Wis. committee to consider cigarette machine tax - WAOW - Newsline 9, Wausau News, Weather, Sports

Wis. committee to consider cigarette machine tax

MADISON, Wis. (AP) - The Legislature's budget committee is set to review Gov. Scott Walker's plan to clarify roll-your-own cigarette machine operators owe the state an excise tax.

Wisconsin law requires cigarette manufacturers to pay a tax of $2.52 per pack. The definition of manufacturer doesn't specifically include roll-your-own machine owners but state officials have imposed the tax on them anyway.

A Wausau tobacco store owner sued in 2011 arguing roll-your-own customers do the manufacturing, not the machine owners. The owner, Robert Petersen, withdrew the lawsuit last year after President Barack Obama signed federal legislation declaring roll-your-own machine owners manufacturers.

A provision in Walker's executive budget would clarify commercial machine owners are cigarette manufacturers and are subject to the manufacturers' tax. The Joint Finance Committee is scheduled to review the provision Wednesday.

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