When we interviewed Tennessee Department of Revenue Commission Reagan Farr last week, a caller asked him about the purchase of cigarettes from a military commissary. Yesterday I received a letter from the Commissioner with a full answer and a further clarification.

Farr states:

“I am writing because one of your callers asked a question about the purchase of cigarettes from a military commissary. As a result of this question, we have done additional research and wanted to clarify the department’s position on commissary purchases.

A federal statute, commonly referred to as the Buck Act, prohibits states from taxing items sold at a military commissary to authorized military personnel. Because cigarettes purchased by authorized personnel at commissaries are exempt from taxation, there is no civil or criminal penalty for possession of the authorized purchaser for his or her personal use. The prohibition from state taxation does not cover cigarettes purchased for non-exempt purposes, such as purchases made with the intent of reselling the cigarettes or purchase made for friends or family.”

Thanks to Mr. Farr for sending this information along.