reglab/statecodes huggingface dataset:
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 20 - EXCISE TAX LAW OF 1999 (§§ 67-4-2001 — 67-4-2023) › Section 67-4-2005 - Doing business in state is taxable privilege

Doing business in Tennessee by any person or taxpayer, and/or exercising the corporate franchise, is declared to be a taxable privilege. The tax is an accrued tax and is imposed for the exercise of the specified privilege during the period that coincides with the tax year covered by the return required.
Acts 1999, ch. 406, § 3.
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 20 - EXCISE TAX LAW OF 1999 (§§ 67-4-2001 — 67-4-2023) › Section 67-4-2010 - Taxation of persons doing business outside state

(a)
Any taxpayer having business activities that are taxable both inside and outside this state shall allocate or apportion its net earnings or losses as provided in this part. A taxpayer is considered taxable in another state only if the taxpayer is conducting activities in that state that, if conducted in Tennessee, would constitute doing business in Tennessee and would subject the taxpayer to either Tennessee's franchise tax or excise tax.
(b)
Nonbusiness receipts shall not be included in the numerator or denominator of any apportionment formula.
Acts 1999, ch. 406, § 3; 2006, ch. 1019, § 22.
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 20 - EXCISE TAX LAW OF 1999 (§§ 67-4-2001 — 67-4-2023) › Section 67-4-2016 - Collection - Dissolved entities

(a)
The commissioner is empowered and it is the commissioner's duty to collect the tax, together with penalty and interest, levied under this part from any officer, stockholder, partner, member, principal, or employee of a taxpayer that is out of business or has dissolved, liquidated, otherwise terminated at a time when it has refused or failed to pay the excise tax levied under this part, and any such officer, stockholder, partner, member, principal, or employee has received property belonging to the taxpayer, but such collection shall be limited to the value of the property received.
(b)
The commissioner is empowered to certify to the secretary of state the name of any taxpayer that fails or refuses to file any statement or return or to pay any fee or tax required by this part; however, no certification shall be issued until such statement, return, or tax has remained delinquent for a period of ninety (90) days.
(c)
At the time of such certification to the secretary of state, the commissioner shall give notice to the taxpayer of the action taken. Thereupon, the charter or certificate of such taxpayer or its domestication in Tennessee shall stand as automatically dissolved or revoked and the secretary of state shall note such revocation or dissolution upon the secretary of state's records.
(d)
At any time after the date of revocation or dissolution, such charter or certificate or domestication may be reinstated upon the filing of all reports and the payment of all fees, taxes, penalty and interest due the state; provided, that the title has not been taken by another taxpayer.
Acts 1999, ch. 406, § 3.
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 20 - EXCISE TAX LAW OF 1999 (§§ 67-4-2001 — 67-4-2023) › Section 67-4-2019 - Exemption for distributions to publicly traded real estate investment trust (public REIT)

There shall be exempt from the payment of the excise tax levied under this part any person treated as a partnership for federal tax purposes that directly or indirectly distributes one hundred percent (100%) of its net earnings or net losses to a public REIT.
Acts 2006, ch. 1019, § 12.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2101 - Short title

This part shall be known and may be cited as the "Franchise Tax Law of 1999."
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2102 - Tax for state purposes only

The tax imposed in this part is a state tax for state purposes only and no county or municipality or taxing district shall have power to levy any like tax.
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2104 - Doing business in Tennessee a taxable privilege

Doing business in Tennessee by any person or taxpayer, and/or exercising the corporate franchise, are declared to be taxable privileges. The tax is an accrued tax and is imposed for the exercise of the specified privilege during the period that coincides with the tax year covered by the return required.
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2107 - Tax diminished by operating deficits or business losses deemed impairment of capital

(a)
Where a corporation doing business without surplus or undivided profits has had the value of its capital stock impaired by operating deficits or other business losses, such as fire, flood, tornado, or other natural disasters, and where such deficit or loss is carried upon the books and records of the corporation as an impairment of capital, the measure of the tax shall be diminished by such loss or deficit.
(b)
If the capital stock of a corporation that is a subsidiary of another corporation or closely affiliated with another corporation by stock ownership is inadequate for its business needs apart from credit extended or indebtedness guaranteed by the parent or an affiliated corporation, in determining the amount of capital, surplus and undivided profit of such corporation with respect to its liability for the tax imposed by this part, there shall be included in the measure of the tax the indebtedness owed to or guaranteed by the parent or an affiliated corporation. If necessary to apportion such indebtedness, the methods of allocation set forth in this part shall be used.
Amended by 2013 Tenn. Acts, ch. 321, Secs.s 4, s 5 eff. 5/13/2013.
Acts 1999, ch. 406, § 4; 2000, ch. 982, § 32; 2002, ch. 729, § 1; 2004, ch. 932, § 6.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2108 - [Repealed]

