Considering becoming a vape vending machine host in Tennessee? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Tennessee.

Placement Restrictions

Tennessee Code Annotated § 39-17-1507 stipulates:

"It is unlawful for any person to sell tobacco, smoking hemp, vapor products, or smokeless nicotine product through a vending machine unless the vending machine is located in any of the following locations:

(1) In areas of factories, businesses, offices, or other places that are not open to the public;

(2) In places that are open to the public but to which persons under twenty-one (21) years of age are denied access;

(3) In places where alcoholic beverages are sold for consumption on the premises, but only if the vending machine is under the continuous supervision of the owner or lessee of the premises or an employee of the owner or lessee of the premises, and is inaccessible to the public when the establishment is closed; and

(4) In other places, but only if the machine is under the continuous supervision of the owner or lessee of the premises or an employee of the owner or lessee of the premises, or the machine can be operated only by the use of a token purchased from the owner or lessee of the premises or an employee of the owner or lessee of the premises prior to each purchase, and is inaccessible to the public when the establishment is closed."

Licensing and Permitting Requirements

A. Vending Machine Operator Licensing

Per Tennessee Code Annotated § 53-12-104:

"(a) Each owner or operator of one (1) or more vending machines and commissary operator shall file an annual application with the commissioner stating the following on forms provided by the commissioner:

(1) The operator's full name, and the address of the operator's headquarters or principal places of business in the state;

(2) The names and addresses of the partners, if a partnership exists;

(3) The location of the commissary or commissaries and of other warehouses and places where foods, supplies and vending machines are stored or machines are repaired or renovated;

(4) The identity and form of the products to be dispensed and the number of vending machines, by general product type, in the operator's possession; and

(5) The signature of the operator or operators.

(b) If the commissioner finds from the application and from inspections that the applicant meets the requirements of this chapter and regulations, the commissioner shall issue an operator's license. The applicant shall pay a license fee of one hundred dollars ($100) for each license renewable on August 1 of each year. The license number issued by the commissioner and the operator's name and address shall be readily visible on each vending machine or integrated bank of vending machines."

B. Tobacco and Vapor Product Licensing

According to the Tennessee Department of Revenue:

"If you sell, distribute, or handle cigarettes or other tobacco products at the wholesale level (i.e., not as a retailer selling to the consumer), regardless of whether you are subject to the tobacco tax or not, you must obtain a license to do so in Tennessee. You can apply for a license using the Tennessee Taxpayer Access Point (TNTAP) application."

Taxes and Fees

A. Excise Tax

Effective July 1, 2025, as per the Tennessee Department of Revenue:

"Vapor products are subject to the tobacco tax at the rate of 10% of the wholesale cost price. Persons making wholesale sales of vapor products in Tennessee must report these sales and remit the tax due by filing a monthly Tennessee Tobacco Products Return (Form TOB 552)."

B. Sales Tax

All sales of vape and nicotine products through vending machines are subject to Tennessee state sales tax (currently 7%, plus applicable local rates). Registration for a Sales and Use Tax Account is required via the Tennessee Department of Revenue portal.

Regulatory Agencies

• Tennessee Department of Revenue: Oversees licensing, excise tax, and sales tax related to tobacco and vapor products.
• Tennessee Department of Agriculture: Enforces regulations concerning vending machine operations and food safety.

Municipal or Local Ordinances

Tennessee law includes preemption language in Tennessee Code Annotated § 39-17-1551, which prohibits local governments from enacting regulations on the sale of tobacco or vapor products that are more stringent than state law.

Additional Compliance Considerations

• Signage: Retail locations must display signage stating that the sale of tobacco and vapor products to persons under 21 is prohibited, as outlined in Tennessee Code Annotated § 39-17-1506.
• Product Registration: Beginning August 1, 2025, manufacturers of vapor products sold for retail sale in Tennessee must register each product with the Department of Revenue for inclusion in the state's vapor product directory.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Tennessee government resources for the most current regulations.