Ind. Code ch. 7.1-4-6

Ind. Code ch. 7.1-4-6
in effect

Ind. Code § 7.1-4-6-1 Powers of commission and department

Sec. 1. The chairman and the department shall have the power to examine the books, papers, records, and premises of a manufacturer, wholesaler, retailer, dealer, or direct wine seller's permit holder under this title for the purpose of determining whether the excise taxes imposed by this title have been paid fully and whether the provisions of the title are being complied with. [Pre-1973 Recodification Citation: 7-1-1-41(e).] Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.56, SEC.17. As amended by P.L.165-2006, SEC.36.

Ind. Code § 7.1-4-6-2 Penalties for noncompliance

Sec. 2. (a) The owner, possessor, or person in control of premises where there is the presence of alcoholic beverages or other articles subject to excise taxes or other fees imposed under this article, but that have not been paid, shall be liable for all the taxes and fees due and unpaid, even though the presence or the possession is unlawful under this title. In addition, penalties for unpaid fees shall be assessed as follows: (1) In the case of fraud the department shall assess and collect a penalty in an amount equal to the unpaid fees. (2) In the case of mistake, inadvertence, or negligence, not amounting to fraud, the department shall assess and collect a penalty in an amount equal to ten percent (10%) of the unpaid fees. (b) A person that is liable for the payment of any tax or other fee under this article is subject to the penalty imposed under subsection (a) if the person fails to: (1) timely remit the full tax or fee; or (2) timely submit an alcoholic beverage excise tax return, including an information return or report, or a return showing no tax liability, and all required attachments. (c) With regard to unpaid taxes described under subsection (a), penalties shall be assessed under IC 6-8.1. (d) If a person fails to pay the full amount of tax due on or before the due date, the discount for timely payment will be disallowed. [Pre-1973 Recodification Citation: 7-1-1-41(e).] Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.56, SEC.18. As amended by Acts 1977, P.L.96, SEC.1; P.L.6-1987, SEC.16; P.L.103-1987, SEC.2; P.L.104-1987, SEC.3; P.L.128-2026, SEC.91.

Ind. Code § 7.1-4-6-2.1 Rules and regulations to enforce noncompliance penalties

Sec. 2.1. The commission may adopt rules under IC 4-22-2 to coordinate compliance with the laws, rules, and administrative policies governing the assessment and collection of sales taxes. As added by Acts 1977, P.L.96, SEC.2. Amended by P.L.204-2001, SEC.45; P.L.128-2026, SEC.92.

Ind. Code § 7.1-4-6-3 Collection of excise taxes; responsibility for paying alcoholic beverage tax

Sec. 3. (a) The department shall collect the excise taxes imposed by this title. (b) An alcoholic beverage subject to a tax under this article shall be taxed only once, at the first sale or withdrawal for sale, in the following manner: (1) When a primary source of supply located within Indiana sells, or withdraws for sale, alcohol to a person in Indiana, the primary source of alcohol is responsible for paying the tax. (2) When a wholesaler located within Indiana receives alcohol from a primary source of supply not located in Indiana, the wholesaler located within Indiana is responsible for paying the tax. (3) When a permit holder sells, or withdraws for sale, alcohol directly to a retailer or consumer, the permit holder is responsible for paying the tax. [Pre-1973 Recodification Citation: 7-1-1-41(f).] Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.56, SEC.19. As amended by P.L.128-2026, SEC.93.

Ind. Code § 7.1-4-6-3.5 Collection of excise taxes; electronic filing of returns and remitting of taxes

Sec. 3.5. (a) A person who is liable for the payment of an excise tax levied by this title shall file a monthly return with the department on or before the twentieth day of the month following the month in which the liability for the tax accrues by reason of the manufacture, sale, gift, or the withdrawal for sale or gift, of alcoholic beverages within this state. (b) The department may require the reporting of any information reasonably necessary to determine the amount of excise tax due. (c) The return required by this section must be filed in an electronic format as prescribed by the department. Payment of the excise tax due shall accompany the return, and shall be remitted electronically. Any other returns or forms required to be filed under this title must also be filed in an electronic format and on a date prescribed by the department. Formerly: Acts 1973, P.L.56, SEC.20. As amended by P.L.166-2014, SEC.36; P.L.137-2022, SEC.100.

