@lankfordjl
So after reading the article...my understanding is that cigarettes produced by the RYO machines will be taxed more but not the tobacco bought to pour into the machines. Am I right?
Yes.
We still have the tax parity issue for RYO being sold as fake pipe tobacco, but this is still a big win.
Schmitzbitz is correct as well. It is ironic, but without cigarettes, there would probably not be much pipe tobacco, if any at all.
@tekwyzrd
Late last year I came across mention of a new tobacco tax plan and read the related portion of the highway bill. It would increase the federal tax on both ryo and pipe tobacco to almost $50/lb and the tax on cigarettes to almost $100/carton.
Do you have a link on that, or some clue to help find it?
@tiltjlp
No matter what happens in the future, it's good that the Feds realized the difference between RYO and pipe tobaccos. Anything that delays their attention on pipe tobacco is a plus.
That's not what happened here.
There is still the issue of RYO vis. pipe tobacco, no good definition between the two that the government has yet recognized, and the tax parity issue.
What happened is that RYO Retail stores with automated rolling machines will be re-classified as cigarette manufacturers, and taxed as such.
That will likely put most or all of them out of business, thus removing a huge sales incentive for the RYO masquerading as pipe tobacco ... and satisfying Big Tobacco's gripe and getting them out of the picture.