Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Indiana.

Ind. Code § 35-46-1-11.5 (2024) – Coin machines for sale or distribution of tobacco or electronic cigarettes: Indiana law strictly limits vape/tobacco product vending machines (“coin machines”) to adults-only areas. Outside of specified 21+ locations, it is unlawful for any retail establishment to distribute or sell tobacco or electronic cigarettes by means of a coin-operated machine. Violations are Class C infractions with escalating penalties and possible machine removal. The statute reads:

Sec. 11.5. (a) Except for a coin machine that is placed in or directly adjacent to an entranceway or an exit, or placed in a hallway, a restroom, or another common area that is accessible to persons who are less than twenty-one (21) years of age, this section does not apply to a coin machine that is located in the following:

(1) That part of a licensed premises… where entry is limited to persons who are at least twenty-one (21) years of age.

(2) Private industrial or office locations that are customarily accessible only to persons who are at least twenty-one (21) years of age.

(3) Private clubs if the membership is limited to persons who are at least twenty-one (21) years of age.

(4) Riverboats where entry is limited to persons who are at least twenty-one (21) years of age and on which lawful gambling is authorized.

(b) As used in this section, “coin machine” has the meaning set forth in IC 35-43-5-1.

(c) Except as provided in subsection (a), an owner of a retail establishment may not: (1) distribute or sell tobacco or electronic cigarettes by use of a coin machine; or (2) install or maintain a coin machine that is intended to be used for the sale or distribution of tobacco or electronic cigarettes.

(d) An owner of a retail establishment who violates this section commits a Class C infraction. A citation or summons issued under this section must provide notice that the coin machine must be moved within two (2) business days. … If the owner has prior violations, higher civil penalties apply (fifty dollars for a first offense, $250 for a second recent offense), and upon a third recent offense the vending machine shall be removed or impounded. (An owner may not be cited more than once every two business days for each location.)

(e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under this section must be deposited in the Richard D. Doyle youth tobacco education and enforcement fund

1. Age Restriction Laws

“A person who knowingly or intentionally sells, gives, or distributes a tobacco product or an electronic cigarette to a person less than 21 years of age commits a Class C infraction.”
Citation: Ind. Code § 35-46-1-10(b).

2. Licensing and Permitting

A. Tobacco Sales Certificate (Required for all tobacco/vape sales)

• Issuing Authority: Indiana Alcohol and Tobacco Commission (ATC)
• Requirement: Applies to both brick-and-mortar businesses and locations with vending machines.
• Applicable Statute:

“A tobacco sales certificate may be issued only to a person who owns or operates at least one of the following: (1) A premises consisting of a permanent building… (2) A premises upon which a cigarette vending machine is located.”
Citation: Ind. Code § 7.1-3-18.5-1.

• Posting Requirement:

“A tobacco retail sales certificate… must be conspicuously displayed.”
Citation: 905 IAC 1-46-1.

B. Open-System Electronic Cigarette Retail Certificate

• Issuing Authority: Indiana Department of State Revenue (DOR)
• Required For: Any retailer selling open-system e-cigarette products (includes refillable vape tanks).
• Duration: Valid for 1 year; non-transferable.
• Fee: $25
• Bond Requirement:

“Applicant must post a bond… not less than $1,000 issued by a surety company approved by the department.”
Citation: Ind. Code § 6-7-4-10.

• Per Location Requirement: Each retail location must hold a separate certificate.
• Display Requirement:

“Certificates must be posted in a conspicuous place at the place of business.”
Citation: Ind. Code § 6-7-4-10.

3. Product Source and Nicotine Limit Laws

A. Sourcing Restriction

“A retailer may purchase e-liquid only from an Indiana e-liquid manufacturing permit holder or an Indiana distributor permit holder.”
Citation: Ind. Code § 7.1-7-5-1.1(b).

B. Recordkeeping

“A retailer shall retain all invoices for e-liquid purchased… for two (2) years.”
Citation: Ind. Code § 7.1-7-5-1.1(c).

C. Nicotine Strength Cap

“A retailer may not sell an e-liquid that contains more than seventy-five (75) milligrams per milliliter of nicotine.”
Citation: Ind. Code § 7.1-7-5-1.1(d).

4. Taxes and Fees

• Application Fee (Retail Certificate): $25
• Surety Bond: Minimum $1,000 for e-cigarette retailers.
• Sales Tax: Standard Indiana sales tax applies to vape and nicotine products.
• Excise Tax: No state-level excise tax specifically for vapor products was identified in the current version of Indiana law reviewed.

5. Regulatory Agencies

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