ALBANY, N.Y. -- In a press statement, the New York Association of Convenience Stores (NYACS) said, "there is still time--and a desperate need--for New York to join the growing list of states enacting legislation to regulate commercial roll-your-own cigarette machines."
NYACS President Jim Calvin said, "The Senate and Assembly must act now to stop the spread of unregulated RYO shops, before they do more damage to law-abiding retailers, New York taxpayers and public health."
RYO shops sell customers loose tobacco to feed into an on-premise machine that produces a carton of cigarettes in minutes. The customer pays tax only on the loose tobacco, which is taxed at a far lower rate than that for pre-packaged cigarettes. Because of the tax differential, the finished product costs less than half the price of pre-packaged cigarettes, enticing smokers. Consequently, said NYACS, RYO shops are reaping enormous profits, explaining why the number of New York stores with commercial RYO machines has grown from a handful to more than 50 in just two years, and continues to rise.
In addition, RYO shops currently ignore fire safety manufacturing standards, tax-stamping requirements, Tobacco Master Settlement Agreement (MSA) provisions, product display restrictions, health warning labels, minimum package sizes and minimum pricing requirements that licensed convenience stores are required to comply with, according to NYACS.
"For example, if a state inspector finds even one pack of cigarettes without a state tax stamp in a convenience store, under state law, the owner is presumed guilty of tax evasion and subject to criminal arrest," Calvin said. "None of the cigarettes produced at RYO shops bear tax stamps, yet those shopkeepers risk no penalty whatsoever."
Arkansas, Connecticut, Iowa, Idaho, Illinois, Michigan, Oklahoma, South Dakota, Tennessee, Vermont, Virginia, Washington and Wyoming either have enacted or are in the process of enacting legislation requiring commercial RYO shops to abide by the same rules as other tobacco retailers.
In New York, Assemblyman Jeff Dinowitz (D) and Senator Tom Libous (R) are sponsoring legislation to do the same, but with less than a week left in the 2012 legislative session, neither house has passed it.
NYACS called upon the legislature to make this bill a priority.
"This is not about trying to put anyone out of business," said Calvin. "Rather, it is about holding everyone in the cigarette retailing business to the same standards. It's only fair."
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