Repealed by 2024 Tenn. Acts, ch. 950,s 2, eff. 5/10/2024.
Amended by 2023 Tenn. Acts, ch. 377, s 22, eff. 5/11/2023.
Amended by 2022 Tenn. Acts, ch. 1139, s 2, eff. 7/1/2022.
Acts 1999, ch. 406, § 4; 2000, ch. 982, §§ 33, 51, 57; 2000, ch. 983, § 12; 2004, ch. 924, §§ 5, 18; 2006, ch. 1019, § 10; 2009 , ch. 530, § 14; 2010 , ch. 1134, § 39.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2110 - Apportionment for persons doing business outside state

(a)
Any taxpayer having business activities that are taxable both inside and outside the state of Tennessee shall allocate or apportion its net worth as provided in this part. A taxpayer is considered taxable in another state only if the taxpayer is conducting activities in that state that, if conducted in Tennessee, would constitute doing business in Tennessee and would subject the taxpayer to either Tennessee's franchise tax or excise tax.
(b)
Nonbusiness receipts shall not be included in the numerator or denominator of any apportionment formula.
Acts 1999, ch. 406, § 4; 2006, ch. 1019, § 23.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2115 - Filing of return

(a)
The franchise tax return shall be filed as provided in §
67-4-2015
. On any return covering less than a twelve-month period, including the return of a taxpayer in final return status, but excluding any return based on a fifty-two to fifty-three-week year, the franchise tax shall be prorated to cover the proportionate part of the year covered by the return. In the event the taxpayer's taxable year is closed within less than twelve (12) months of incorporation, formation, domestication, or commencing of business, the franchise tax of a domestic entity shall be prorated to cover the proportionate part of the year since the date of incorporation or formation, or the date of commencing business, whichever occurred first. The franchise tax of a taxpayer formed outside of Tennessee shall be prorated to cover the proportionate part of the year since beginning business in this state. Proration of the franchise tax shall be computed by a fraction based on a days method.
(b)
If a person or taxpayer in final return status effects a complete liquidation that is initiated and completed on the same date, then the franchise tax shall be computed utilizing net worth on the date immediately preceding the liquidating event; otherwise, on any return of a taxpayer in final return status, the franchise tax shall be computed by using the average monthly value of net worth. Such average monthly value shall be determined by totaling the value of net worth as of the final day of each month of the tax period and then dividing that total by the number of months in the tax period. In the event the taxpayer is part of an affiliated group that has elected to compute its net worth on a consolidated basis, such election shall not apply to the taxpayer while it is in final return status unless the entire affiliated group is in final return status during the same tax period, in which case the election shall continue to apply to the taxpayer.
Amended by 2024 Tenn. Acts, ch. 950,s 14, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 13, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 12, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 11, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 10, eff. 5/10/2024.
Amended by 2013 Tenn. Acts, ch. 321, s 7, eff. 5/13/2013.
Acts 1999, ch. 406, § 4; 2005, ch. 499, § 82.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2116 - Failure to file tax return - Revocation of charter or certificate - Reinstatement

(a)
The commissioner is empowered to certify to the secretary of state the name of any taxpayer that fails or refuses to file any statement or franchise and excise tax return required by parts 20 or 21 of this chapter, or to pay any fee or tax required by this chapter; however, no certification shall be issued until such statement, return, or tax has remained delinquent for a period of ninety (90) days.
(b)
At the time of such certification to the secretary of state, the commissioner shall give notice to the taxpayer of the action taken. Thereupon, the charter, certificate of such taxpayer or its domestication in Tennessee shall stand as automatically dissolved or revoked, and the secretary of state shall note such revocation or dissolution upon the secretary of state's records.
(c)
At any time after the date of revocation or dissolution, such charter, or certificate or domestication may be reinstated upon the filing of all reports and the payment of all fees, taxes, penalty and interest due the state; provided, that the title has not been taken by another taxpayer.
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2117 - Collection - Dissolved entities

