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“This law is not designed for people to comply with,” said Phil Acordino, president of RYO Machines, which began manufacturing roll-your-own cigarette machines in 2008.
“It’s designed to put these people out of business," he said. "They couldn’t get a manufacturer’s permit if they wanted to.”
The tax difference led to a flood of mom-and-pops that started selling loose tobacco, instead of major cigarette brands. Around 1,000 stores in 42 states installed roughly 2,000 roll-your-own machines, according to RYO Machines.
According to the Associated Press, the new law affecting roll-your-own shops will generate nearly $100 million annually in government revenue.
The new federal law makes it harder for stores with roll-your-own cigarette machines to classify the tobacco they sell as pipe tobacco –- which is taxed at a lower rate than cigarette tobacco.
Originally posted by stanguilles7
Looks like these shops are misusing a loophole meant for pipe tobacco. This new law will correct that loophole. So?
The new federal law makes it harder for stores with roll-your-own cigarette machines to classify the tobacco they sell as pipe tobacco –- which is taxed at a lower rate than cigarette tobacco.
Want to smoke tobacco without paying taxes? Grow and cure your own. Problem, solution.
Originally posted by stanguilles7
Looks like these shops are misusing a loophole meant for pipe tobacco. This new law will correct that loophole. So?
The new federal law makes it harder for stores with roll-your-own cigarette machines to classify the tobacco they sell as pipe tobacco –- which is taxed at a lower rate than cigarette tobacco.
Want to smoke tobacco without paying taxes? Grow and cure your own. Problem, solution.
Originally posted by LittleBlackEagle
Originally posted by stanguilles7
Looks like these shops are misusing a loophole meant for pipe tobacco. This new law will correct that loophole. So?
The new federal law makes it harder for stores with roll-your-own cigarette machines to classify the tobacco they sell as pipe tobacco –- which is taxed at a lower rate than cigarette tobacco.
Want to smoke tobacco without paying taxes? Grow and cure your own. Problem, solution.
encouraging the gov to make people pay more for their personal preferences and freedoms to consume, use, like what they wish that causes no one else harm, is a slippery slope with a cliff attached.
Originally posted by JibbyJedi
I have been rolling my own butts for a while now, but I do it myself at home with a rolling machine. It takes me about a half hour to roll, and pack down, about 5 packs, I never use the store machines.
I also notice a big difference in chemical tastes between the main brands I use to buy and the pipe tobacco I roll myself. American cigarettes have that chemical that extinguishes the cigarette when it's sitting there for about 1 minute, fire safe cigarettes, and that chemical tastes awful.
Buy a $30 rolling machine and do it yourself, or use a pipe, the bags of tobacco will always be available to buy.
Originally posted by JibbyJedi
I have been rolling my own butts for a while now, but I do it myself at home with a rolling machine. It takes me about a half hour to roll, and pack down, about 5 packs, I never use the store machines.
I also notice a big difference in chemical tastes between the main brands I use to buy and the pipe tobacco I roll myself. American cigarettes have that chemical that extinguishes the cigarette when it's sitting there for about 1 minute, fire safe cigarettes, and that chemical tastes awful.
Buy a $30 rolling machine and do it yourself, or use a pipe, the bags of tobacco will always be available to buy.
Originally posted by LittleBlackEagle
your reply helped me realize i have this issue confused. as it sounded at first they wanted to tax the raw materials higher but i now think i understand it as they want to tax stores that roll them for you and sell them pre rolled is that correct?
“It’s quite clear that this is politicians and big tobacco working against small businesses,” Smith said.
It’s true the Altria-owned tobacco giant Philip Morris USA has been a strong backer of the federal legislation.
Liggett Group says it’s losing sales to the roll-your-own upstarts. The discount tobacco maker and Altria Group Inc. (MO) are fighting alongside health advocates -- after decades at odds -- to press Congress and the Food and Drug Administration to equalize tax payments on various forms of tobacco and to enforce the same health rules imposed on major producers.