Washington Report: NACS Urges Support for RYO Legislation

Building on the momentum from last week's successful Day on Capitol Hill event, NACS asks members to appeal to Congress for its support of roll-your-own tobacco legislation.

March 29, 2012

WASHINGTON - NACS urging its members to call on Congress for support of legislation that will resolve an ever increasing problem regarding the Internal Revenue Code??s treatment of roll your own tobacco. This legislation will confirm that retailers who permit consumers to use commercial roll your own (RYO) cigarette machines to produce cigarettes are classified as "manufacturers" of tobacco products.

In recent years, roll-your-own (RYO) tobacco machines have surfaced at various traditional and non-traditional retail locations, which put convenience stores at a competitive disadvantage.

Legislation supported by NACS seeks to provide regulatory certainty that is compromised by the use of lower-taxed pipe tobacco in RYO machines. NACS is urging members of Congress to support H.R. 4134, a bill introduced by Rep. Diane Black (R-TN) that would level the playing field for all retailers selling tobacco products and provide long-term regulatory and tax certainty. Similar legislation has passed in the Senate as part of the Highway bill.

The legislation does not call for a new tax on RYO cigarettes made with a commercial RYO machine ?" it simply ensures that all state and federal tobacco taxes are legally collected.

Last week attendees of NACS Day on Capitol Hill brought this issue to the attention of members of Congress ?" but more action is needed ?" ask your legislator to support H.R. 4134.

Read more about RYO in NACS Magazine and in the Government Relations section.

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