SIOUX FALLS, SD - A South Dakota bill would like to characterize stores that maintain or provide roll-your-own cigarette machines as cigarette manufacturers and therefore subject to a higher tax rate, Keloland TV reports.

House Bill 1138 seeks to recoup what its proponents maintain is a significant loss of state revenue.

"What happens today is all of this bulk tobacco is going way under the radar and being taxed only about one-tenth of what it should be. It's a sin tax and should be equal to rolled and manufactured tobacco," said state Rep. Charlie Hoffman.

Tobacco store owners maintain their role in manufacturing is limited and that they should not be subject to any additional taxes.

"I would grab the tobacco out of one of our bins depending on what flavor of tobacco they wanted and then load the tubes in the cartridge," said tobacco store owner Jada Pyper, describing her role in assisting her customers during the roll-your-own process.

Pyper said every other element of making cigarettes ?" pouring tobacco into the machine, loading the cartridge of cigarette papers, and turning the machine on ?" is left to the customer.

"It's like going to the store and buying coffee beans. You can buy them already ground or you can buy the beans and use their grinder. It doesn't make you a coffee manufacturer," Pyper said.

Pyper??s store charge $25 for the tobacco, tubes, a container, and use of the machine to produce one carton of cigarettes. If House Bill 1138 is implemented, the total cost would double.

Hoffman said it is unclear how the bill would affect tobacco stores that sell bulk tobacco but do not offer roll your own capabilities.

For more information about roll your own tobacco, read "Roll Your Own Profits" in the January NACS Magazine.