The 2012 Legislature passed a bill that made several changes to the laws affecting roll-your-own (RYO) cigarettes when produced by a commercial cigarette-making machine. The changes are effective July 1, 2012.
The changes require RYO cigarette retailers to:
- Obtain a Cigarette Retailer license for each location.
- Obtain a Commercial Cigarette Making Machine license for each location.
- Use only commercial RYO machines that have secure metering devices.
- Provide containers for customers to carry RYO cigarettes out of the store and attach the proper number of cigarette tax stamps to the containers.
- File a Roll-Your-Own (RYO) Cigarette Report with Department of Revenue each month. The report includes:
- Number of RYO cigarettes produced
- Tobacco brand name
- Tobacco manufacturer’s address
- Ounces of tobacco purchased
Taxing RYO cigarettes:
- Purchase cigarette tax stamps in denomination of 20 or 200.
- Provide cigarette tubes/papers to customers in increments of 20.
- Provide the consumer with a container to carry the RYO cigarettes out of the store.
- Attach the appropriate number of cigarette tax stamps to the container they provide.
WARNING: It is a gross misdemeanor for any person to use a stamped container more than once to transport RYO cigarettes from a retailer’s place of business.