OLYMPIA, Wash. (AP) — Roll-your-own cigarette machines may be out of business for good, just as Washington state was looking to tax them.
The federal transportation bill signed last week included a provision to regulate roll-your-own businesses as manufacturers. Leaders at the company RYO Machine say those regulations are onerous and they have advised retailers with machines to cease operations.
Washington state had been working to tax the roll-your-own outlets, with lawmakers saying that the businesses were essentially avoiding the cigarette tax. The state estimates the law would have helped bring in between $12 million and $55 million per year.
Department of Revenue spokesman Mike Gowrylow says officials don’t believe the shutdowns will impact the state’s finances. They expect many users of roll-your-own machines to start buying regular cigarettes.
– Copyright 2012 The Associated Press.