Vape Vending Regulations in Tennessee

Operating Vape Vending Machines in Tennessee

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Thinking about installing a vape vending machine in Tennessee, specifically in hot spots around Nashville (37203, 37219) or Memphis (38103, 38104)? This comprehensive guide will help you navigate business formation, sales tax registration, and compliance with the Prevention of Youth Access to Tobacco and Electronic Cigarettes Act (Tennessee Code §§ 39-17-1501 – 39-17-1551), especially TCA § 39-17-1507 governing vape vending machine sales.

1. Forming and Registering Your Business

Before placing a vape vending machine in Tennessee, it’s crucial to ensure your business is properly formed and registered with the Tennessee Secretary of State and the Tennessee Department of Revenue. This process is the same for Nashville or Memphis entrepreneurs.

1.1 Determine Your Business Structure

  • Sole Proprietorship: Simplest route, but no personal liability protection.
  • Partnership: Shared ownership among partners (general or limited).
  • LLC (Limited Liability Company): Limits personal liability and offers flexible management.
  • Corporation: Formal structure with strong liability protection.

File the necessary formation documents (e.g., Articles of Organization for an LLC) with the Tennessee Secretary of State.

2. Registering with the Tennessee Department of Revenue

All businesses that sell tangible personal property—including vape or e-cigarette products—must register with the Tennessee Department of Revenue. This typically involves obtaining a Sales and Use Tax Permit and a Business Tax License if your annual gross receipts meet the threshold.

  • Sales & Use Tax Account: Required for collecting and remitting sales tax. Register online via the Tennessee Taxpayer Access Point (TNTAP).
  • Business License: Through your county (e.g., for Nashville or Shelby County for Memphis) if your annual receipts exceed $10,000. A Minimal Activity License may apply if receipts are between $3,000 – $9,999.

Check with local officials to confirm any additional vapor product regulations for your specific city or county.

3. Local Zoning and Permits

Always ensure that local zoning laws and regulations in Nashville or Memphis permit the installation of a vape vending machine at your intended location. For instance, if you plan to place a vending machine inside a bar or restaurant, verify any local licensing or permit requirements related to alcohol service.

4. Tennessee Vending Machine Laws for Vape Products

The core of Tennessee’s regulations for vape vending machines lies in TCA § 39-17-1507, part of the Prevention of Youth Access to Tobacco and Electronic Cigarettes Act (TCA §§ 39-17-1501 – 39-17-1551).

(a)(1) “It is unlawful for any person to offer for sale, sell, or distribute any tobacco product, smoking hemp, vapor product, or smokeless nicotine product by or from a vending machine that is located in an area that is accessible to minors.”

In other words, you cannot place a vape vending machine in an area where individuals under 21 can easily access it. However, (a)(2) offers exceptions for:

  • Non-Public Workplaces – TCA § 39-17-1507(a)(2)(A)
  • Restricted Access Areas – TCA § 39-17-1507(a)(2)(B)
  • On-Premises Alcohol Establishments – TCA § 39-17-1507(a)(2)(C)
  • Other Locations with Controls – TCA § 39-17-1507(a)(2)(D)

4.1 On-Premises Bars in Nashville & Memphis

Many bar owners in Nashville’s famed Lower Broadway area (e.g., Nudie’s Honky Tonk, 409 Broadway, Nashville, TN 37203 or Tootsie’s Orchid Lounge, 422 Broadway, Nashville, TN 37203) and in Memphis near Beale Street (B.B. King’s Blues Club, 143 Beale Street, Memphis, TN 38103 or Silky O’Sullivan’s, 183 Beale Street, Memphis, TN 38103) can install vape vending machines if:

  • The machine is continuously supervised by the owner or an employee.
  • The machine is rendered inoperable or inaccessible to the public when the establishment is closed.

This helps restrict underage access and complies with TCA § 39-17-1507(a)(2)(C).

4.2 Age Verification

Where supervision or a token system is used, the supervising individual must demand proof of age if a purchaser appears to be under 30. Buyers must be 21 or older to purchase vape products in Tennessee.  To learn more about how VapeTM uses age-verification solutions, see our video and Apt-Verify in action here

5. Additional Compliance Measures

  • Signage: Post clear “Under 21 Prohibited” signs on or near the vending machine.
  • Machine Security: Power off or lock the machine when your bar or restaurant closes.
  • Record-Keeping: Track sales and ensure proper collection of Tennessee sales tax.
  • Monitor Changes: Stay updated on any legislative amendments or local ordinances that affect vape vending.

6. Penalties for Non-Compliance

Failure to comply with TCA § 39-17-1507 can result in criminal penalties (fines, potential misdemeanors) and administrative sanctions (loss of licenses). Repeated violations increase these risks significantly.

7. Conclusion

Properly forming your business, registering for sales tax, and following the location restrictions under TCA § 39-17-1507 are crucial steps to installing a vape vending machine in Tennessee. This is especially important in bustling nightlife areas like Nashville’s Broadway and Memphis’s Beale Street where foot traffic is high.

Always consult the official Tennessee Code or an attorney for the most current information and to address any specific local requirements.

Visit our complete guide on Smart Vending for an in-depth look at smart vending solutions and business insights as it relates to age-restricted products like disposable nicotine-based vapes and nicotine pouches.

Disclaimer: This information is provided for informational purposes only and does not constitute legal advice. Always verify regulations in the official Tennessee Code and consult legal counsel as needed.

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