Ind. Code § 7.1-4-6-3.7 Procedure to claim deduction or refund for an alcoholic beverage tax

Sec. 3.7. (a) A person may claim a deduction on the monthly return under the following circumstances: (1) the person made an exempt sale or withdrawal for sale of an alcoholic beverage under section 5.5 of this chapter. (2) an alcoholic beverage was damaged or destroyed while in the person's possession; or (2) an alcoholic beverage was returned by the person to the primary source of supply. (b) In order to claim a deduction or receive a refund of an alcoholic beverage excise tax, the following proof must be retained: (1) For an exempt sale under section 5.5 of this chapter, the following: (A) If the sale is to the United States government, its agencies, or its instrumentalities, copies of the invoice stating the regular selling price less the excise tax. (B) If the sale is to a person other than the United States government, its agencies, or its instrumentalities, copies of the invoice showing: (i) the purchaser's name; (ii) the address; (iii) the date; (iv) the amount of beer sold; and (v) any other information reasonably required by the department. (2) For returned alcoholic beverages, copies of the invoice or invoices showing the following: (A) Name of the primary source of supply. (B) Credit invoice number. (C) Date returned. (D) Date excise tax was paid. (E) Gallons returned. (3) For alcoholic beverages that have been damaged or destroyed, any information reasonably required by the department. (c) If this deduction exceeds the liabilities owed to the state on that monthly return, the department shall refund the tax to the person. (d) If the person does not claim the deduction on the monthly return, the refund procedures under IC 6-8.1-9-1 will apply. (e) The tax paid on alcoholic beverages subsequently lost or stolen cannot be deducted, refunded, or credited. As added by P.L.128-2026, SEC.95.

Ind. Code § 7.1-4-6-4 Discount for timely payment

Sec. 4. The department shall allow a taxpayer a discount of one and one-half percent (1 1/2%) of the amount of excise taxes otherwise due for the accurate reporting and timely remitting of the excise taxes imposed by this title. [Pre-1973 Recodification Citation: 7-2-1-17(c).] Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.56, SEC.22. As amended by P.L.128-2026, SEC.96.

Ind. Code § 7.1-4-6-5 When sale is made

Sec. 5. For alcoholic beverage excise tax purposes, a sale shall not be deemed to have been made until the goods leave the custody of the seller. [Pre-1973 Recodification Citation: 7-2-1-17(c).] Formerly: Acts 1973, P.L.55, SEC.1. As amended by P.L.128-2026, SEC.97.

Ind. Code § 7.1-4-6-5.5 Certain sales or withdrawals of alcoholic beverages exempt from tax

Sec. 5.5. (a) Sales or withdrawals from sale of alcoholic beverages intended for export to a state outside Indiana are exempt from alcoholic beverage excise tax. (b) Sales or withdrawals of alcoholic beverages for sale to the United States government, its agencies, and instrumentalities, including military facilities, are exempt from alcoholic beverage excise tax. However, sales to individuals, private stores, or concessionaires located upon federal areas are not exempt. (c) Sales or withdrawals for sale of wine to a pastor, rabbi, or priest for sacramental or religious purposes are exempt only from the liquor excise tax (IC 7.1-4-3) and the wine excise tax (IC 7.1-4-4). (d) Lost or stolen alcoholic beverages are not exempt from the alcoholic beverage excise tax. As added by P.L.128-2026, SEC.98.

Ind. Code § 7.1-4-6-6 Floor stock tax not imposed

Sec. 6. The provisions of this article shall not be construed as imposing a floor stock tax on the goods held by a permittee of any type under this title. [Pre-1973 Recodification Citation: 7-2-1-17(c).] Formerly: Acts 1973, P.L.55, SEC.1. As amended by P.L.128-2026, SEC.99.

Ind. Code § 7.1-4-6-7 Appropriation for administration

Sec. 7. There shall be an annual appropriation, from the sum of money allocated to the general fund by this title, of a sum of money necessary for the purpose of carrying out the provisions of this title. The claims for operating expenses incurred under the provisions of this title shall be filed with and paid by the state comptroller. Equipment shall be purchased only upon a requisition approved by the department of administration. [Pre-1973 Recodification Citation: 7-1-1-41(f).] Formerly: Acts 1973, P.L.55, SEC.1. As amended by P.L.9-2024, SEC.272; P.L.128-2026, SEC.100.

Ind. Code § 7.1-4-6-8 Duty of attorney general and local prosecutor

Sec. 8. (a) If a person who holds a permit under this title: (1) fails to account for, or pay over to the chairman or the department, or both, an annual license fee, or excise tax, or other levy imposed by this title; (2) defaults in a condition of the person's bond; or (3) fails or refuses to pay to the chairman or the department an obligation, liability, forfeiture, or penalty imposed upon the person by this title, whether the person is licensed under this title or not; the chairman or the department shall report that fact to the attorney general of Indiana who shall immediately institute the necessary action for the recovery of the sum due the state by reason of this title. (b) The state shall be entitled to all liens and remedies allowed by law for the collection of the sum due the state. (c) It is the duty of the prosecuting attorney of the proper county to assist the attorney general in these matters whenever the attorney general requests his assistance. [Pre-1973 Recodification Citation: 7-1-1-42(1).] Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.56, SEC.23. As amended by P.L.128-2026, SEC.101.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/7.1Fetched: 10/17/2026

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