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Cigarette Tax Increase Enforcement

Effective July 1, 2007, Public Chapter 368 increased the tax on cigarettes from $0.20 to $0.62 per pack. Additional revenue from the increase is earmarked for education (approximately $195 million annually), agricultural enhancements ($21 million annually) and trauma centers statewide ($12 million annually).

Note to consumers: Possessing more than 20 packs (or two cartons) of cigarettes not bearing Tennessee revenue stamps is a violation of Tenn. Code Ann. 67-4-1019.  Such products and any
vehicle(s) used to transport them are considered contraband and are subject to seizure. Possession of more than 25 cartons is a Class E felony, while possession of more than two but less than 25 cartons is a misdemeanor.

The Department's Special Investigations Section is prepared to enforce laws pertaining to trafficking cigarettes across state lines and purchasing them via the Internet. As part of this enforcement program, the Department is reaching out to consumers to educate them regarding the laws addressing the purchase of cigarettes outside of the state and via the Internet. Unstamped cigarettes and Master Settlement Agreement violations are also contraband and subject to seizure. Special Investigations is committed to vigorously enforcing these provisions as well.

Jan. 16, 2008: Attorney General Opinion Supports Border Surveillance Enforcement Program

View full opinion at http://www.tennessee.gov/revenue/misc/opinion08-05.pdf.

Jan. 3, 2008: Revenue Releases December Seizure Numbers

In December 2007, 810.4 cartons of contraband cigarettes were seized by the Tennessee Department of Revenue.

Dec. 6, 2007: Revenue Releases November Seizure Numbers

In November 2007, 1,156.7 cartons of contraband cigarettes were seized by the Tennessee Department of Revenue.

Nov. 5, 2007: Revenue Releases October Seizure Numbers

In keeping with Revenue's policy of monthly figure releases (i.e., revenue collections), monthly totals for contraband cigarettes will be released via the Web site. Totals of seized contraband cigarettes will be released near the beginning each month for the prior month by number of cartons.

In October 2007, 900.9 cartons of contraband cigarettes were seized by the Tennessee Department of Revenue. In September 2007, 288.5 cartons of contraband cigarettes were seized.

Sept. 21, 2007: Revenue Plans for Cigarette Surveillance at State Line

NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigations Section will be conducting surveillance of out-of-state tobacco retailers located near the state line for Tennessee residents purchasing cigarettes. On July 1, 2007, Tennessee's cigarette tax increased from 20 cents per pack to 62 cents per pack.

"As a result of this legislation, Tennesseans may travel to neighboring states to purchase cigarettes in order to avoid paying Tennessee cigarette tax," said Revenue Commissioner Reagan Farr. "Tennesseans should know that the law requires cigarettes purchased outside of the state to bear a Tennessee tobacco stamp, otherwise the cigarettes may be considered contraband." More ...

For more information, visit the Smokefree Tennessee Web site.