(a) All of the taxes on tobacco products collected under this part shall be applied in the following manner:

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Terms Used In Tennessee Code 67-4-1025

  • Agriculture: means :
    (i) The land, buildings and machinery used in the commercial production of farm products and nursery stock. See Tennessee Code 1-3-105
  • Cigarette: includes any cigarette produced by a cigarette rolling machine at a retail establishment. See Tennessee Code 67-4-1001
  • 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
  • Department: means the department of revenue. See Tennessee Code 67-4-1001
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Sales: means all gross receipts of the taxpayer not allocated under this part. See Tennessee Code 67-4-2004
  • State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See Tennessee Code 67-4-2004
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) Four percent (4%) of the amount so collected shall be allowed as the expense for carrying out this part;
(2) The amount of eighty-two thousand five hundred dollars ($82,500) shall be used annually to provide the special sinking fund to pay the principal and interest on the Tennessee rural public school building and repair bonds;
(3) The amount of two hundred twenty-five thousand dollars ($225,000) shall be used annually to provide the special sinking fund for the payment of the principal and interest of the University of Tennessee building bonds; and
(4) The remainder shall be applied to and become a part of the general state school fund created by title 49, chapter 3.
(b) The revenue from the tax on cigarettes shall be used exclusively for public education, grades one through twelve (1-12), subsection (a) to the contrary notwithstanding. All revenue collected under this part shall be distributed to the respective public school systems of the state for use in grades one through twelve (1-12) in accordance with the distribution formula governing public school systems, grades one through twelve (1-12).
(c) The revenues collected from the fee levied in § 67-4-1004(b) shall be allocated to the department for the enforcement and administration of the “Unfair Retailer’s Cigarette Sales Law,” compiled in title 47, chapter 25, part 3.
(d) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the increase in the tax rate from ten (10) mills to three cents (3¢) on each cigarette shall be deposited in the education trust fund created by title 49, chapter 3; provided, that an amount of twenty-one million dollars ($21,000,000) of that cigarette tax revenue shall be allocated to the department of agriculture‘s Tennessee agriculture enhancement program; provided, however, that in the fiscal year beginning July 1, 2009, the amount of sixteen million three hundred thousand dollars ($16,300,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act; and provided, further, that in the fiscal year beginning July 1, 2010, the amount of ten million dollars ($10,000,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act.
(e) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the additional tax rate of one-tenth of one cent (0.1¢) on each cigarette imposed by § 67-4-1004(d) shall be deposited in the trauma system fund created by the Tennessee Trauma Center Funding Law of 2007, compiled in title 68, chapter 59. Those funds shall be distributed as required by title 68, chapter 59.
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