The commissioner is empowered and it is the commissioner's duty to collect the tax, together with penalty and interest, levied under this part from any officer, stockholder, partner, member, principal, or employee of a taxpayer that has dissolved or has been liquidated, at a time such taxpayer has refused or failed to pay the franchise tax levied under this part, and such individual has received property belonging to the taxpayer, but such collection shall be limited to the value of the property received.
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2119 - Minimum franchise tax

The minimum franchise tax payable under this part shall be one hundred dollars ($100). A taxable entity that is incorporated, domesticated, qualified or otherwise registered to do business in Tennessee but is, or has become, inactive in Tennessee, or whose charter, domestication, qualification or other registration is forfeited, revoked or suspended without the entity being properly dissolved, surrendered, withdrawn, cancelled or otherwise properly terminated, shall not be relieved from filing a return and paying the franchise tax, which shall be no less than the one-hundred-dollar minimum, levied by this part for each tax year.
Acts 1999, ch. 406, § 4; 2000, ch. 982, § 38.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2120 - Distribution of tax revenues

All taxes collected under this part shall be distributed to the general fund.
Acts 1999, ch. 406, § 4.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2121 - Tax imposed on manufacturer

(a)
Notwithstanding any provision of this part to the contrary, the tax imposed by this part on any manufacturer shall be levied only on the first two billion dollars ($2,000,000,000) of apportioned net worth.
(b)
For purposes of this section, "manufacturer" means any person whose principal business is fabricating or processing tangible personal property for resale and ultimate use or consumption off the premises of the person engaging in such fabricating or processing.
Amended by 2024 Tenn. Acts, ch. 950,s 16, eff. 5/10/2024.
Acts 2005, ch. 499, § 61.
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 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2123

If the application of this part to a tax period results in a lower tax base than the minimum tax base under § 67-4-2108, as that section existed prior to the effective date of this act, and as it applied to tax periods ending before December 31, 2023, then a taxpayer may annually elect to use the minimum tax base in § 67-4-2108 as it applied to tax periods ending before December 31, 2023; provided, however, the election must result in a higher tax levied for the tax period under § 67-4-2106, and the taxpayer waives any claim that the minimum tax base under § 67-4-2108 is unconstitutional by failing the internal consistency test.
Added by 2024 Tenn. Acts, ch. 950,s 17, eff. 5/10/2024.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2201 - Short title

This part shall be known and may be cited as the "Coin-operated Amusement Machine Tax Act."
Acts 2002, ch. 856, § 2b.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2202 - Tax imposed - Supervision and collection - Rules and regulations

(a)
The state tax imposed by this part shall be the exclusive tax levied on bona fide coin-operated amusement machines. No local government may impose any additional tax, fee, or assessment of any kind on such machines. Nothing contained in this part shall affect any person's liability for state or local sales or use tax that is imposed pursuant to chapter 6 of this title for the privilege of selling or using such devices. The receipts from bona fide coin-operated amusement machines shall not be the basis of tax under chapter 6 of this title.
(b)
The supervision and collection of the taxes imposed by this part are under the direction of the department of revenue. The commissioner of revenue is authorized to promulgate rules and regulations to effectuate the purposes of this part. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c)
The taxes imposed by this part shall be administered and collected on an annual basis for the privilege of owning bona fide coin-operated amusement machines used commercially for public play for tax years beginning on July 1 and ending on the following June 30.
Acts 2002, ch. 856, § 2b.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2203 - Part definitions

