingly sell or distribute tobacco or an electronic cigarette to a person under 18 years of age, or to knowingly purchase tobacco or an electronic cigarette for delivery to another person who is under 18 years of age. This prohibition does not apply if the person sold or delivered the tobacco or electronic cigarette to a person who acted in the ordinary course of employment in business concerning tobacco or electronic cigarettes, such as agriculture, processing, transporting, wholesaling, or retailing.
Ind. Code § 35-46-1-10: Sale or distribution of tobacco or electronic cigarettes to a minor; defenses
An establishment selling tobacco or electronic cigarettes at retail must post and maintain in a conspicuous place, at the point of sale, the following:
- Signs printed in letters at least 1/2 inch high, reading as follows:
- “The sale of tobacco or electronic cigarettes to persons under 18 years of age is forbidden by Indiana law.”
- “Smoking by Pregnant Women May Result in Fetal Injury, Premature Birth, And Low Birth Weight.”
- A sign printed in letters and numbers at least 1/2-inch-high that displays a toll-free phone number for assistance to callers in quitting smoking, as determined by the state department of health
Ind. Code § 35-46-1-11(c): Retail sale of tobacco or electronic cigarettes; warning notices; penalty
A retail establishment that has as its primary purpose the sale of tobacco products may not allow an individual under 18 years of age to enter the retail establishment. Retail establishments must conspicuously post on all entrances to the retail establishment the following:
- A sign in boldface type that states “NOTICE: It is unlawful for a person less than 18 years old to enter this store.”
- A sign printed in letters and numbers at least 1/2-inch-high that displays a toll-free phone number for assistance to callers in quitting smoking, as determined by the state department of health.
Ind. Code § 35-46-1-11.7: Minors prohibited from entering a retail establishment that primarily sells tobacco products; posting notices required; civil penalties
A person may not operate a tobacco business within 200 feet of a public or private elementary or secondary school, as measured between the nearest point of the premises occupied by the tobacco business and the nearest point of a building used by the school for instructional purposes.
Ind. Code § 35-46-1-11.2(b): Operation of tobacco business near school prohibited
Regulation of the sale, distribution, or display of tobacco products may only be authorized by the General Assembly. An ordinance, bylaw, or rule of a county, city, or township, or a department, board, or agency thereof, or any other political subdivision or agency of the state concerning these matters is void.
Ind. Code § 16-41-39-1: General assembly having exclusive regulatory power
Ind. Code § 16-41-39-2: Local ordinances, bylaws, and rules void
In Indiana, it is illegal for any person to knowingly distribute tobacco or an electronic cigarette to a person under 18 years of age. “Distribute” means to give tobacco or an electronic cigarette to another person as a means of promoting, advertising, or marketing the tobacco or electronic cigarette to the general public.
Ind. Code § 35-46-1-10: Sale or distribution of tobacco or electronic cigarettes to a minor; defenses
A person may not operate a tobacco business within 200 feet of a public or private elementary or secondary school, as measured between the nearest point of the premises occupied by the tobacco business and the nearest point of a building used by the school for instructional purposes.
Ind. Code § 35-46-1-11.2(b): Operation of tobacco business near school prohibited
Department of Revenue staff reported that the distribution of tobacco samples is subject to state tax and licensing requirements.
Regulation of the sale, distribution, or display of tobacco products may only be authorized by the General Assembly. An ordinance, bylaw, or rule of a county, city, or township, or a department, board, or agency thereof, or any other political subdivision or agency of the state concerning these matters is void.
Ind. Code § 16-41-39-1: General assembly having exclusive regulatory power
Ind. Code § 16-41-39-2: Local ordinances, bylaws, and rules void
Operating Your Business
Before selling or otherwise distributing tobacco products in Indiana, tobacco product retailers must obtain a Tobacco Sales Certificate for each place of business from the Indiana Alcohol and Tobacco Commission by filing an Application for Tobacco Sales Certificate and a $200 fee. Tobacco Sales Certificates are valid for 3 years from the date of issuance. Retailers can register for or renew Tobacco Sales Certificates.
