LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6460 NOTE PREPARED: Feb 10, 2025
BILL NUMBER: HB 1468 BILL AMENDED: Feb 4, 2025
SUBJECT: Supplemental Cigar Sales Certificate.
FIRST AUTHOR: Rep. Miller K BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Busch
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows the holder of a tobacco sales certificate (holder) to obtain a
supplemental cigar sales certificate (cigar certificate) that allows the holder to sell cigars on a temporary
basis at a function or event. It provides the fee for a cigar certificate is $300 and has a term of three years.
It requires the holder to give written notice to the Alcohol and Tobacco Commission (ATC) of the date and
location of the function or event where the holder proposes to sell cigars. It also provides that the ATC's
approval of the location does not authorize smoking in violation of: (1) state laws prohibiting smoking in
public places; or (2) any county, city, or town smoking ordinance.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill would increase expenditures and workload for the ATC to
create, administer, and enforce a supplemental cigar sales certificate. Any increase in expenditures would
be offset by the increase in revenue to the Enforcement and Administration Fund from the supplemental cigar
sales certificate fee.
Explanation of State Revenues: The bill creates a supplemental cigar sales certificate for a $300 fee,
obtainable by holders of a tobacco sales certificate. The bill’s provision would increase revenue to the
Enforcement and Administration Fund. While the increase in revenue is indeterminable, the impact could
be significant and would depend on the number of tobacco sales certificate holders that apply to sell cigars
at another location or temporary functions or events.
Additional Information - Based on the number of existing tobacco sales certificates, the maximum amount
of revenue in FY 2026 the supplemental cigar sales certificate could generate if all tobacco sales certificate
holders applied is $2.49 M. As of November 2024, there are 8,298 active tobacco sales certificates, with
1,399 that have been renewed so far in 2024.
The fee for a tobacco sales certificate is $200 and is paid every three years. Revenue is deposited into the
Enforcement and Administration Fund. The last five years of revenue is shown in the table below.
HB 1468 1 Tobacco Sales Certificate Revenue
FY 2020 $464,355
FY 2021 $816,755
FY 2022 $470,383
FY 2023 $593,740
FY 2024 $730,345
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected:
Information Sources: Chris Serak, Alcohol and Tobacco Commission. Peoplesoft Financial Data.
Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2024.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1468 2