As used in this part, unless the context otherwise requires:
(1)
"Applicant" or "licensee" means an owner as defined in this section, who is licensed to do business in this state, including an owner's officers, directors, shareholders, individuals, members of any association or other entity not specified, and, when applicable in context, the business entity itself;
(2)
"Bona fide coin-operated amusement machine" means any coin or token operated game, machine or device that, as a result of depositing a coin, token or other object, automatically or by or through some mechanical or electronic operation involving skill, chance, or a combination thereof, affords music, amusement, or entertainment of some character without vending any merchandise. "Bona fide coin-operated amusement machine" does not include any bona fide merchandise vending machines as defined in rules promulgated by the department of revenue, or any device operated for the purpose of unlawful gambling;
(3)
"Business owner or business operator" means an owner or operator of a business where one (1) or more bona fide coin-operated amusement machines are available for commercial use and play by the public;
(4)
"Commissioner" means the commissioner of revenue;
(5)
"Machine tax" means the annual per machine tax that every owner of a bona fide coin-operated amusement machine in commercial use must pay;
(6)
"Master license" means the certificate that every owner of a bona fide coin-operated amusement machine must obtain and display in the business owner's or business operator's place of business where the machine is located for commercial use by the public for play, in order to operate the machine in this state legally;
(7)
"Owner" means any person, individual, firm, company, association, or other business entity owning any bona fide coin-operated amusement machine. "Owner" does not include an individual who owns a bona fide coin-operated amusement machine solely for personal use and who does not make the machine available for play by others at a charge, either directly or indirectly; and
(8)
"Sticker" means the decal issued for each bona fide coin-operated amusement machine to show proof of payment of the machine tax.
Acts 2002, ch. 856, § 2b.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2205 - Machine tax - Sticker

(a)
For the privilege of owning a bona fide coin-operated amusement machine offered for commercial use and for play by the public, there is additionally levied a machine tax of ten dollars ($10.00) for each bona fide coin-operated amusement machine. The owner shall pay the machine tax to the commissioner prior to making a machine available for commercial use and for play by the public. If, after payment of the master license tax and machine taxes, an owner obtains additional bona fide coin-operated amusement machines, the owner shall pay to the commissioner a ten-dollar machine tax for each machine, prior to making a machine available for commercial use and for play by the public. No refund or credit of a machine tax levied in this section shall be made.
(b)
The commissioner shall issue a sticker to evidence the payment of the machine tax. The owner shall securely affix a sticker to each machine available for commercial use and for play by the public. Owners may transfer stickers from one (1) machine to another and from location to location so long as all machines in commercial use available for play by the public have a sticker and the owner uses the stickers only for machines that the owner owns.
Acts 2002, ch. 856, § 2b.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2206 - Penalties

(a)
A penalty of fifty dollars ($50.00) shall be assessed by the commissioner for every machine that is available for commercial use and for play by the public without a sticker or that is located in a business where the master license of the owner is not displayed.
(b)
(1)
An owner who knowingly makes a bona fide coin-operated amusement machine available for commercial use and for play by the public without a current master license or without a sticker affixed to the machine commits a Class A misdemeanor.
(2)
A business owner or business operator who knowingly permits bona fide coin-operated amusement machines to be operated by the public on the business' premises without display of a copy of the owner's master license or without a sticker affixed to each machine commits a Class A misdemeanor.
(c)
Intentional removal of a machine tax sticker from a bona fide coin-operated amusement machine by the owner, except as permitted in §
67-4-2205(b)
, or by a person other than the owner is a Class C misdemeanor.
(d)
Any bona fide coin-operated amusement machine available for commercial use and play by the public in a location that does not have a copy of the owner's master license displayed or any bona fide coin-operated amusement machine available for commercial use and play by the public without a valid sticker affixed is subject to confiscation as contraband. Prior to confiscation, the owner shall have thirty (30) days in which to remedy any noncompliance with this part, including payment of any penalties.
Acts 2002, ch. 856, § 2b.
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 22 - COIN-OPERATED AMUSEMENT MACHINE TAX ACT (§§ 67-4-2201 — 67-4-2207) › Section 67-4-2207 - Construction

Nothing in this part, including payment of the taxes or fees provided for in this part, shall be construed to make legal an otherwise illegal device, or to authorize or permit gambling on any device whatsoever.
Acts 2002, ch. 856, § 2b.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2601 - Part definitions

