✅ 1. Taxation
10% excise tax on the wholesale cost of all vapor products (open-system) now applies statewide.
$0.07/mL tax on closed-system (pre-filled disposables) took effect the same day.
A monthly filing requirement via Form TOB‑552 ensures accountability among wholesalers.
🆔 2. Age ID Enforcement
Retailers must check a photo ID for any customer who looks under 50—rewinding Tennessee’s previous “under 30” threshold—making July 1 the new marker.
No ID = no sale, no exceptions.
🚨 3. Enforcement Authority & Funding
The Alcoholic Beverage Commission (ABC) now shares enforcement responsibility.
At least two unannounced compliance checks per retailer are mandated each year, with timely follow-ups.
12.5% of all vapor excise tax revenue is earmarked for enforcement operations—funding ABC activities directly.
⚖️ 4. Penalties
Under‑21 sales: first offense incurs a $2,500 fine; second offense triggers at least $20,000 plus license revocation .
Unlisted product sales: first offense up to $500 per product, escalating at second and third violations to license suspension/revocation .
Advertising violations (targeting minors or near schools/churches): 30-day correction window, followed by fines up to $2,500, and $20,000 + licensing loss for repeat offenders.
⏳ What’s Coming Soon — Timeline of Upcoming Restrictions
August 1, 2025
Manufacturers must register products with Dept. of Revenue. Annual $25 fee per SKU. Retailers can only buy from licensed wholesalers.
January 1, 2026
Vapor product directory goes live. Only listed products can be sold—unlisted products face 60-day sell-through, then potentially seizure.
January 1, 2027
Full enforcement: unlisted products are banned from retailing; continued sale is illegal.
📌 Summary
Already in effect:
Dual taxation: 10% wholesale + $0.07/mL disposables
ID required for all purchasers appearing under 50
ABC enforcement with two annual compliance checks and dedicated funding (12.5% of tax revenue)
Heavy penalties for underage sales, unlisted products, and improper advertising
Coming up:
Aug 1, 2025: registration for manufacturers + mandatory sourcing from licensed wholesalers
Jan 1, 2026: directory launches; 60-day phase-out for unlisted product inventory
Jan 1, 2027: unlisted vape products fully prohibited
✅ What This Means for Customers & Shops
Expect higher product prices due to the new tax.
Store staff must vigilantly ID-check any buyers who look under 50.
Manufacturers must be directory compliant or risk banned products.
Shops should track the timeline, clearing unlisted stock before January 2027.
The ABC is on the move—enforcement checks are increasing, and rule-breaking will carry significant fines.
