Rule 560-8-1-.01. Definitions - General

As used in these rules:

1. (a) "Alternative nicotine product" means any material that contains nicotine, but does not contain tobacco leaf, and is intended for human consumption, whether such material is chewed, absorbed, dissolved, or ingested by any other means. Such term shall include, but shall not be limited to, nicotine gel, pouches, or gum or dissolvable nicotine strips, sticks, lozenges, or pellets. Such term shall not include little cigars, cigars, cigarettes, loose tobacco or smokeless tobacco, consumable vapor products, or any product regulated as a drug or therapeutic device by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act.
2. (b) "Carrier" means any person whose business is to transport goods or people while acting in the capacity as common, private or contract transporter of a product or service using its facilities or those of other carriers.
3. (c) "Cigar" means any roll for smoking made wholly or in part of tobacco when the cover of the roll is also tobacco.
4. (d) "Cigarette" means any roll for smoking made wholly or in part of tobacco when the cover of the roll is paper or any substance other than tobacco.
5. (e) "Closed system" means any disposable container which is prefilled and sealed by the manufacturer, not easily refillable nor intended or designed to be refillable, and intended or used to dispense consumable vapor products by way of a vapor device that is intended or designed to be reused.
6. (f) "Code" means the Official Code of Georgia Annotated.
7. (g) "Commissioner" means the State Revenue Commissioner or the Commissioner's designated representative.
8. (h) "Consumable vapor product" means any liquid solution, whether it contains nicotine or not, that is intended to be heated into an aerosol state and inhaled by an individual. Such term shall include, but shall not be limited to, e-liquid, e-juice, vape juice, and cartridges that are prefilled with such a solution. Such term shall not include any alternative nicotine product, cigar, cigarette, loose tobacco or smokeless tobacco, perfume, potpourri, essential oil, or product regulated as a drug or therapeutic device by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act.

9. (i) "Consumer promotions" means:

   1. 1. A manufacturer's promotion of cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products that:

      1. (i) Is only for use by the consumer;
      2. (ii) Is designed and intended to induce the consumer to purchase a specified cigar, loose tobacco or smokeless tobacco product, vapor product, or alternative nicotine product; and
      3. (iii) Features cigars, loose tobacco or smokeless tobacco product, vapor product, or alternative nicotine product packaged with distinct promotional labeling from the manufacturer.
   2. 2. The promotional component of consumer promotions for cigars, little cigars, loose tobacco or smokeless tobacco, vapor product, or alternative nicotine product is not subject to state excise tax.
10. (j) "Counterfeit cigarette" means cigarettes that are manufactured, fabricated, assembled, processed, packaged, or labeled by any person other than the trademark owner of a cigarette brand or the owner's designated agent.
11. (k) "Counterfeit vapor product" means vapor products that are manufactured, fabricated, assembled, processed, packaged, or labeled by any person other than the trademark owner of a vapor product brand or the owner's designated agent.
12. (l) "Dealer" means any person located within the borders of this state that sells or distributes cigarettes, cigars, little cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products to a consumer in this state.
13. (m) "Department" means the Georgia Department of Revenue.

14. (n) "Distributor" means any person, other than a dealer, importer, or manufacturer:

    1. 1. Who sells or distributes any or all of the following tobacco products in this state:

       1. (i) cigarettes;
       2. (ii) cigars, little cigars;
       3. (iii) loose tobacco or smokeless tobacco;
       4. (iv) vapor products; or
       5. (v) alternative nicotine products.
    2. 2. Who maintains a warehouse, warehouse personnel, and salespeople who regularly contact and call on dealers.
    3. 3. Who is engaged in the business of importing cigarettes, cigars, little cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products into this state or who purchases cigarettes, cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products from other manufacturers or distributors.

    4. 4. Who sells cigarettes, cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products to dealers for resale in this state but is not in the business of selling cigarettes, cigars, little cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products directly to the ultimate consumer.

       Such term shall not include any cigarette manufacturer, export warehouse proprietor, or cigarette importer with a valid permit under 26 U.S.C. Section 5712 if such person sells or distributes cigarettes in this state to cigarette distributors who hold valid and current licenses under Code Section 48-11-4 or include any export warehouse proprietor or another cigarette manufacturer with a valid permit under 26 U.S.C. Section 5712.