As used in this part:
(1)
"Brand family" means all styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including, but not limited to, "menthol," "lights," "kings," and "100s," and includes any brand name, alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product identification identical or similar to, or identifiable with, a previously known brand of cigarettes;
(2)
"Cigarette" has the same meaning as in §
47-31-102
;
(3)
"Cigarette rolling machine operator" has the same meaning as in §
67-4-1001
;
(4)
"Commissioner" means the commissioner of revenue;
(5)
"Delivery sale" has the same meaning as in §
67-4-1001
;
(6)
"Importer" means any person in the United States to whom cigarettes manufactured in a foreign country are shipped or consigned or any person who removes cigarettes for sale or consumption in the United States from a customs bonded warehouse;
(7)
"Licensed agent" means a person who is authorized to affix tax stamps to packages or other containers of cigarettes under §
67-4-1006
or any person who is required to pay the tobacco tax imposed pursuant to §
67-4-1002
;
(8)
"Master settlement agreement" has the same meaning as in §
47-31-102
;
(9)
"Nonparticipating manufacturer" means any tobacco product manufacturer that is not a participating manufacturer;
(10)
"Participating manufacturer" has the meaning given that term in Section II(jj) of the master settlement agreement and all amendments thereto;
(11)
"Qualified escrow fund" has the same meaning as that term is defined in §
47-31-102
;
(12)
"Retail dealer" has the same meaning as in §
67-4-1001
;
(13)
"Tobacco distributor" has the same meaning as in §
67-4-1001
;
(14)
"Tobacco product manufacturer" has the same meaning as that term is defined in §
47-31-102
;
(15)
"Units sold" has the same meaning as that term is defined in §
47-31-102
; and
(16)
"Wholesale dealer and jobber" has the same meaning as in §
67-4-1001
.
Amended by 2014 Tenn. Acts, ch. 749, s 7, eff. 4/22/2014.
Acts 2003 , ch. 294, § 2.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2603 - Registered agent necessary for listing of nonresident or nonparticipating manufacturer

(a)
Any nonresident or foreign nonparticipating manufacturer that has not registered to do business in the state as a foreign corporation or business entity shall, as a condition precedent to having its brand families included or retained in the directory, appoint and continually engage without interruption the services of an agent in this state to act as an agent for the service of process on whom all process, and any action or proceeding against it concerning or arising out of the enforcement of this part and title 47, chapter 31, may be served in any manner authorized by law. Such service shall constitute legal and valid service of process on the nonparticipating manufacturer. The nonparticipating manufacturer shall provide the name, address, phone number and proof of the appointment and availability of such agent to and to the satisfaction of the commissioner and attorney general and reporter.
(b)
The nonparticipating manufacturer shall provide notice to the commissioner and attorney general and reporter thirty (30) calendar days prior to termination of the authority of an agent and shall further provide proof to the satisfaction of the attorney general and reporter of the appointment of a new agent no less than five (5) calendar days prior to the termination of an existing agent appointment. In the event an agent terminates an agency appointment, the nonparticipating manufacturer shall notify the commissioner and attorney general and reporter of said termination within five (5) calendar days and shall include proof to the satisfaction of the attorney general and reporter of the appointment of a new agent.
(c)
Any nonparticipating manufacturer whose cigarettes are sold in this state, who has not appointed and engaged an agent as required in this section, shall be deemed to have appointed the secretary of state as such agent and may be proceeded against in courts of this state by service of process upon the secretary of state; provided, however, that the appointment of the secretary of state as such agent shall not satisfy the condition precedent for having the brand families of the nonparticipating manufacturer included or retained in the directory.
Acts 2003 , ch. 294, § 4.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2605 - Additional penalties

(a)
In addition to or in lieu of any other civil or criminal remedy provided by law, if the commissioner has reasonable grounds to believe that a licensed agent or any other person has violated §
67-4-2602(c)
or any regulation adopted pursuant to this part, the commissioner may revoke or suspend the license of the licensed agent in the manner provided by §
67-4-1016
and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Each stamp affixed and each sale or offer to sell cigarettes in violation of §
67-4-2602(c)
shall constitute a separate violation. For each violation of this part, the commissioner may also impose a civil penalty in an amount not to exceed the greater of five hundred percent (500%) of the retail value of the cigarettes or five thousand dollars ($5,000), if the commissioner has reasonable grounds to believe that a violation of §
67-4-2602(c)
or any regulations adopted pursuant thereto has occurred. Such penalty shall be imposed in the manner provided by §
67-4-1015
and in accordance with the Uniform Administrative Procedures Act. In the event of a conflict between §
67-4-1015
or §
67-4-1016
and the Uniform Administrative Procedures Act, the Uniform Administrative Procedures Act shall govern.
(b)
Any cigarettes that have been sold, offered for sale, or possessed for sale, in this state, or imported for personal consumption in this state, in violation of §
67-4-2602(c)
shall be deemed contraband under §
67-4-1020
and such cigarettes shall be subject to seizure and forfeiture as provided in such section, and all such cigarettes so seized and forfeited shall be destroyed and not resold.
(c)
The attorney general and reporter, on behalf of the commissioner, may seek an injunction to restrain a threatened or actual violation of §
67-4-2602(c)
or §
67-4-2604(a) or (d)
by a licensed agent and to compel the licensed agent to comply with such subsections. In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, costs of the action and reasonable attorney fees.
(d)
It shall be unlawful for a person to:
(1)
Sell or distribute cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of §
67-4-2602(c)
, or
(2)
Acquire, hold, own, possess, transport, import, or cause to be imported cigarettes, that the person knows or should know are intended for distribution or sale in the state in violation of §
67-4-2602(c)
.
(e)
A violation of this section shall be a Class B misdemeanor.
Acts 2003, ch. 294, § 6.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2607 - Admissibility into evidence of licensed cigarette distributor reports filed with the department of revenue

