ND0926115

Title: Wisconsin to Enforce Roll-Your-Own Taxes

Description: According to state law, if a retailer or the retailer?s customer operates a RYO machine on premise, the retailer is both a cigarette manufacturer and distributor.

Page Content:

MILWAUKEE ? The Wisconsin Department of Revenue issued a notice last week to roll-your-own cigarette retailers in the state that they must follow state law and regulations if they are operating a RYO machine.���

According to state law, if a retailer or the retailer?s customer operates a RYO machine on the retailer?s premises to make cigarettes with loose tobacco, the retailer is both a cigarette manufacturer and distributor.

State law requires the retailer to:

• Obtain both manufacturer and distributor permits from the Wisconsin Department of Revenue. A retailer needs the cigarette manufacturer permit because its business involves producing cigarettes with loose tobacco, as well as a distributor permit to ensure that all cigarette packages the customer leaves the retail premises with are affixed with the appropriate Wisconsin cigarette tax stamps.
• Sell more than 50% of the RYO cigarettes wholesale to other retailers or vending machine operators, and retailers cannot own, control or operate these other entities. This is necessary only if retailers wish to continue selling RYO cigarettes directly to customers.
• Obtain certification from the Wisconsin Department of Justice to be placed on its approved directory of cigarettes for sale in Wisconsin in order to comply with state law and regulations.
• Obtain certification from the Wisconsin Department of Safety and Professional Services that these cigarettes meet the fire safety performance standards.

Retailers who fail to meet the above requirements could face fines, penalties, permit revocation, imprisonment and/or seizure of the tobacco and other personal property used in this activity.

Content Subject: Operations

Formatted Article Date: September 26, 2011

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