Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-03 - Unfair Cigarette Sales Law and Tobacco Tax Rules
Section 1320-04-03-.02 - CIGARETTE TAX STAMPS-PURCHASE AND USE OF

(1) Agents appointed to affix cigarette tax stamps shall purchase such stamps only from the Commissioner or his authorized agents, and in no instance shall they be permitted to sell stamps not affixed to packages of cigarettes. The act of bartering, loaning, giving away, purchasing, or acquiring unaffixed cigarette tax stamps by and means other than as set out herein is strictly prohibited.

(2) Affixing agents desiring to purchase cigarette tax stamps on a deferred payment plan may do so only from the main office of the Department or one of its regional offices, the office from which stamps may be purchased by each agent to be approved in advance by the Commissioner.

(3) Only licensed manufacturing distributors and wholesale dealers and jobbers may be eligible to purchase cigarette tax stamps at the discount rates set by the Commissioner as authorized by T.C.A. § 67-4-1009, provided such licensee is complying with the provisions of the law and the rules and regulations promulgated in accordance therewith.

(4) Any person using a machine to affix cigarette tax stamps shall so supervise the use of the machine that each and every stamp affixed to a package of cigarettes shall be completely legible and identifiable as a valid stamp. Packages of cigarettes bearing illegible or mutilated cigarette tax stamps shall be deemed to be unstamped and shall be subject to confiscation. Violation of this section shall also be grounds for revocation of license upon proper show cause hearing.

(5) Persons purchasing unstamped confiscated cigarettes and other tobacco products from the state shall purchase sufficient cigarette tax stamps from the Commissioner and affix same to such cigarettes and pay the applicable tobacco tax on cigars and other tobacco products. Applicable tax on cigars and other tobacco products shall be paid by the purchaser directly to the Commissioner at time of delivery to the purchaser.

(6) Cigarette tax stamps evidencing payment of the applicable tax shall be applied to the bottom of each individual standard package of twenty (20) cigarettes. However, in those instances where the package of twenty (20) cigarettes is of such dimensions it cannot be processed by the stamping machine, the cigarette tax stamp may be affixed to the side of the package.

(7) Agents appointed by the Commissioner to affix cigarette tax stamps shall, under the provisions of T.C.A. § 67-4-1019, be permitted to perform a service for other licensees by affixing such stamps to cigarettes and/or paying tax on other tobacco products where such cigarettes and other tobacco products belong to such other licensees. Such affixing agents shall issue in duplicate invoices indicating the name and address of the licensee for whom stamps were affixed and the quantity of such stamps. Likewise, affixing agents paying tax on other tobacco products belonging to other licensees shall issue duplicate invoices indicating the name and address of the licensee for whom tax was paid, the date tax was paid and the quantity and type by brand name of such products. One copy of such invoices shall be retained by the affixing agent and one copy shall be given to the licensee for whom cigarette tax stamps were affixed and/or tax was paid on other tobacco products.