The Washington Post reported this week that the U.S. Senate has approved language that would classify tobacco shops and convenience stores that offer roll-your-own (RYO) cigarette machines as manufacturers.
Slapping the label of manufacturer on these RYO stores would subject them to a series of federal and state regulations that would in all probability put an end to the RYO machines by making them too expensive to license and operate.
The language was tucked into an amendment to the $109 billion federal highway bill that was written to provide aid for rural schools and was approved on a bipartisan vote. The RYO language was contained in a single paragraph in the Secure Rural Schools amendment.
The Post reported that the sponsor of the rural school amendment, Sen. Max Baucus (D-Mont.), said the $97 million the RYO provision would generate could help support the $346 million program to support schools and road projects.
Earlier this month, DOR's blog reported that RYO machines were coming under intense scrutiny in many state houses due to lost tax revenue, given that RYO cigarettes are taxed at a fraction of those commercially packaged. In Massachusetts, Gov. Deval Patrick has proposed increasing the excise tax on loose tobacco to approximate the $2.51 excise tax now paid on a pack of cigarettes, as well as to institute an annual license fee of $25,000 for each RYO machine.
Prep Early for Next Tax Season posted on May 20
Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now …Continue Reading Prep Early for Next Tax Season
DOR’s Participation in the Family Court Workshops posted on Apr 22
Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community …Continue Reading DOR’s Participation in the Family Court Workshops
DOR Ruling Favorable in First Circuit Judgment posted on Mar 17
The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total …Continue Reading DOR Ruling Favorable in First Circuit Judgment