A provision buried in HB1052 creates a new state compliance requirement and annual fee for Indiana businesses that distribute tobacco or e-cigarettes to other resellers.
Most Indiana restaurant owners don't realize that a new state requirement affecting tobacco sales is already on the books—and it takes effect July 1, 2026. If your restaurant sells, trades, or distributes tobacco products or electronic cigarettes to other businesses that resell them, you need to understand what's coming.
Indiana HB1052, a bill addressing various administrative law matters, includes a provision (Section 29, pages 17–18) that creates a mandatory wholesale tobacco sales certificate for the first time at the state level. Any business in Indiana that sells, barters, exchanges, or distributes tobacco products or electronic cigarettes to other certificate holders for resale must now obtain this certificate from the state.
Before this bill, no such state-level wholesale certificate existed. This is a brand-new compliance obligation.
The requirement applies to wholesalers and distributors—but the language is broad enough to capture restaurants and other food service operations that may supply tobacco or e-cigarettes to other businesses. If you're selling these products to other retailers or resellers (not just to end consumers), you likely fall under this requirement.
If you only sell tobacco products directly to customers for personal use—the typical restaurant or bar scenario—this may not apply to you. But if your restaurant supplies other businesses, you need to plan now.
The certificate costs $100 per year. It's a recurring fee, not a one-time cost. The effective date is July 1, 2026, which means businesses have roughly 18 months from now to understand whether they're affected and to prepare for compliance.
Review your current tobacco and e-cigarette sales practices. Ask yourself: Do we sell these products to other businesses for resale, or only to end consumers? If you're unsure whether you're a wholesaler under this definition, document your current sales channels and speak with your accountant or attorney before the deadline.
If you do distribute tobacco products to other resellers, budget for the $100 annual fee starting in your 2026 fiscal year, and plan to apply for the certificate before July 1, 2026. The state will likely publish application procedures and more details as the effective date approaches.
Mark your calendar for mid-2026 and check the Indiana Department of Revenue website periodically for guidance on how to apply and what documentation you'll need.
Source: Indiana HB1052, Section 29 (pages 17–18); effective July 1, 2026.