Tennessee to Impose 10% Tax on E-Cigarettes Starting July; Retailers Question Enforcement Clarity

Jul.09.2025
Tennessee to Impose 10% Tax on E-Cigarettes Starting July; Retailers Question Enforcement Clarity
A new law in Tennessee aimed at curbing youth vaping took effect in July, imposing a 10% excise tax and requiring e-cigarette products to be registered with the state. However, industry insiders say enforcement has been chaotic and regulations unclear, leaving small and mid-sized retailers confused.

【2Firsts News Flash】According to NewsChannel9, a new law that went into effect this month in Tennessee imposes more restrictions and taxes on the sale of e-cigarettes and vaping products. State lawmakers say the new law is designed to reduce opportunities for youth to access e-cigarette products. However, some industry professionals in the e-cigarette sector have expressed confusion over the law.

 

Under the new regulations, certain e-cigarette products will be subject to a new 10% tax rate. The law also establishes a deadline of August 1st for implementing additional enforcement and tracking measures. Retailers will be required to only sell e-cigarette products that are on an approved list by the state government.

 

There are still questions as to when and where businesses can access this list.

 

The president of the Tennessee Smoke Free Association, Daniel Gillis, stated, "This law has not addressed the problem of youth vaping e-cigarettes at all, it is just disguised as a 'youth e-cigarette prevention act'.

 

Gillis stated that the law will be implemented in three stages: the first stage involves a 10% tax starting this month, the second stage involves product registration beginning in 2026, and the third stage involves full enforcement starting in 2027.

 

"They are imposing taxes on a product that they themselves do not understand."

 

Although shop owners have been asked to adhere to the new regulations, Gilles said that many people do not truly understand the content of the rules, and the guidance provided by the state government is also very limited.

 

"Many stores, especially those not affiliated with the Tennessee Smoke Free Association, are now in the dark about what exactly this bill entails."

 

The bill's sponsor, State Representative David Hawk, stated:

 

"Starting from July 1st, the Tennessee Alcoholic Beverage Commission will be responsible for overseeing e-cigarette shops to ensure compliance with the new laws. Additionally, the Tennessee Department of Revenue will ultimately be in charge of creating a register of e-cigarette products. Therefore, these two state agencies are the primary enforcement bodies."

 

However, Gillis pointed out that the biggest issue in law enforcement lies in the cross-border circulation of products and the fact that some suppliers still do not have licenses.

 

"I believe law enforcement will be a major issue, and the market competition during the period before distributors obtain sales permits will be extremely unfair. I think we should establish an e-cigarette sales permit system first, clarify who is selling, and then control distribution."

 

Currently, e-cigarette stores must ensure that their suppliers have obtained licenses and that the products they sell can be included in the state government's registry in the future.

 

Gillis stated that he will continue to work with the state government to seek clearer guidance, but also warned that this confusion and delay could harm small businesses rather than improve public health.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
Jinhua Tobacco, a municipal tobacco company in China’s Zhejiang province, has launched a public tender for e-cigarette-related violation lead monitoring and consulting services. The project is valued at CNY 2.7 million and covers data resource integration and analytical consulting services for 36 months from contract signing. The procurement reflects the use of external data and analysis services to support local tobacco companies’ market oversight activities related to e-cigarettes.
Aug.07
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
An Indian investigation found that duty-free shops at Mumbai international airport operated by billionaire Gautam Adani’s business group sold nicotine pouches in breach of the law, Reuters reported, in a case that could shape how India regulates sales of new nicotine products at airport retail outlets.
Jul.08
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
UK Proposes Stricter Vape Packaging Rules as Retailers Warn of £330 Million Impact
UK Proposes Stricter Vape Packaging Rules as Retailers Warn of £330 Million Impact
The UK government has launched a nationwide consultation on vape packaging, appearance and retail displays, proposing tighter rules to reduce youth appeal while industry groups warn of significant compliance costs.
Innovation
Jul.20
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
The UK government has announced that HM Revenue & Customs (HMRC) will carry out more than 30,000 interventions targeting businesses and retail premises during the 2026-2027 financial year. The actions will focus on tax fraud, illegal goods sales and businesses involved in unlawful activities through retail channels. The government said illegal tobacco and illegal vape sales remain areas of concern. The move shows that UK enforcement against illegal nicotine products is expanding from import and supply channels toward retail-level oversight, alongside the upcoming introduction of the Vaping Products Duty.
Jul.24
Germany Expands Take-Back Rules for Disposable Vapes From July 1
Germany Expands Take-Back Rules for Disposable Vapes From July 1
Germany has expanded take-back obligations for disposable vapes from July 1, 2026, requiring consumers to be able to return used devices at stores that sell such products, including kiosks, petrol stations and vape shops, as e-cigarette regulation extends from sales to waste management and lithium-battery safety.
Market
Jul.06 by 2Firsts Perspectives