{"id":373214,"date":"2016-03-31T21:35:14","date_gmt":"2016-04-01T02:35:14","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/indiana-law\/indiana-consumer-tax-laws.html"},"modified":"2016-06-20T00:00:00","modified_gmt":"2016-06-20T05:00:00","slug":"indiana-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/indiana-law\/indiana-consumer-tax-laws.html","title":{"rendered":"Indiana Consumer Tax Laws"},"content":{"rendered":"\n
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Indiana Consumer Tax Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

All states have their own consumer tax laws<\/a> that apply to all purchases, as well as the usual vices like alcohol and cigarettes. Generally, state consumer taxes are higher for goods or services that are unhealthy or not considered essential, such as liquor, cigarettes, or gambling. Most consumer sales tax revenue goes into a state’s general fund, while gasoline taxes generally fund highway maintenance and construction.<\/p>\r\n

Consumer Tax Statutes in Indiana<\/h2>\r\n

Indiana\u2019s tax on alcohol depends on how powerful the drink is: beer is the lowest at 11.5\u00a2 per gallon while distilled spirits are taxed at $2.68 per gallon. The following table highlights the basic provisions of Indiana consumer tax laws.<\/p>\r\n\r\n

Sales Tax<\/p>\r\n<\/td>\r\n

7% \u00a7\u00a76-2.5-2-2<\/p>\r\n<\/td>\r\n<\/tr>

Cigarette Tax<\/p>\r\n<\/td>\r\n

55\u00a2\/pack of 20 \u00a76-7-1-12<\/p>\r\n<\/td>\r\n<\/tr>

Gasoline Tax per Gallon<\/p>\r\n<\/td>\r\n

18\u00a2 \u00a76-6-1.1-201<\/p>\r\n<\/td>\r\n<\/tr>

Use Tax<\/p>\r\n<\/td>\r\n

7% \u00a7\u00a76-2.5-3-3<\/p>\r\n<\/td>\r\n<\/tr>

Liquor Tax<\/p>\r\n<\/td>\r\n

Beer 11.5\u00a2 \/gal.; Wine <21% 47\u00a2 per gal., >21% $2.68\/gal.; Spirits $2.68\/gal. \u00a7\u00a77.1-4-2-1; 7.1-4-3-1; 7.1-4-5-1<\/p>\r\n<\/td>\r\n<\/tr>

Gambling Tax<\/p>\r\n<\/td>\r\n

Riverboat gambling tax of 20% adjusted gross receipts \u00a74-33-13-1<\/p>\r\n<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

More and more, we purchase goods online, which can be shipped from anywhere. And if you live in the Hoosier State and do a little online shopping, you might think you\u2019re getting those items \u201ctax free.\u201d However, Indiana law requires what is known as a \u201cuse tax<\/a>\u201d which applies to taxable goods or services delivered into or used in Indiana if the vendor does not collect their own sales tax. In Indiana, the use tax rate is the same as the normal consumer sales tax rate: 7 percent. Some of the common scenarios where Indiana\u2019s use tax might apply are:<\/p>\r\n