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 67-4-1015 - Licenses - Penalties for unlicensed operation

(a)
Before engaging in the business of selling, distributing or handling tobacco products in this state, every person required to be licensed by this part shall obtain a license authorizing the person to engage in that business prior to the commencement of business. All persons currently engaged in the business of selling, distributing, or handling tobacco products in this state, and required to be licensed by this part, shall apply for a renewal of the license on or before May 31 of each year.
(b)
The application for license shall be made on blanks furnished by the commissioner. The application blanks shall show the following:
(1)
Name of applicant;
(2)
Street address and telephone number of applicant;
(3)
City or town in which the applicant's place of business is to be located;
(4)
Kind or nature of business to be conducted;
(5)
Sufficient information to demonstrate that the applicant has complied with all pertinent registration and tax statutes, as provided by law, including, but not limited to, the sales and use, business, franchise and excise taxes. The form and content of the information required by this subdivision (b)(5) shall be specified by the commissioner;
(6)
Such other and further information as the commissioner may require;
(7)
Name, address and telephone number of the resident agent, as defined by §
67-4-1001
; and
(8)
Name, address and telephone number of a registered agent.
(c)
(1)
Application for licenses shall be accompanied by the following fees:
(A)
Manufacturing distributor-Two hundred dollars ($200) for each plant or processing location;
(B)
Tobacco manufacturer's warehouse-Two hundred dollars ($200) for each storage warehouse;
(C)
Wholesale dealer and jobber-Two hundred dollars ($200) for each separate sale warehouse;
(D)
Tobacco distributor-One hundred dollars ($100) for each secondary wholesale location where tobacco products are received or ordered for delivery to other than the ultimate consumer; and
(E)
Cigarette rolling machine operator - Five hundred dollars ($500) for each cigarette rolling machine purchased or leased for use, or controlled, possessed or maintained by the cigarette machine operator.
(2)
(A)
Upon receipt of the application referenced in subsection (b), together with the fee imposed by this subsection (c), the commissioner, upon the commissioner's approval of the application, shall issue within a reasonable time to the applicant the necessary licenses to engage in the business named in the application.
(B)
The licenses shall expire on May 31 of each year.
(C)
If the license is mutilated, lost, or destroyed, a duplicate will be issued upon application, accompanied by a fee of twenty-five dollars ($25.00).
(D)
Applications for renewal of a license may be denied for failure of the licensee to pay the tax or taxes imposed by this part or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner.
(d)
Any person who engages in any business or activity for which a license is required under this part without obtaining a license to do so, or who fails to file an application for renewal of a license before expiration of the current license, is subject to a specific penalty in the amount of the license fee for each month or part of a month during which the activity or failure continues. In addition to this specific penalty, the commissioner may impose a penalty of no more than two hundred fifty dollars ($250) a day for each day during which the activity or failure occurs or continues. This discretionary penalty may also be imposed upon a person to whom a license has been issued, if the person continues to engage in the business or activity after receiving notice the license is revoked or suspended by the commissioner.
(e)
Persons duly and properly licensed to sell tobacco products in this state may not knowingly sell, lend, or exchange such products to, with or from any person required to be licensed who is not so licensed, or who is improperly licensed.
(f)
(1)
Except as provided in subdivision (f)(2), the commissioner shall require all applicants for license, as required by subsections (a) and (b), including, but not limited to, persons licensed to engage in the business of a tobacco manufacturer's warehouse as defined by this part, to execute a bond with a surety company qualified to do business in this state as surety on the bond, payable to the state of Tennessee and conditioned upon the licensee paying the tax and affixing tax stamps to all packages or parcels of tobacco products used, sold, distributed or handled by such licensee and/or accounting for the distribution of such foreign stamped or other unstamped products authorized to be possessed under this part.
(2)
In lieu of a corporate surety on the bond required by this subsection (f), the commissioner may allow the wholesale dealer and jobber to secure such bond by depositing collateral in the form of a certificate of deposit as accepted and authorized by the banking laws of this state that has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner. Interest on any deposited certificate of deposit shall be payable to such wholesaler and jobber who has deposited it as collateral, or to such person as the wholesaler and jobber or the certificate may direct.
(g)
No license so issued shall be transferable and a separate license shall be required for each separate place of business and shall be prominently displayed in the place of business operated by the person to whom such license is issued.
(h)
Nonresidents selling and/or delivering tobacco products in Tennessee shall be privileged to obtain licenses, purchase and affix tobacco stamps, pay tax, obtain statutory discounts and perform all other acts relating to selling and/or delivering tobacco products in a like manner and under the same conditions as Tennessee resident licensees; provided, that similar privileges are afforded to residents of this state in the applicant's state of domicile.
(i)
Every person making application for license pursuant to this section shall designate, in writing, on forms provided by the commissioner, a resident agent. The resident agent shall be the dealer's agent for any of the acts authorized pursuant to §
67-4-1006
. The designated resident agent shall be required, whether or not the dealer maintains a warehouse or other place of business in this state.
(j)
All information provided by licensees pursuant to subsection (b) shall remain current. Licensees shall notify the commissioner, in writing, within ten (10) days of any change in the information.
Acts 1937, ch. 133, § 2; 1939, ch. 201, § 1; 1941, ch. 78, § 1; C. Supp. 1950, § 1233.3 (Williams, § 1213.2); Acts 1965, ch. 118, § 6; 1968, ch. 623, § 4; 1971, ch. 91, § 1; 1972, ch. 457, § 4; 1973, ch. 236, §§ 2, 3; 1976, ch. 440, § 3; 1977, ch. 352, § 3; T.C.A. (orig. ed.), §§ 67-3113 -- 67-3116; Acts 1984, ch. 536, § 2; 1985, ch. 314, § 1; 1988, ch. 676, § 1; 2008 , ch. 1090, §§ 1-9; 2012, ch. 1066, § 6.