TOB-5 - Minimum Selling Price That May Be Advertised

Generally, retailers may not advertise or sell cigarettes for less than the “basic cost of the cigarettes” plus the minimum markup amount, which is set by the Unfair Cigarette Sales Law. (Please note: the Tennessee General Assembly set the minimum markup at 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.

Reference: Tenn. Code Ann. § 47-25-302.

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