Efforts by the state Department of Revenue to collect tobacco taxes from shops offering the use of cigarette rolling machines face a roadblock in court. A Dane County judge on Friday issued an order prohibiting the state from collecting higher taxes from the stores while a legal challenge from several of the businesses is pending.
The Department in September sent letters to roll your own businesses across the state informing them that their services count as selling manufactured cigarettes, so they need to collect the full taxes on the products and also get the necessary permits and certifications from the state. Several retailers filed suit against the action, claiming they are exempt because it’s the customers making the cigarettes.
Kurt Kruchten, who runs “Smokes-4-Less” in Slinger, says the stores are offering a valuable option for consumers and the businesses are not the same as buying a pack of cigarettes from the store.
A spokesperson with the Department of Revenue says the agency is disappointed with the court’s decision, but remains dedicated to enforcing the state’s tobacco laws and regulations fairly and equitably.
WIBA’s John Colbert contributed to this report.