Generally, retailers may not advertise or sell cigarettes for less than the basic cost of the cigarettes plus the minimum mark up amount, which is set by the Unfair Cigarette Sales Law. (Please note: the Tennessee General Assembly recently passed legislation that increases the minimum markup from 8% to 15%).
The basic cost of cigarettes is defined by law as the invoice cost of the cigarettes to the retailer before any discounts are applied, plus any taxes, fees or stamp values that were not included by the manufacturer or wholesaler in the invoice amount.
For more information about how to calculate the minimum selling price, please see important notice 15-03. For more information about the increase to the minimum markup, please see important notice 15-10.