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Monday, April 25, 2011

Cigarette-making Shops Start Drawing Attention

Some states are looking at make-your-own-cigarettes shops and smelling something foul.

The Wall Street Journal reported that New Hampshire sued several retailers, contending they act as cigarette manufacturers and should pay applicable fees.

Michigan recently warned shops there that using the machines constitutes manufacturing; it said they must obtain a manufacturer license and meet other requirements or face criminal and civil penalties.
Michigan also said retailers could not sell discount cigarettes without a tax stamp or face penalties.
Wisconsin Department of Justice spokesman Bill Cosh said Friday, "The Wisconsin Department of Justice and the Department of Revenue are aware of these machines and are examining the relevant legal issues."

State Department of Revenue spokeswoman Stephanie Marquis said the shops, if they are following the law, do pay their full share of state and federal taxes.
"There is a concern," she said, "but we need more information: Are they a manufacturer or a retailer?" A manufacturer would have more scrutiny and laws to follow, Marquis said, including one that requires cheap cigarettes have fire-retardant bands that many smokers dislike.

Nick Patel, co-owner of Save On Cigarettes, 5201 Washington Ave., acknowledged there are some questions about the matter but said, "We're currently on the legal side of it." 

Todays tip: Kiss home page.
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