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News » 2009 » September » Tobacco store is to contest accusations of illegal cigarette rolling

Tobacco store is to contest accusations of illegal cigarette rolling


Tobacco Haven is not rolling cigarettes as it is alleged by the authorities, states the lawyer for the little Brookline-based tobacco store, which was accused in rolling cigarettes by permitting customers to use using rolling machines in the shop. New Hampshire Deputy Attorney General Bud Fitch submitted an action last week claiming that tobacco shop rolls cigarettes, violating provisions of master settlement agreement between cigarette industry and 46 American states. The law suit was filled to the Supreme Court of Merrimack County.

The accused shop owns two large rolling machines, located near the back door. Customers, who purchase the goods necessary for rolling cigarettes, like loose tobacco, paper and filters, can make use of these devices to roll their own cigarettes, allowing smokers to save up to a half of the money they have to pay for brand cigarettes. Cincinnati attorney Jeffrey Bird, who will represent the shop owner in the County Court, admitted that lending the machines to customers doesn’t make the shop a cigarette maker. He said the shop could not be compared to cigarette-making plants in Virginia, since the machines in the shop roll a small number of cigarettes in contrast to hundreds manufactured by the plants’ machinery.

The Court hearing will start at 11 a.m. Oct. 13. The state attorney submitted the lawsuit last week. Several weeks before he had contacted the Tobacco Haven owner Correia Jr., inquiring whether the shop was making cigarettes.

According to the shop attorney, Mr. Correia answered with a letter of four pages, trying to prove that his shop was not producing any tobacco products. In conformity with the New Hampshire legislation, the producers of cigarettes have to pay the state for the cigarettes they manufacture and vend.

Bird said that many shops across the nation own identical machines that permit smokers to roll their own cigarettes from materials bought at the shop, helping them to save much money. All these businesses don’t pay taxes, which tobacco companies are subject to under the settlement agreement.

The machines located in stores are much larger than those, bought by smokers for personal use. The in-store rolling machines are larger and faster than the ones consumers buy for home use.

The Cincinnati lawyer added that this is the first case of such kind in the history of the country. Sales of materials for rolling cigarettes, including both tobacco and small devices used to roll cigarettes at home dramatically increased approximately a decade ago, after the conclusion of master settlement agreement which forced the tobacco industry to pass millions to states for healthcare to treat disease caused by smoking.

In addition, federal, state and even municipal taxes on tobacco products have kept growing over the last ten years. New Hampshire has received approximately $50 million under the tobacco settlement agreement. However, a small part of this revenue was passed to health care, as the greater part was transmitted to the state general fund.

But, the destiny of the payments from tobacco industry is in danger right now, as more and more people start rolling their own cigarettes and use similar machines, like in the case of Tobacco Haven.

According to New Hampshire Deputy Attorney General, if the state fails to prevent such businesses from renting rolling machines to smokers, it could result in lawsuits from the tobacco industry, which has to pay settlement money but faces losses.