• Tobacco is taxed in the state of Tennessee.cigarettes image by bilderbox from Fotolia.com
  
  The state of Tennessee imposes a tax on tobacco products that are manufactured and/or sold within its borders, including cigarettes, cigars, manufactured tobacco and snuff. It is the responsibility of wholesalers and manufacturers to report and pay these taxes to the state government. Exceptions to taxation on tobacco products are granted for goods that are cultivated strictly for the personal use of the grower and not sold in any way.
  
  

Rates

• As of August 2010, the tax rates for cigarettes in the state of Tennessee are $0.62 on each pack of 20 cigarettes and $0.775 per pack of 25 cigarettes. Tax on other tobacco products is a uniform 6.6 percent of the wholesale cost, regardless of quantity or type. The cigarette tax in Tennessee was adopted in 1925 and rates as the 38th highest in the nation.
  
  

Licenses

• Any person selling, distributing or handling cigarettes and other forms of tobacco in Tennessee must be registered and obtain a license to do so. Persons can apply for this license through the Tennessee Department of Revenue using Form TOB 555; the license must be renewed on or before May 31 of each year. Fees are levied based on what type of tobacco business is being engaged in. The application can be downloaded from the Tennessee Department of Revenue website or obtained at one of six locations statewide.
  
  

Reporting

• Any licensed person who sells cigarettes and other tobacco products on a wholesale level in Tennessee must regularly report all related activity on the state tax form TOB 552. It is due on the 15th of every month, for all tobacco sales in the preceding month. Retailers who purchase tobacco products for resale to the public, as well as manufacturers who are not licensed in Tennessee, must report these sales on Schedule C of their tax return, using their cost price. Accountability is required by law; every dealer or distributor of tobacco products is subject to inspection at any time by the tobacco commissioner or an authorized representative. The inspection can cover the tobacco products themselves, as well as all invoices, books, papers and accounting records.
  
  

Certification Form

• In addition to being registered and licensed to sell cigarettes and tobacco products in Tennessee, each seller must also obtain a certification for listing on the Tennessee Directory of Compliant Tobacco Product Manufacturers. This can be obtained with Official Form 114477, available on the state's Department of Revenue website.
  
  

Jenkins Act

• Since 2005, because of the Jenkins Act in Title 15 U.S. code 375-378, any business that sells tobacco products for profit over the Internet or mail order to residents within Tennessee must pay taxes on these sales. They must be licensed by the Department of Revenue and file a detailed memorandum by the tenth day of each month.