Ind. Code § 7.1-3-18.5-1:Tobacco sales certificate required
Ind. Code § 7.1-3-18.5-2:Information required; fees; certification for each location; display of certificate; denial; requirements
Ind. Code § 7.1-3-18.5-3:Contents of the certificate; term of certificate; nontransferable
Before distributing tobacco products in Indiana, a distributor must obtain a Tobacco Products Distributor’s License for each place of business from the Department of Revenue by filing an Application for Other Tobacco Products Distributor’s License (Form OTP-1A), an Other Tobacco Products Distributor’s License Bond (Form OTP-902) in the amount of $1,000, and a $25 fee. Tobacco Products Distributor’s Licenses are valid for 1 year from the date of issue and must be renewed annually by filing the same forms.
Ind. Code § 6-7-2-8: Distributor’s license
Before the 15th day of each month, each distributor must electronically file the Other Tobacco Products Monthly Return (Form OTP-M) and an OTP-M Transaction Schedule (Form OTP-M-S), along with payment for taxes due, through INtax. For more information on electronic filing for tobacco products taxpayers visit https://www.in.gov/dor/5168.htm.
Ind. Code § 6-7-2-12: Electronic filing of returns and remitting of taxes
The following businesses may allow both smoking and drinking within their establishments, subject to conditions:
- Establishments owned or leased by businesses that meet the following requirements:
- The business was in business and permitted smoking on December 31, 2012
- The business prohibits entry by an individual who is less than 21 years of age
- The owner or operator of the business holds a beer, liquor, or wine retailer’s permit
- The business limits smoking in the establishment to either:
- Cigar smoking or
- Smoking with a water pipe or hookah device
- During the preceding calendar year, at least 10% of the business’s annual gross income was from:
- The sale of cigars and the rental or onsite humidors or
- The sale of loose tobacco for use in a water pipe or hookah device
- The person in charge of the business posts in the establishment conspicuous signs that display the message that cigarette smoking is prohibited
- Premises owned or leased by and regularly used for the activities of businesses that meet all of the following:
- The business is exempt from federal income taxation
- The business:
- Meets the requirements to be considered a club or
- Is a fraternal club
- The business provides food or alcoholic beverages only to its bona fide members and their guests
- The business:
- Provides a separate, enclosed, designated smoking room or area that is adequately ventilated to prevent migration of smoke to nonsmoking areas of the premises
- Allows smoking only in the designated smoking room or area
- Does not allow an individual who is under 18 years of age to enter the designated smoking room or area
- Bars or Taverns:
- For which a permittee holds:
- A beer retailer’s permit
- A liquor retailer’s permit or
- A wine retailer’s permit
- That does not employ an individual who is under 18 years of age
- That do not allow an individual to enter who:
- Is under 21 years of age and
- Is not an employee of the bar or tavern
- That is not located in a business that would otherwise be subject to the ban on smoking
- For which a permittee holds:
The owner, operator, manager, or official in charge of an establishment or premises in which smoking is allowed under this section shall post conspicuous signs in the establishment that read “WARNING: Smoking Is Allowed In This Establishment” or other similar languages.
The owner, operator, or manager of an establishment or premises that qualifies for exemption from the smoking ban must file an Exception from Smoking Ban form with the Indiana Alcohol and Tobacco Commission.The Commission may require documentation or additional information concerning the exemption of the establishment or premises.
Ind. Code § 7.1-5-12-5: Exceptions to smoking ban; signage; areas where smoking is prohibited in exempted premises; verified statement
Localities may require additional business licenses.
| Form Type / Name | Form Number / Link |
| Indiana Alcohol & Tobacco Commission: Tobacco Applications & Forms | Tobacco Applications & Forms |
| Application for Tobacco Sales Certificate | Application for Tobacco Sales Certificate |
| Online Application / Login | Online Application |
| Indiana Department of Revenue: Cigarette and Other Tobacco Products Tax Forms | Cigarette and OTP Tax Forms |
| Application for Other Tobacco Products Distributor’s License | Form OTP-1A |
| Other Tobacco Products Distributor’s License Bond | Form OTP-902 |
| Other Tobacco Products Monthly Return | Form OTP-M |
| OTP-M Transaction Schedule | Schedule OTP-M-S |
| INtax | INtax |
| Electronic Filing for Other Tobacco Products Taxpayers | Electronic Filing for OTP Taxpayers |
| Bulk Upload Guide | Bulk Upload Guide |
Political Involvement
For each reporting year (November 1st through October 31st), each lobbyist must file a Registration Statement and a $200 registration fee with the Indiana Lobby Registration Commission. Registration Statements must be filed no later than November 1st each year, or within 15 business days after a person becomes a lobbyist, whichever is later.
