2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 4 - PRIVILEGE AND EXCISE TAXES (§§ 67-4-101 — 67-4-3206) › Part 10 - TOBACCO TAX LAW (§§ 67-4-1001 — 67-4-1033) › Section 67-4-1029 - Delivery sales of cigarettes - Enforcement

(a)
As used in this section:
(1)
"Cigarette" has the same meaning as in §
47-31-102
; and
(2)
"Person" means and includes every individual, partnership, firm, association, corporation, limited liability company, joint-stock company, state, political subdivision, Native American tribe, tribal government or subdivision, or any other entity, group, or syndicate.
(b)
Except for sales to licensed wholesale dealers and jobbers, it is unlawful for any person to cause cigarettes either ordered by or through or purchased by or through the mail, a delivery service, the internet, telephone, or some other electronic method to be shipped or transported to any person in this state without such products having the appropriate Tennessee tax paid by a licensed wholesale dealer and jobber pursuant to the rates set forth in §§
67-4-1004
and
67-4-1005
.
(c)
After becoming a licensed wholesale dealer and jobber pursuant to §
67-4-1015
, the wholesale dealer and jobber may sell cigarettes to state retail dealers after applying the appropriate tax stamp to all packs of cigarettes sold, and after paying the appropriate tobacco tax on roll your own tobacco products.
(d)
It is unlawful for a wholesale dealer and jobber or a distributor to sell cigarettes directly to a consumer located within the state.
(e)
Retail dealers may receive and sell directly to state consumers cigarettes, including roll your own tobacco products, provided that a wholesale dealer and jobber has paid the Tennessee tobacco tax on the products.
(f)
In addition to any act that may be taken by the commissioner to enforce this section, the attorney general and reporter may bring an action to prevent or restrain violations of this section by any person, or any person controlling such person. Such action may be brought in Davidson County circuit or chancery court or any competent jurisdiction in the county where the alleged violation of this part took place or is about to take place, or in a county in which such person resides, conducts, transacts or has transacted business, or in the county in which such person can be found.
(g)
In addition to other remedies available pursuant to law, regulation, or rule, the attorney general and reporter may also seek the following:
(1)
Orders and statutory injunctions to prevent violations of this section. Such orders and injunctions shall be issued without bond being given by the state, and shall be statutory injunctions requiring a substantial showing that the nonmoving party is violating or has violated this section. In seeking such orders and injunctions, the attorney general and reporter is not required to show a likelihood of irreparable harm;
(2)
An order temporarily or permanently revoking a license or certificate authorizing the person to engage in business in this state;
(3)
A civil penalty of up to five thousand dollars ($5,000) for each violation of this section. For purposes of this subdivision (g)(3), each shipment or transport of cigarettes constitutes a separate violation; or
(4)
A civil penalty of up to ten thousand dollars ($10,000) for each and every knowing violation of the terms of an injunction or order issued under this section.
(h)
When considering the amount of civil penalties to be awarded under this section, the court should give weight and consideration to the following factors:
(1)
Whether the violation is intentional;
(2)
The good or bad faith of the violator;
(3)
Whether the person engaged in the prohibited act has violated any laws, regulations or rules relating to tobacco;
(4)
The violator's ability to pay;
(5)
The amount, number, volume, weight, cost, or other measure of cigarettes involved in the violation;
(6)
The number of packages or mailings involved in the violation;
(7)
Whether the violation is an isolated act or part of a sequence or series of violations;
(8)
The potential injury to the public;
(9)
The public's interest in eliminating the benefits derived by the violators from the violations; and
(10)
The need to deter future violations.
(i)
In any successful action initiated by the attorney general and reporter, the court shall order reimbursement to the attorney general and reporter for the reasonable costs and expenses of investigation and prosecution of actions under this section, including attorneys' fees.
(j)
Nothing in this section shall be construed to directly or indirectly modify or amend any aspect of any provisions of the Tennessee Tobacco Manufacturers Escrow Fund Act of 1999, compiled in title 47, chapter 31, the related provisions regarding the tobacco settlement funds, compiled in part 26 of this chapter, or any provisions related to civil penalties not contained in this section.
(k)
Unless otherwise expressly provided herein, the remedies and penalties provided by this section are cumulative and supplemental to each other and to the remedies and penalties available under any other laws, regulations or rules.
Amended by 2014 Tenn. Acts, ch. 749, s 6, eff. 4/22/2014.
Acts 2005, ch. 388, §§ 2 - 4.