Notwithstanding any other law or rule of evidence to the contrary, a copy of a licensed distributor report filed with the commissioner pursuant to §
67-4-2604(a)
shall be admitted into evidence for the purpose of proving the total number of cigarettes by brand family, or, in case of roll your own, the equivalent stick count, for which the licensed agent affixed Tennessee tax stamps during the previous calendar month or otherwise paid the tax due for cigarettes, as a nonhearsay document in all judicial and administrative proceedings.
Acts 2011 , ch. 264, § 1.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2609 - Authority to execute search warrants for purposes of enforcing part

Any duly authorized representative, agent or employee of the department who has been designated by the commissioner to enforce this part is authorized and empowered to execute search warrants and do all acts incident to the search warrant, in the same manner as search warrants may be levied by sheriffs and other peace officers.
Added by 2014 Tenn. Acts, ch. 749,s 9, eff. 4/22/2014.
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 26 - TOBACCO SETTLEMENT FUNDS (§§ 67-4-2601 — 67-4-2610) › Section 67-4-2610 - Persons enforcing part have power and authority of police officers - Concurrent authority of highway patrol - Authority to be armed

(a)
Inspectors, agents, representatives or officers appointed by the commissioner shall be cloaked with and have the duty, power and authority as police officers to enforce this part.
(b)
The highway patrol shall likewise have concurrent authority to assist in the enforcement of this part.
(c)
Any duly authorized representative or employee of the department who has been specifically designated by the commissioner to enforce this part, is authorized and empowered to go armed, or carry a pistol while on active duty engaged in enforcing this part.
(d)
Nothing in this part shall be construed to limit the authority of the department of revenue or the attorney general's office as otherwise provided by law.
Added by 2014 Tenn. Acts, ch. 749,s 9, eff. 4/22/2014.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2801 - Purpose

The purpose of this part is to levy a tax on every merchant of unauthorized substances to generate revenue for state and local law enforcement agencies for use by those agencies to investigate, combat, prevent and reduce drug crimes, and for the general fund. Such tax shall be measured by the quantity of unauthorized substances sold, bartered, traded, or distributed to another for consideration or the quantity of unauthorized substances possessed with intent to sell, barter, trade, or distribute to another for consideration. This is not a criminal statute. It is a civil taxing measure contributing to the general revenue fund and a civil remedial measure designed to mitigate against the enormous costs of law enforcement related to drug control for state and local government. Nothing in this part may in any manner provide immunity from criminal prosecution for a person who possesses an illegal substance.
Acts 2004, ch. 803, § 2; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2803 - Excise tax rates - Methods of measuring quantities

