Why is smokeless nicotine exempt from Tennessee's Tobacco Tax

May 06, 2021 at 08:00 am by robmtchl


Public Chapter 69 (2021),

Effective March 31, 2021, the Tennessee General Assembly amended the definitions of “cigarette” and “tobacco products” and added a new definition of “smokeless nicotine product.” This is to clarify that smokeless nicotine products are not subject to Tennessee tobacco tax.

Tennessee Tobacco Tax Tennessee imposes a tax on the privilege of selling cigarettes and other tobacco products (“OTP”). Cigarettes are taxed at $0.62 cents per pack of 20 and OTP is taxed at 6.6% of the wholesale cost. Public Chapter 69 amends the definition of both cigarettes and tobacco products to specifically exclude smokeless nicotine products.

Smokeless nicotine product” means, in pertinent part, nicotine that is in the form of a solid, gel, gum, or paste that is intended for human consumption. Smokeless nicotine product does not include tobacco or tobacco products such as snuff or chewing tobacco. These items remain subject to Tennessee tobacco tax. Therefore, all smokeless nicotine products meeting this definition are not subject to the Tennessee tobacco tax levied on cigarettes or OTP.

For More Information Visit www.tn.gov/revenue.  References Tenn. Code Ann. §§ 67-4-1001(2), 1001(23), -1005,

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