Roll-your-own outlets not set to collect Wash. tax

Roll-your-own outlets not set to collect Wash. tax

Credit: ASSOCIATED PRESS

This photo shows three different types of tobacco, from left, cigarette tobacco, Criss Cross pipe tabacco, and loose pipe tobacco from the Georgetown Tobacco shop in Washington, photographed side by side at the Associated Press in Washington Monday, Nov. 16, 2009. After the Obama administration placed a 2,000 percent tax increase on cigarette tobacco this April, roll-your-own tobacco brands like Criss Cross and Farmers Gold came off the shelves almost overnight, replaced by pipe tobacco with the same names. (AP Photo/Haraz N. Ghanbari)

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KREM.com

Posted on July 2, 2012 at 2:22 PM

OLYMPIA, Wash. (AP) -- Roll-your-own cigarette companies have not started collecting Washington state tax.
  
State officials said Monday that only one business purchased tax stamps for the machines. Department of Revenue spokesman Mike Gowrylow suspects other outlets have shut down while the industry awaits guidance from the courts.
  
The Washington Supreme Court issued a stay last week, blocking a lower court ruling that had prohibited the state from collecting the tax starting on July 1. The high court is expected to consider a more permanent resolution next week.
  
Nearly 100 roll-your-own machines are operating in Washington, and the state estimates the law is supposed to help bring in between $12 million and $55 million per year.
  
Opponents of the law contend that the tax should have been approved by two-thirds of state lawmakers because of a voter-approved initiative.

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