Vape Vending Machines Sales Laws and Regulations in Indiana

Thinking of Launching a Vape Vending Machine in Indiana?
Here’s What You Need to Know First

Considering becoming a vape vending machine host in Indiana? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.VapeTMWhether 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.

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

Function Agency Website
Tobacco Sales Certificate Indiana Alcohol and Tobacco Commission (ATC) https://www.in.gov/atc/
Open-System Vape Retail Certificate Indiana Department of State Revenue (DOR) https://www.in.gov/dor/
Enforcement of Sales to Minors Indiana State Excise Police https://www.in.gov/atc/isep/

6. Local Ordinances

Indiana law allows cities and counties to establish local ordinances related to business licenses, vending machine placement, zoning, and signage.

Recommendation: Contact the city clerk or county zoning board where the vending machine will be placed to ensure compliance with any local restrictions or permits.

Summary Compliance Checklist

✅ Must be 21+ venue OR use ID-controlled access.
✅ Must obtain:

  • Tobacco Sales Certificate from ATC.
    • Retail Certificate for open-system vapes from DOR (if applicable).
      ✅ Must purchase only from Indiana-authorized manufacturers/distributors.
      ✅ Post required signage and certificates visibly.
      ✅ Maintain invoices for 2 years.
      ✅ Do not sell >75 mg/mL nicotine strength.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Indiana government resources for the most current regulations.

 

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