Tax on Distribution of Closed System Cartridges; Rate; Time of Imposition

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Effective 7-1-2022.

Sec. 7.5. (a) A tax is imposed on the distribution of closed system cartridges in Indiana at the rate of twenty-five percent (25%) of the wholesale price of the closed system cartridge.

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

(1) brings or causes closed system cartridges to be brought into Indiana for distribution;

(2) manufactures closed system cartridges in Indiana for distribution; or

(3) transports closed system cartridges to retail dealers in Indiana for resale by those retail dealers.

(c) A consumer who purchases untaxed closed system cartridges from a distributor or retailer, including closed system cartridges purchased through an Internet web site, a catalog, or other similar means, is liable for the tax imposed under subsection (a).

As added by P.L.165-2021, SEC.108.


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