The federal Alcohol, Tobacco Tax and Trade Bureau (TTB) has issued a guidance document on how the agency will enforce the recently enacted law classifying operators of cigarette roll-your-own machines as cigarette manufacturers. A "guidance" document is a written statement as to how the TTB intends to interpret and enforce a particular federal law.
In the recently released guidance document titled "Cigarette-Making Machines and Other Tobacco Product Machines Made Available for Use by Consumers," the TTB states the following:
In addition, the guidance document also makes reference to the change in federal law applying to those persons who have formed "nonprofit" membership clubs in an attempt to avoid paying the federal excise tax and complying with the permitting, bonding, recordkeeping, reporting and inventory requirements. The guidance document states that "Based on TTB's current understanding of these scenarios and the applicable law, it is extremely unlikely that TTB will conclude that these [nonprofit] organizations are exempt from excise tax liability and associated IRC [Internal Revenue Code] obligations.
A copy of the TTB Guidance document accompanies this article.