Ind. Code § 2-7-2-1:Filing requirement; online registration
Ind. Code § 2-7-2-2:Time of filing; expiration of registration; late filing; fees
Each lobbyist must file semiannual Activity Reports on or before May 31st and November 30th of each year. Lobbyists must file a separate Activity Report for each person from whom the lobbyist receives payment for lobbying.
Ind. Code § 2-7-3-1:Filing requirement; online filing
Ind. Code § 2-7-3-2:Time of filing; failure to file; penalty; limitation
All Registration Statements and Activity Reports must be completed electronically. Instructions for electronic filing may be found at https://www.in.gov/ilrc/2341.htm.
| Form Type / Name | Form Number / Link |
| Indiana Lobby Registration Commission – Home | Indiana Lobby Registration Commission |
| Indiana Lobbyist Handbook | Lobbyist Handbook |
| Compilation of Informal Advice to Lobbyists | Informal Advice to Lobbyists |
| Electronic Filing Instructions | Electronic Filing Instructions |
Shipping Regulations
Indiana does not have any restrictions on the shipping of tobacco products to consumers. Indiana has requirements concerning the shipping of cigarettes.
Ind. Code § 24-3-5-4: Requirements
Ind. Code § 24-3-5-5: Mailing or shipping tobacco products
Every shipper of tobacco product must register with the department before they sell or otherwise distribute tobacco products to distributors
Ind. Code § 6-7-2-15: Registration of manufacturer, importer, broker, or shipper distributing to distributor
Before selling or otherwise distributing tobacco products in Indiana, tobacco product retailers must obtain a Tobacco Sales Certificate for each place of business from the Indiana Alcohol and Tobacco Commission by filing an Application for Tobacco Sales Certificate and a $200 fee. Tobacco Sales Certificates are valid for 3 years from the date of issuance. Retailers can register for or renew Tobacco Sales Certificates.
Ind. Code § 7.1-3-18.5-1:Tobacco sales certificate required
Ind. Code § 7.1-3-18.5-2:Information required; fees; certification for each location; display of certificate; denial; requirements
Ind. Code § 7.1-3-18.5-3:Contents of the certificate; term of certificate; nontransferable
Before distributing tobacco products in Indiana, a distributor must obtain a Tobacco Products Distributor’s License for each place of business from the Department of Revenue by filing an Application for Other Tobacco Products Distributor’s License (Form OTP-1A), an Other Tobacco Products Distributor’s License Bond (Form OTP-902) in the amount of $1,000, and a $25 fee. Tobacco Products Distributor’s Licenses are valid for 1 year from the date of issue and must be renewed annually by filing the same forms.
Ind. Code § 6-7-2-8: Distributor’s license
Additional information about licensing in Indiana is available at the Operating Your Business link above.
Indiana does not have any specific age verification requirements for the shipping of tobacco products.
Indiana imposes a tax on the distribution of tobacco products in the state. The tax is imposed at the time the distributor: brings or causes tobacco products to be brought into Indiana for distribution; manufactures tobacco products in Indiana for distribution; or transports tobacco products to retail dealers in Indiana for resale by those retail dealers.
Ind. Code. § 6-7-2-7: Tax on the distribution of tobacco products; rate; time of imposition; findings by general assembly
Department of Revenue staff reported that Indiana localities do not levy additional taxes on tobacco products.
The Department of Revenue shall credit or refund to a distributor the tax paid under this chapter on tobacco products that are shipped outside Indiana.
Ind. Code § 6-7-2-14: Credit or refund of taxes
Every shipper of tobacco products that sells or otherwise distributes tobacco products to distributors shall, before the 15th day of each month, submit proof to the department of all of its sales or other distributions to distributors in the preceding month.
Ind. Code § 6-7-2-16: Manufacturer, importer, broker, or shipper; proof of distributions
Disclaimer: PCA believes the information on this site is accurate. However, tobacco laws and regulations are subject to frequent change and court interpretation. Statements above are not intended as legal advice or restatement of law. PCA does not guarantee or assume responsibility for the accuracy, completeness or timeliness of this information, nor that this information complies with all federal laws or the laws of all 50 states. Parties acknowledge and agree it is not the intention of PCA to provide specific legal advice for particular individuals, but rather to provide users with general information to better understand these issues. Users shall neither construe any of these materials as legal advice nor make this site the primary basis for any legal decisions made by or on your behalf and agree to release and waive any claims against PCA for the same. You shall consult with legal advisors concerning any contemplated individual decision.