(a)
A tax, as follows, is levied on and payable by any merchant of unauthorized substances:
(1)
Forty cents (40¢) for each gram, or fraction thereof, of harvested marijuana stems and stalks that have been separated from and are not mixed with any other parts of the marijuana plant;
(2)
Three dollars and fifty cents ($3.50) for each gram, or fraction thereof, of marijuana, other than separated stems and stalks taxed under subdivision (a)(1) or plants with foliation taxed under subdivision (a)(3);
(3)
Three hundred fifty dollars ($350) per plant, whether growing or detached from the soil, on each marijuana plant with foliation;
(4)
Fifty dollars ($50.00) for each gram, or fraction thereof, of cocaine;
(5)
Two hundred dollars ($200) for each gram, or fraction thereof, of any other controlled substance, controlled substance analogue or low-street-value drug that is sold by weight;
(6)
Fifty dollars ($50.00) for each ten (10) dosage units, or fraction thereof, of any low-street-value drug that is not sold by weight;
(7)
Two hundred dollars ($200) for each ten (10) dosage units, or fraction thereof, of any other controlled substance or controlled substance analogue that is not sold by weight;
(8)
Thirty-one dollars and seventy cents ($31.70) for each gallon, or fraction thereof, of illicit alcoholic beverages sold by the drink; or
(9)
Twelve dollars and eighty cents ($12.80) for each gallon, or fraction thereof, of illicit alcoholic beverages not sold by the drink.
(b)
A quantity of marijuana or other unauthorized substance is measured by the weight of the substance whether pure, impure or dilute, or by the number of dosage units in the merchant's possession when the substance is not sold by weight. A quantity of an unauthorized substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
(c)
For purposes of this part, a person constructively possesses an unauthorized substance when the person has:
(1)
Knowledge of the unauthorized substance; and
(2)
The ability and intention to exercise control over the unauthorized substance.
Acts 2004, ch. 803, § 4; 2006, ch. 1019, §§ 51, 52; 2010, ch. 962, § 1; 2012, ch. 848, §§ 88, 89.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2804 - Exemptions

(a)
The tax levied in this part does not apply to an unauthorized substance in the possession of a merchant who is authorized by law to possess the substance. This exemption applies only during the time the merchant's possession of the unauthorized substance is authorized by law.
(b)
The tax levied in this part does not apply to the following marijuana:
(1)
Harvested mature marijuana stalks when separated from and not mixed with any other parts of the marijuana plant;
(2)
Fiber or any other product of marijuana stalks described in subdivision (b)(1), except resin extracted from the stalks;
(3)
Marijuana seeds that have been sterilized and are incapable of germination; or
(4)
Roots of the marijuana plant.
Acts 2004, ch. 803, § 5; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2805 - Issuance of stamps to indicate payment of tax - Report of seizure of unauthorized substances

(a)
The commissioner shall issue stamps to affix to unauthorized substances to indicate payment of the tax by the merchant required by this part. A merchant shall report the taxes payable under this part at the time and on the form prescribed by the commissioner. The merchant is not required to give the merchant's name, address, social security number, or any other identifying information on the form. Upon payment of the tax, the commissioner shall issue stamps in an amount equal to the amount of the tax paid. Taxes may be paid and stamps may be issued either by mail or in person.
(b)
Every local law enforcement agency and every state law enforcement agency must report to the department of revenue within forty-eight (48) hours after seizing an unauthorized substance from or making an arrest of a merchant under this part when the appropriate stamps as required by this part have not been affixed to the unauthorized substances. The report shall be in the manner prescribed by the commissioner and shall include the time and place of the arrest or seizure, the amount, location, and kind of substance, the identification of any merchant and such merchant's social security number, and any other information prescribed by the commissioner.
Acts 2004, ch. 803, § 6; 2006, ch. 1019, § 53; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2806 - Payment of tax

(a)
The tax imposed by this part pursuant to §
67-4-2803
, evidenced by a stamp issued by the commissioner and permanently affixed to unauthorized substances pursuant to subsection (b), is payable by a merchant within forty-eight (48) hours after the merchant acquires actual or constructive possession of unauthorized substance on which a stamp has not been affixed, exclusive of Saturdays, Sundays, and legal holidays of this state, in which case the tax is payable on the next working day. If the tax is not paid within forty-eight (48) hours, the tax shall become delinquent and shall accrue penalty and interest pursuant to chapter 1, part 8 of this title.
(b)
Upon payment of the tax and receipt of the tax stamps, the merchant shall permanently affix the appropriate stamps to the unauthorized substance.
(c)
Once the tax due levied pursuant to this part has been paid, no additional tax is due and payable by a merchant in accordance with this part who may subsequently acquire or handle the unauthorized substance on which an appropriate stamp has been affixed.
(d)
If a merchant is found in possession of a substance taxable under this part on which an appropriate stamp has not been affixed, it shall be presumed the merchant has been in possession of such substance for longer than forty-eight (48) hours, exclusive of Saturdays, Sundays, and legal holidays of this state.
Acts 2004, ch. 803, § 7; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2807 - Assessment of tax, penalties and interest - Notice - Collection

