Vape Vending Laws and Permits in Indiana

Overview of Indiana Vape Laws

Indiana enforces strict regulations on the sale, distribution, and advertising of vapor products and e-liquids. Here’s a detailed breakdown of the current legal requirements for businesses and retailers.

Age Restrictions

  • It is illegal to sell e-liquids or electronic cigarettes to individuals under the age of 21 in Indiana.
    Legal Reference: Code Ann. Section 35-46-1-10(b).

Licensing Requirements for Retail Dealers

  1. Retail Dealer’s Certificate:

    • Retail dealers selling vapor products must obtain a valid open system electronic cigarette retail dealer’s certificate issued by the Indiana Department of State Revenue.
    • Certificates are valid for one (1) year and are non-transferable.
    • A separate certificate is required for each location where vapor products are sold.
    • Certificates must be conspicuously posted at the business location.
    • Application Fee: $25.
    • Applicants must post a bond (minimum $1,000) issued by a surety company approved by the Department of State Revenue.
      Legal Reference: Code Ann. 6-7-4-10.

  2. Tobacco Sales Certificate:

    • Retail dealers selling tobacco products must obtain a valid tobacco sales certificate issued by the Alcohol and Tobacco Commission.
    • A tobacco sales certificate may be issued only to a person who owns or operates one of the following:
      • A premises consisting of a permanent structure where vapor products or electronic cigarettes are sold.
      • A premises with a cigarette vending machine.
    • Certificates must be conspicuously displayed:
      • Near an alcoholic beverage permit, if applicable.
      • In a visible location if no alcohol permit exists.
        Legal Reference: Code Ann. 7.1-3-18.5-1; 905 IAC 1-46-1.

Retail Regulations

  1. Approved Suppliers:

    • Retailers may only purchase e-liquid from an Indiana e-liquid manufacturing permit holder or distributor permit holder.
      Legal Reference: Code Ann. 7.1-7-5-1.1(b).

  2. Invoice Retention:

    • Retailers must retain invoices for e-liquid purchases for two (2) years.
      Legal Reference: Code Ann. 7.1-7-5-1.1(c).

  3. Nicotine Limits:

    • Retailers may not sell e-liquid containing more than 75 milligrams per milliliter of nicotine.
      Legal Reference: Code Ann. 7.1-7-5-1.1(d).

  4. Prohibited Ingredients:

    • E-liquids or electronic cigarettes may not contain vitamin E acetate.
      Legal Reference: Code Ann. 35-46-1-11.9.

  5. Packaging Requirements:

    • Nicotine containers must have child-resistant and tamper-evident packaging that complies with federal standards (16 CFR 1700.15(b)(1)).
    • Labels must include the nicotine addictiveness warning required under 21 CFR 1143.3.
      Legal Reference: Code Ann. 24-3-7-7; Code Ann. 7.1-7-4-6(b).

Vape Vending Machines

  • Self-Service Displays:
    • Permitted only in establishments where entry is restricted to persons 21 years or older.
      Legal Reference: Code Ann. 35-46-1-11.8(b).

Taxes on Vapor Products

  1. Retail Excise Tax:

    • A 15% excise tax applies to the retail sale of consumable materials and vapor products.
    • Retail dealers must file a tax return and pay the tax by the 15th of each month.
      Legal Reference: Code Ann. 6-7-4-9.

  2. Distributor Wholesale Tax:

    • A 15% tax is applied to the wholesale price of closed system cartridges.
    • If the cartridge is sold with a vapor product device, the tax applies only to the isolated cost of the cartridge.
      Legal Reference: Code Ann. 6-7-2-7-5.

  3. Vending Machine Sales Tax:

    • Vending machines must display a sign indicating that sales tax is included in the price.
    • If no sign is displayed, the Department of Revenue will assume the price does not include tax, and the operator must remit tax based on gross sales.
      Reference: Indiana Department of Revenue’s Sales Tax Information Bulletin #45.

Advertising Restrictions

  • E-liquid may not be marketed as a modified risk tobacco product unless explicitly designated as such by the FDA.
    Legal Reference: Code Ann. 7.1-7-5-1.1(j).

Local Licensing and Compliance

  • The Indiana Department of Health issues licenses for various vending machine types.
  • Many municipalities and counties in Indiana require separate vending machine licenses. Check with local authorities for applicable rules.