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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:

Retailers must:

  • 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.