Overview
Tennessee requires vending operators to obtain a $100 annual vending permit from the Department of Agriculture, register for sales tax with standardized local rates, and comply with retail food store regulations. The state prohibits hemp-derived cannabinoid sales through vending machines and gives priority placement rights to Tennessee Business Enterprises (blind vendors program).
Tennessee has unique features including consolidated sales tax filing for micro markets, priority placement for blind vendors in public buildings, and strict hemp product vending prohibitions effective 2024.
Business Registration
Business registration is required for vending operators in Tennessee.
Registration Agency
Tennessee Secretary of State →
Registration Types
- Corporation/LLC/LP registration via TNCaB system
- Standard business license (gross receipts ≥$100,000)
- Minimal activity license (gross receipts $3,000-$99,999)
Register online through Tennessee Comprehensive Annual Business (TNCaB) system at tnbear.tn.gov. Must file annual reports. Business license required from county or municipal clerk based on gross receipts.
Sales Tax
Tax Application
- General sales tax applies to vending: Yes
- Food tax variation: Reduced
- Local rates possible: Yes
- Resale certificate required: No
- Filing frequency: monthly
Vending machines pay state rate (7% general or reduced food rate) PLUS standardized 2.25% local rate regardless of actual local rates. Report monthly on State and Local Sales and Use Tax Return.
Registration
Forms: State and Local Sales and Use Tax Return
Vending Operator License
Vending operator license is required in Tennessee.
License Name: Vending Permit
Issuing Authority: Tennessee Department of Agriculture
Fee: $100
Renewal: annual
Display Requirements: License copy must be displayed at each location
Machine Registration
Machine registration is not required in Tennessee.
Health Permit & Food Code
Health permits are required for:
- Food vending operations
- Micro markets
- Potentially hazardous foods
Agency: Tennessee Department of Agriculture (retail food) / Tennessee Department of Health (restaurants)
Food Code: Retail Food Store Sanitation Rule 8808-04-09
Inspections: High-risk: twice yearly, Moderate: yearly, Low-risk: every 18 months
Micro Markets
Micro markets are recognized in state code.
Permit required: Yes
Specific Requirements
- May file single consolidated sales tax return for multiple locations
- Single certificate of registration per local jurisdiction
- Subject to Retail Food Store Sanitation Rule 8808-04-09
- Retail Food Store permit required ($50 base annual fee)
Product Restrictions
Restricted Products
- Alcohol: Standard state alcohol control laws apply. Specific vending machine regulations not detailed but likely prohibited through control system.
- Tobacco: Wholesale distributors must obtain licenses. Age restriction 21+ with standard licensing requirements.
- CBD/Hemp: VENDING MACHINE SALES PROHIBITED. Must be face-to-face transactions only at licensed retail locations. Age 21+ only. No online sales or delivery. Separate license required for each location. Transitioning to TABC control January 1, 2026.
- Age Verification: Hemp products 21+ only with face-to-face verification. Tobacco 21+ with ID requirements.
Placement Rules
Schools
Federal Smart Snacks standards apply to all foods/beverages sold during school day. Snacks ≤200 calories, ≤230mg sodium, ≤35% calories from fat, <10% saturated fat, ≤35% sugar by weight. Elementary/middle schools require caffeine-free. 20 fundraiser exemption days per semester allowed.
Public Buildings
Tennessee Business Enterprises (TBE) has priority rights under Randolph-Sheppard Act. Covers all state/county/municipal buildings except airports and schools. Executive Order 69 sets nutritional standards for state building vending.
Private Property
Property owner permission required. Subject to local zoning and business regulations.
ADA & Accessibility
Must follow federal ADAAG standards including minimum 3-foot accessible routes, 5 lbf maximum force for controls, and accessible reach ranges.
Electrical & Fire Code
Must comply with local building and electrical codes.
Local Permits
Tennessee has home rule, meaning local jurisdictions can impose additional requirements.
Typical Local Requirements
- Municipal business license
- Sidewalk encroachment permit
- Health department permits
Example Localities
Nashville
Requires Sidewalk Encroachment Permit with $100 non-refundable application fee. Annual renewal required. Prohibited in downtown entertainment district including Lower Broadway. Green zones allow 4'x6' maximum stands on 12' sidewalks. NDOT personnel authorized to issue citations.
Memphis/Shelby County
Board of Commissioners has legislative authority for ordinances in unincorporated areas. Contact local offices for specific requirements.
Penalties & Enforcement
Common Violations
- Operating without vending permit
- Hemp product vending machine sales
- Smart Snacks violations in schools
- Tax delinquency
- Food safety temperature violations
Penalties
- Tax violations: 5% of unpaid amount per month delinquent
- Smart Snacks: School day restrictions enforced
- Hemp violations: Civil penalties for vending sales
- Food safety: License suspension or revocation
Key Contacts
Frequently Asked Questions
Do I need a specific vending permit in Tennessee?
Yes, Tennessee requires a $100 annual Vending Permit from the Department of Agriculture. This includes a warehouse inspection and you must provide details about your operation, products, and machine locations.
How are vending machines taxed differently in Tennessee?
Vending machines pay the state rate (7% general or reduced food rate) PLUS a standardized 2.25% local rate, regardless of the actual local tax rates in that jurisdiction. This simplifies tax collection across multiple locations.
Can I sell CBD or hemp products through vending machines in Tennessee?
No, hemp-derived cannabinoid sales through vending machines are strictly prohibited. These products must be sold face-to-face at licensed retail locations to customers 21 or older. The TABC will assume oversight starting January 1, 2026.
What are the Smart Snacks requirements for school vending in Tennessee?
All vending in schools during the school day must meet federal Smart Snacks standards: snacks ≤200 calories, ≤230mg sodium, ≤35% calories from fat. Elementary and middle schools require caffeine-free options. Schools get 20 fundraiser exemption days per semester.
Do micro markets have special rules in Tennessee?
Yes, Tennessee specifically accommodates micro markets. Operators can file single consolidated sales tax returns for multiple locations and need only one certificate of registration per local jurisdiction. They require a Retail Food Store permit.
What is Tennessee Business Enterprises and how does it affect vending placement?
TBE operates under the Randolph-Sheppard Act, giving blind vendors priority for vending in state, county, and municipal buildings (except airports and schools). This program operates 120 facilities generating $20+ million annually.
What are the penalties for late tax payments?
Tennessee charges 5% of the unpaid tax amount for each month or partial month that the payment is delinquent. File and pay on time through the TNTAP system to avoid penalties.