Ciggy Shack Rolls On

For just over two weeks the cigarette rolling machines at the Ciggy Shack sat vacant and silent, but on Friday those rolling machines — which are at the center of a controversy with the Department of Revenue — were in full operation once again.

The machines started rolling Friday after Dane County Circuit Court Judge Juan B. Colas issued a temporary restraining order preventing the DOR from taking steps needed to force roll-your-own tobacco business owners to comply with certain regulations, according to a JSOnline report.

Two weeks ago, Ciggy Shack owner Kent Krueger, along with 50 to 100 other roll-your-own business owners statewide, him that he needed to obtain manufacturing and distributor permits, or remove his rolling machines from his business within 30 days.

The restraining order bars the DOR from enforcing these regulations — at least until a court hearing Nov. 23 when a judge will consider whether to extend the order.

“It was a relief,” said Krueger, who was in attendance at the initial three-hour hearing in Madison Friday. “The judge was certainly intuitive to how our business works, and understands that we are a rental business — not a manufacturer.”

According to the DOR, Krueger is deemed a manufacturer since his jukebox-sized machines produce cigarettes at a high rate of speed for customers. As a result, the DOR ordered roll-your-own business owners to cease operating their rolling machines.

However, Krueger said his business simply makes it easier for customers to roll their cigarettes, which is something they do on their own at home. Krueger supplies the paper, tobacco and filters for customers. Then, they rent the machines to roll their cigarettes quickly.

He said a typical machine rolls about 25 cigarettes a minute, far less volume than machines large manufacturers use that are capable of rolling 20,000 cigarettes in the same amount of time.

Krueger said his business fills a niche for smokers that like a higher quality tobacco, and want to save some money. On Tuesday, that market was out in full at the Ciggy Shack. All three machines were clicking and buzzing as tobacco enthusiasts rolled boxes of cigarettes.

“I’ve been calling everyone up to let them know we are back in business,” said Krueger, who collected more than 400 signatures on a petition to keep his store open. “We still have tons of signatures coming in.”

Wisconsin isn’t the only state in the nation embroiled in a regulatory battle regarding roll-your-own tobacco business.

In October, the United States Alcohol and Tobacco Tax and Trade Bureau ruled that a business operating a cigarette-making machine at its premises is engaged in cigarette manufacturing, and must obtain proper permits.

However, a U.S. District Court in Ohio filed a temporary restraining order preventing the federal bureau from enforcing the provisions outlined in its decision. In December, the temporary restraining order was replaced with a preliminary injunction until a resolution is reached on that appeal. 

Krueger said he expects a similar injunction to eventually emerge from the Wisconsin courts as well.