15. (o) "Distributor promotions" means any of the following:

    1. 1. Manufacturer's promotions for cigars, little cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products that are

       1. (i) Only for use by a distributor who is licensed by this State; and
       2. (ii) Intended to induce a distributor to purchase a specific product or products for resale to the retailer.

    2. 2. Distributor promotions for cigars, little cigars, loose tobacco or smokeless tobacco, vapor products, or alternative nicotine products are:

       1. (i) Monetary discounts offered directly to a distributor for the purchase of such products;
       2. (ii) Free product offered to a distributor to induce it to purchase a specific product item of such products; or

       3. (iii) Monetary discounts to pay within a certain time or purchase a large quantity of such products.

          All such discounts and allowances are included in the computation of the wholesale cost price and subject to state excise tax.

16. (p) "Export cigarettes" means any finished cigarette packaged and marked for export and not for consumption in the United States. Export cigarettes may also be referred to as Gray cigarettes
17. (q) "First taxable transaction" means the first sale, receipt, purchase, possession, consumption, handling, distribution, or use of cigars, little cigars, cigarettes, loose tobacco or smokeless tobacco, or vapor products within this state.
18. (r) "Importer" means any person who imports into this state from a foreign country, or who brokers in the United States, either directly or indirectly, for sale or distribution any of the following products in finished form: tobacco products, vapor products, or alternative nicotine products.
19. (s) "Individual" means a natural person.
20. (t) "Licensee" means any person who has been granted a license or permit by the Department concerning the manufacturing, importing, wholesaling, shipping, distribution, or sale of tobacco products, vapor products, or alternative nicotine products or who deals in such products.
21. (u) "Little cigars" means cigars not weighing more than three pounds per thousand.
22. (v) "Loose tobacco or smokeless tobacco" means granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweepings of tobacco; and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, but does not include cigarettes or cigars, little cigars, or tobacco purchased for the manufacture of cigarettes, cigars, or little cigars by cigarette manufacturers or cigar manufacturers.
23. (w) "Manufacturer" means any person who manufactures, fabricates, assembles, processes, or labels any of the following products in finished form: tobacco products, vapor products, or alternative nicotine products.
24. (x) "Open system" means any method or manner used to contain a consumable vapor product that is not a closed system.
25. (y) "Package" means a pack, carton, or container of any kind in which tobacco products, vapor products, or alternative nicotine products are offered for sale, sold, otherwise distributed, or intended for distribution to consumers.
26. (z) "Person" means any individual, firm, partnership, cooperative, nonprofit membership corporation, joint venture, association, company, corporation, agency, syndicate, estate, trust, business trust, receiver, fiduciary, or other group or combination acting as a unit, body politic, or political subdivision whether public, private, or quasi-public.
27. (aa) "Place of business" means the premises of a licensed manufacturer, importer, wholesaler or dealer described in the license application.
28. (bb) "Premises" means one physically identifiable business location operated by the same ownership and overall management with only one address registered as a single place of business with the local licensing authority and the state.
29. (cc) "Promotional activities" means any activity other than those set forth in the definitions for "consumer promotions" and "distributor promotions" directed to the consumer by the manufacturer or importer, including solicitation of orders, demonstration and sampling, arranging of displays, distribution of literature, posting of advertising, exchange of fresh stock, and similar activities for promoting the sale or use of tobacco products, vapor products, or alternative nicotine products.
30. (dd) "Regulations" means regulations promulgated by the Commissioner pursuant to the Code.
31. (ee) "Related machinery" means any item, device, conveyance, or vessel of any kind or character used in manufacturing, packaging, labeling, stamping, transporting, distributing, selling, or possessing counterfeit cigarettes.
32. (ff) "Representative" means a person, employee, agent, independent contractor, or salesperson acting on behalf of or at the direction of the licensee, with or without compensation, representing the licensee to a third party.
33. (gg) "Sale" means any sale, transfer, exchange, theft, barter, gift, offer for sale, or offer for distribution, in any manner or by any means.
34. (hh) "Special event tobacco permit" means a special event tobacco permit for off-premises sales of tobacco products for a special event at a temporary location offsite from the licensed location.
35. (ii) "Stamp" means any impression, device, stamp, label, or print manufactured, printed, made, or affixed, as provided by the Commissioner.
36. (jj) "State" means the State of Georgia.
37. (kk) "Tobacco product" means cigars, cigarettes, little cigars, loose tobacco or smokeless tobacco, or any product derived either from tobacco or any of its derivates.
38. (ll) "Tobacco-related objects" means the same as set forth under O.C.G.A. § 16-12-170(1).

