Note: This version of section amended by P.L.205-2025, SEC.16. See also following version of this section amended by P.L.213-2025, SEC.88.

1. (b) The distributor of closed system cartridges, including a person that sells closed system cartridges through a website, is liable for the tax imposed under subsection (a). The tax is imposed at the time the distributor:

   1. (1) brings or causes closed system cartridges to be brought into Indiana for distribution;
   2. (2) manufactures closed system cartridges in Indiana for distribution;
   3. (3) transports closed system cartridges to retail dealers in Indiana for resale by those retail dealers; or
   4. (4) first receives the closed system cartridges in Indiana in the case of distributor to distributor transactions.
2. (c) A consumer who purchases untaxed closed system cartridges from a distributor or retailer is liable for the tax imposed under subsection (a).

Sec. 7.5. (a) A tax is imposed on the distribution of closed system cartridges in Indiana at the rate of fifteen percent (15%) of the wholesale price of the closed system cartridge. If a closed system cartridge is sold in the same package as a vapor product device, the tax imposed under this subsection shall only apply to the wholesale price of the closed system cartridge if the wholesale cost of the closed system cartridge can be isolated from the vapor product device on the invoice.

As added by P.L.165-2021, SEC.108. Amended by P.L.137-2022, SEC.69; P.L.1-2025, SEC.99; P.L.205-2025, SEC.16.