Distributors as agents of state for collection of tax; purchase of
revenue stamps; execution of bond
Sec. 17. (a) Distributors who hold certificates and retailers shall
be agents of the state in the collection of the taxes imposed by this
chapter and the amount of the tax levied, assessed, and imposed by
this chapter on cigarettes sold, exchanged, bartered, furnished, given
away, or otherwise disposed of by distributors or to retailers.
Distributors who hold certificates shall be agents of the department
to affix the required stamps and shall be entitled to purchase the
stamps from the department at a discount of one and two-tenths
percent (1.2%) of the amount of the tax stamps purchased, as
compensation for their labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps within thirty (30) days after the date of purchase. However,
the privilege is extended upon the express condition that:
(1) except as provided in subsection (c), a bond or letter of
credit satisfactory to the department, in an amount not less than
the sales price of the stamps, is filed with the department; and
(2) proof of payment is made of all local property, state income,
and excise taxes for which any such distributor may be liable.
The bond or letter of credit, conditioned to secure payment for
the stamps, shall be executed by the distributor as principal and
by a corporation duly authorized to engage in business as a
surety company or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b).
(Formerly: Acts 1947, c.222, s.16; Acts 1963(ss), c.37, s.4; Acts
1965, c.225, s.7.) As amended by P.L.2-1988, SEC.28; P.L.49-1992,
SEC.2; P.L.192-2002(ss), SEC.136; P.L.252-2003, SEC.1.
Last modified: May 28, 2006