39. (mm) "Unregistered nonparticipating manufacturer" means a manufacturer of cigarettes that:

    1. 1. Is not a signatory to the Master Settlement Agreement (MSA) with the state.
    2. 2. Is not registered with the Attorney General of the state.
40. (nn) "Vapor device" means any system or device developed or intended to deliver a consumable vapor product to an individual who inhales from the device. Such term shall include, but not be limited to, an electronic nicotine delivery system, an electronic cigarette, electronic cigar, electronic pipe, vape pen, vape tool, or electronic hookah. Such term shall not include a fragrance or essential oil diffuser, an air freshener, or any product regulated as a drug or device by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act.
41. (oo) "Vapor product" means any consumable vapor product or vapor device.
42. (pp) "Vending machine" means any coin-in-the-slot device or other automated device that accepts payment and is used for the automatic merchandising of cigars, cigarettes, or loose or smokeless tobacco.
43. (qq) "Vending machine operator" means the person responsible for supplying products for, operation of, or maintenance of the vending machine.
44. (rr) "Warehouse" means any place of business of a wholesaler, manufacturer, importer, or shipper which is used to store tobacco products, vapor products, or alternative nicotine products in accordance with the express written approval of the Commissioner.

45. (ss) "Wholesale cost price" concerns cigars, loose tobacco or smokeless tobacco, or vapor products. It shall be computed as follows:

    1. 1. If a manufacturer is shipping to a state licensee untaxed cigars, loose tobacco or smokeless tobacco, or vapor products, the wholesale cost price shall be the manufacturer's invoice price at the time of sale, including the cost of shipping and handling, if not itemized. The value of any distributor promotions shall also be included in the wholesale cost price and shall not be subtracted or excluded from the wholesale cost price. Consumer promotions shall not be included in the wholesale cost price.
    2. 2. If a distributor sells to another distributor untaxed cigars, loose tobacco or smokeless tobacco, or vapor products, the wholesale list price shall be the selling distributor's sales price, including the cost of shipping and handling, if not itemized. The value of any distributor promotions shall also be included in the wholesale cost price and shall not be subtracted or excluded from the wholesale cost price. Consumer promotions shall not be included in the wholesale cost price.

    3. 3. If a distributor sells to a dealer untaxed cigars, loose tobacco or smokeless tobacco, or vapor products, the wholesale list price shall be the selling distributor's sales price, including the cost of shipping and handling, if not itemized. The value of any distributor promotions shall also be included in the wholesale cost price and shall not be subtracted or excluded from the wholesale cost price. Consumer promotions shall not be included in the wholesale cost price.

       Wholesale cost price is not used to calculate the excise taxes on consumable vapor products in a closed system pursuant to O.C.G.A. § 48-11-2(a)(5).

Authority: O.C.G.A. §§ 48-2-12, 48-11-1.

History. Original Rule entitled "Functions" adopted. F. and eff. June 30, 1965.

Amended: F. Aug. 5, 1970; eff. Aug. 25, 1970.

Repealed: F. May 5, 1982; eff. May 25, 1982.

Repealed: F. May 5, 1982; adopted as ER. 560-8-1-0.22-.01. F. and eff. May 10, 2007, the date of adoption.

Amended: ER. 560-8-1-0.25-.01 adopted. F. and eff. September 7, 2007, the date of adoption.

Amended: Permanent Rule of same title adopted. F. Sept. 26, 2007; eff. Oct. 16, 2007.

Amended: F. May 4, 2026; eff. May 24, 2026.