SPRINGFIELD, IL –Senator Terry Link (D-Waukegan) is sponsoring legislation that will require “roll your own” (RYO) cigarette machines to be taxed equal to cigarette manufacturers.

RYO machines use loose pipe tobacco which is taxed lower in Illinois (18% wholesale price) than cigarettes ($0.98 per pack).  In addition, cigarettes produced by these machines do not comply with state regulations concerning warning labels or fire standards.

“By not taxing RYO machines, the State of Illinois could be losing up to $2.2 million in revenue that could help fund education or pay down our backlog of bills,” said Senator Terry Link.  “By using these machines, there is a growing disadvantage to legitimate retailers and manufacturers who are paying their taxes.” 

Senate Bill 2900 would require cigarette machine operators to obtain a license through the state costing $250 a year.  They would also have to apply a tax stamp to every pack of cigarettes made, the same as commercial manufacturers do currently.  This would allow the state to collect taxes on each pack of cigarettes they produce.  In addition, they would not be able to ship cigarettes within or across state lines.  

According to the American Lung Association, the federal government has increased the tax on RYO tobacco at an equivalent rate to the federal cigarette tax.

It is estimated that there are now over 1,700 filling stations nationwide in 40 states, with about 28 stores in Illinois having filling stations.  Filling stations can produce approximately 200 cigarettes in 8 to 10 minutes. 

Category: Releases


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