Indiana Directory of Cigarettes Approved For Stamping and Sale (Part II)
On July 1, 2003, Indiana's House Enrolled Act 1788 ("HEA 1788"), codified at Title 24, Chapter 3 of the Indiana Code, became effective. This new law requires the attorney general's office to publish a directory listing all the brand families of tobacco product manufacturers that have been certified by the attorney general as being fully compliant with Indiana law. In order to comply with the law, all tobacco manufacturers (both signatories of the Master Settlement Agreement and nonparticipating manufacturers) must complete a certification form to be returned to both the Indiana Department of Revenue and the attorney general no later than April 30 of each year. In 2003, the certifications were due by August 15.
On October 1, 2003, the directory was available online at the attorney general's Web site. Beginning October 1st, only those brands and brand families listed in the directory may be stamped, offered for sale, possessed for sale, or sold in Indiana. Under the new law, stamping agents and distributors are entitled to a refund from a tobacco product manufacturer for any money they might have paid to the manufacturer for cigarettes of a brand that is not listed on the directory and that is in their possession on October 1. Likewise retailers are entitled to a refund for any money paid to the distributor or stamping agent or manufacturer for brands not listed and still in the retailer's possession on October 1.
Distributors and stamping agents who sell, stamp, possess for sale, offer to sell, distribute, possess, transport, import or cause to be imported a brand that is not listed on the directory and which that person knew or should have known was intended for sale in Indiana commits a Class C Misdemeanor. In addition to possible civil or criminal penalties, the Department of Revenue can revoke or suspend the license of a distributor or stamping agent, or any other person who commits any of the named violations.
HEA 1788 requires distributors and stamping agents to submit quarterly reports to the Indiana Department of Revenue, the Attorney General, and the Alcohol and Tobacco Commission. These reports are due on January 20, April 20, July 20, and October 20 of each year and must include a list by brand family of the total number of cigarettes for which the agent or distributor affixed stamps or otherwise paid taxes during the preceding three months. The only quarterly report required during 2003 is due on October 20th. Please note that the quarterly report is in addition to the monthly report that is currently required by the department.
The legislation also requires distributors and stamping agents to retain for a minimum of five years all information upon which they rely in reporting the sales of non-participating manufacturers' cigarettes, including invoices and other documentation.
The applicable law can be accessed on this Web site. All required forms for distributors and stamping agents, including the new quarterly report, are posted on the Department's Web site (www.in.gov/dor).
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