Notwithstanding any other law, an assessment against a merchant under this part on which a stamp has not been affixed as required by this part shall be made as provided in this section. The commissioner shall assess the tax, applicable penalty, and interest based on any information brought to the attention of the commissioner, or the commissioner's duly authorized assistants, that a merchant is liable for unpaid tax pursuant to this part. The tax shall be assessed in the same manner as any other tax assessment, except when this part specifies otherwise. The commissioner shall notify the merchant in writing of the amount of the tax, penalty, and interest due. The notice of assessment shall be either mailed to the merchant at the merchant's last known address or served on the merchant in person. If the merchant does not pay the tax, penalty, and interest upon receipt of the notice of assessment, the commissioner shall collect the assessment, including penalty and interest, pursuant to the procedures set forth in chapter 1, parts 14 and 18, of this title. The merchant may seek review of the assessment as provided in chapter 1, part 18, of this title. Section
67-1-1802
is applicable to the tax levied by this part.
Acts 2004, ch. 803, § 8; 2007, ch. 602, § 28; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2808 - Confidentiality - Immunity - Statistics

(a)
Notwithstanding any other law, information obtained as a result of a merchant's efforts to comply with this part is confidential and, unless obtained independently from any acts undertaken by a merchant to comply with the tax levied by this part, such acts, including the taxpayer's maintenance of a suit to determine liability under the tax levied by this part, may not be disclosed by the commissioner or used in a criminal prosecution other than a prosecution for a violation of this part.
(b)
Chapter 1, part 17, of this title, including the criminal penalties specified therein, shall apply to the tax levied under this part, except that no information shall be disclosed pursuant to chapter 1, part 17, of this title unless that information was obtained independently from any acts undertaken by a merchant to comply with the tax levied by this part, such acts including the taxpayer's maintenance of a suit to determine liability under the tax levied by this part.
(c)
This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of merchants or the contents of particular returns or reports.
Acts 2004, ch. 803, § 9; 2007, ch. 602, § 29; 2010, ch. 962, § 1.
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 28 - TAXATION OF UNAUTHORIZED SUBSTANCES (§§ 67-4-2801 — 67-4-2811) › Section 67-4-2809 - Unauthorized substances tax account - Remittance of tax once unencumbered - Application of proceeds of tax

(a)
The commissioner shall credit the proceeds of the tax levied by this part to a special nonreverting account to be called the state unauthorized substances tax account, until the tax proceeds are unencumbered. The commissioner shall remit the unencumbered tax proceeds as provided in this section on a quarterly or more frequent basis.
(b)
(1)
Tax proceeds are unencumbered when:
(A)
The tax has been paid and the collection process completed; and
(B)
(i)
The taxpayer has no current right to file a refund claim, and the paid tax is not the subject of any pending lawsuit for the recovery of that tax; or
(ii)
The time for the taxpayer to file suit pursuant to §
67-1-1802(c)
has expired.
(2)
(A)
The commissioner shall first apply the unencumbered tax proceeds to the costs of storing and disposing of the assets seized in payment of the assessment under this part and then to the costs incurred by the commissioner due to implementation and enforcement of this part, which costs shall be added to and become part of the assessment.
(B)
(i)
From the remaining proceeds, the commissioner shall remit seventy-five percent (75%) of the unencumbered tax proceeds that were collected by assessment to the state or local law enforcement agency that conducted the investigation of a merchant that led to the assessment. Such proceeds are to be used by the agency solely for the purpose of investigating, combating, preventing, and reducing drug crimes.
(ii)
If more than one (1) state or local law enforcement agency conducted the investigation, then the commissioner shall determine the equitable share for each agency based on the contribution each agency made to the investigation.
(iii)
The commissioner's determination of the equitable share for each agency shall be final and shall not be subject to review in an administrative or judicial proceeding.
(C)
The commissioner shall credit the remaining unencumbered tax proceeds to the general fund.
(c)
Notwithstanding any other provision of this section, in the event the tax levied by this part is voluntarily paid to the department of revenue, and not as a result of an investigation or arrest by a state or local law enforcement agency, such voluntarily paid tax shall be considered unencumbered upon payment, and the commissioner shall credit the entire tax proceeds to the general fund.
Acts 2004, ch. 803, § 10; 2005, ch. 499, § 18; 2010, ch. 962, § 1.