Vape Vending Machines Sales Laws and Regulations in Vermont

Thinking of Launching a Vape Vending Machine in Vermont?
Here’s What You Need to Know First

Considering becoming a vape vending machine host in Vermont? 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.VapeTMWhether 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 Vermont.

1. Business & Vending Machine Licensing

A. Tennessee Food Vending Machine Operator License

Required if vending any ingestible/nicotine-containing products.

  • Statute: Tenn. Code Ann. § 53-12-104(a–b)
  • Fee: $100 annually
  • Renewal: Due August 1 each year
  • Labeling: Each vending machine must display:

“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.”
Tenn. Code Ann. § 53-12-104(b)
View statute on Justia

2. Placement Restrictions

A. Vending Machine Location Rules

Statute: Tenn. Code Ann. § 39-17-1507

A vending machine selling vapor products, smoking hemp, smokeless nicotine must be in:

  1. Employee-only areas not accessible to the public
  2. 21+ restricted venues (e.g., bars)
  3. Supervised establishments (e.g., machines monitored by an employee)
  4. Token-only machines (token must be issued by staff before each use)

All must be inaccessible when the business is closed.

“It is unlawful for any person to sell… through a vending machine unless the vending machine is located in… places where persons under twenty-one (21) are denied access…”
Tenn. Code Ann. § 39-17-1507
Full Text

3. Taxes

A. Excise Tax on Vapor Products

Statute: Tenn. Code Ann. § 67-4-2601 et seq.

  • Rate: 6.6% of wholesale cost for vapor products
  • Return Form: TOB552
  • Filing: Monthly

B. Sales & Use Tax

  • Rate: 7% state + local option (usually 2.25%)
  • Registration: Required via TNTAP

4. Regulatory Bodies

Area Department
Vending Licenses TN Department of Agriculture –
Consumer & Industry Services
Tobacco & Vape Tax TN Department of Revenue
Sales Tax TN Department of Revenue
Age Verification & Enforcement TN Dept. of Health &
Law Enforcement

5. Required Disclosures & Signage

Per Tenn. Code Ann. § 39-17-1506:

“Each retailer… shall post a sign at the point of sale… stating:
'State law prohibits the sale of tobacco or vapor products to persons under 21 years of age.'”

For vending machines: This sign must be clearly visible, and age-gating mechanisms must be used (employee-controlled or restricted-entry).

6. Product Packaging Requirements

While not always enforced at the state level, federal law still governs:

  • Must be child-resistant: 16 CFR § 1700.15
  • Must include a nicotine warning label: 21 CFR § 1143.3

7. Preemption – Local Laws Prohibited

Tenn. Code Ann. § 39-17-1551:

“Local governments shall not regulate the use, distribution, promotion, or sale of tobacco or vapor products.”

Therefore, no city or county can impose stricter vending restrictions.

8. How to Comply – Step-by-Step

Step Action
1 Register your business with TN Secretary of State
2 Register for Sales & Use Tax via TNTAP
3 Apply for Tobacco License
(if wholesaling/distributing vapor)
4 File for Food Vending Machine Operator License
under § 53-12-104
5 Label each vending machine with name,
address, and license number
6 Install age restriction mechanism
and required signage
7 Remit excise and sales tax monthly

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

 

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