(a) For the purpose of compensating the dealer or distributor of tobacco products other than cigarettes in accounting for and remitting the tax and for the risk of loss and other expenses involved, the dealer shall be allowed two percent (2%) of the tax as the dealer’s compensation, if the tax is not delinquent or deficient when paid.
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Terms Used In Tennessee Code 67-4-1009

  • cigarettes: means and includes all rolled, shredded, or cut tobacco, or any substitute therefor, wrapped in paper, or substitute therefor, and all rolled, shredded or cut tobacco, or any substitute therefor, wrapped in homogenized tobacco wrapper, and being within customary cigarette sizes and marketed in cigarette type packages. See Tennessee Code 67-4-1001
  • Commissioner: means the commissioner of revenue. See Tennessee Code 67-4-1001
  • Compensation: means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. See Tennessee Code 67-4-2004
  • Manufacturing distributor: means any person, with a plant located in this state, engaged in the business of manufacturing or processing consumable tobacco products, taxed by this part. See Tennessee Code 67-4-1001
  • Wholesale dealer and jobber: means any person who maintains wholesale facilities in one (1) or more permanent locations, and engages in the business of receiving, storing, purchasing, selling at wholesale only, importing unstamped tobacco products, and otherwise handling tobacco products for resale at a wholesale price only to other licensed wholesale dealers and jobbers, or tobacco distributors or retail dealers as defined in this section, but does not sell tobacco products directly to the ultimate consumer. See Tennessee Code 67-4-1001
(b) The commissioner is empowered to allow any manufacturing distributor or wholesale dealer and jobber, as defined in this part, a discount of an amount not to exceed four and fifteen hundredths percent (4.15%) of the value of the stamps as compensation for selling and affixing the stamps to tobacco products.
(c) The compensation and/or discount provided for in subsections (a) and (b) shall not apply to the fee imposed by § 67-4-1004(b).
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