A Call to End Double Standard for RYO Cigarette Dealers

ALBANY, NY (03/15/2012)(readMedia)-- A new breed of retail tobacco dealer has emerged in the Capital District and across New York State -- smoke shops offering self-serve, roll-your-own cigarettes at a fraction of the price of pre-packaged national brands. Because they circumvent state laws dealing with taxation, fair competition, public health and fire safety, their business is booming.

This week, state Attorney General Eric Schneiderman and New York City Corporation Counsel Michael Cardozo announced they are suing two RYO shops that dodge cigarette taxes and regulations by disingenuously claiming they don't technically "sell" cigarettes, but merely facilitate their customers' use of an on-premise cigarette rolling machine.

Convenience stores that carry pre-packaged cigarettes are losing sales, and state and county governments are losing tax revenue, to dubious roll-your-own businesses. Competition is healthy, as long as all competitors have to play by the same rules -- a requirement of maintaining a retail tobacco dealer license from the state Tax Department.

Now that the Attorney General has made clear that these roll-your-own establishments are operating in violation of a multitude of state laws, the New York Association of Convenience Stores believes that the Tax Department should initiate enforcement action to revoke their licenses unless and until they abide by the same regulations everyone else is required to follow.