TN Code § 67-4-1020 (2021)
2021 Tennessee Code|Title 67 - Taxes and Licenses|Chapter 4 - Privilege and Excise Taxes|Part 10 - Tobacco Tax Law|§ 67-4-1020. Property Deemed Contraband — Seizure

   All manufactured tobacco products upon which all applicable tobacco taxes have not been paid and that are or shall be owned or possessed by any person in avoidance, evasion or violation of any of the provisions of this part, are declared to be contraband goods and may be seized by the commissioner, or any duly authorized representative, agent or employee of the department, without a warrant, and such goods shall be delivered to the department for sale at public auction to the highest bidder after due advertisement.   The department, before delivering any of such goods so seized, shall require the purchaser to affix the proper amount of stamps to any cigarettes and pay the applicable tax on any other tobacco products so seized.   Proceeds of all such seizures shall be paid by the commissioner into the state treasury, and ten percent (10%) of such proceeds shall be set aside as expenses for the administration of this section.     Any vehicle that may be used for transporting, for the purposes of distribution, gift or sale, any unstamped tobacco products shall likewise be subject to confiscation and sale in the same manner as provided in subsection (a), unless such vehicle is being used to transport such products in a manner deemed lawful as otherwise provided in this part. Any unstamped tobacco products found in any vehicle, except vehicles lawfully engaged in transporting such unstamped products, shall be prima facie evidence that such were intended to be used for gift, sale or distribution.   This section shall likewise apply to any coin-operated vending machine in which any tobacco products are found, stored or possessed with the tobacco products bearing a counterfeit or bogus tobacco tax stamp or any unstamped tobacco products, such vending machine and tobacco products are declared to be contraband property and shall be subject to confiscation and sale as provided for in this part. Any such vending machine found containing such tobacco products with counterfeit or bogus stamps or containing any unstamped tobacco in such vending machine shall be prima facie evidence that it was there for gift, sale or distribution.    Any tobacco products found, owned, stored or possessed by any person bearing a counterfeit or bogus tobacco tax stamp are likewise declared to be contraband property, and shall be subject to confiscation and sale as provided by this section. Any such tobacco products shall be prima facie evidence that they were owned, stored or possessed for gift, sale or distribution.   Likewise, any unstamped tobacco products found, owned, stored or possessed at the same place or at the same time with any other tobacco products bearing counterfeit or bogus tax stamps are likewise declared to be contraband property and shall be subject to confiscation and sale as provided by this section. Such unstamped tobacco products shall be prima facie evidence that they were owned, stored or possessed for gift, sale or distribution.      The possession of any counterfeit or bogus stamps, including any article, device, meter, mechanical or otherwise, that is used for the purpose of or in connection with the counterfeiting of tobacco tax stamps on tobacco products, or the unauthorized possession of a tobacco or cigarette stamp tax machine, meter, or ink that has been approved by the department for the use with the lawful tobacco tax stamps, is declared to be contraband property.   The unstamped tobacco products shall be subject to seizure and confiscation, and sale in the manner as other property provided by this section.   Any person violating this subsection (e) shall, upon conviction, be punished in accordance with the penalty prescribed under § 67-4-1007.     Any money or coins found or recovered in any cigarette or tobacco vending machine, which machine has been ordered forfeited to the state of Tennessee under this part, shall likewise be forfeited to the state of Tennessee and the money paid into the state treasury by the commissioner.   If, incidental to a confiscation of contraband as defined by this section, there is discovered any intoxicating liquor deemed to be held or transported illegally within the purview of § 57-3-411, § 57-9-201 or § 57-9-202, the confiscating officer is empowered and required to seize such liquor, notwithstanding the fact that such officer may not otherwise be empowered to take such action under § 57-3-411, § 57-9-201 or § 57-9-202. Any intoxicating liquor seized pursuant to this subsection (g) shall be delivered promptly as provided by § 57-3-411, § 57-9-201 or § 57-9-202, as may be appropriate, to the alcoholic beverage commission for sale or disposition as contraband in accordance with title 57.