35 Miss. Admin. Code Pt. VIII, Subpt. 3, Ch. 03 — Cigarette Making Machines; taxability of Tobacco Products

100 Federal guidelines, IRS 26 U.S.C. 5711, 5712, 5713 and 27 CFR Part 40 of the Alcohol
and Tobacco Tax and Trade Bureau regulations, require every person, before
commencing business as a manufacturer of tobacco products, to apply for a permit from
the appropriate federal agency to engage in such business and file a bond. A person shall
not engage in business as a manufacturer of tobacco products without a permit to engage
in such business. Manufacturing shall include the making of cigarettes by the use of a
cigarette making machine on the premises of or in an area controlled by a tobacco
retailer.
101 A "cigarette making machine" is a machine or mechanical device (designed for
commercial use, primarily operated by a power source other than human power, such as
electricity) that is loaded with loose tobacco and cigarette tubes, cigarette papers or any
substance not containing tobacco for the purposes of producing, filling, rolling,
dispensing or otherwise generating cigarettes. Hand -held, manually operated machines
sold by retailers to consumers for off -premises use in making cigarettes for personal
consumption are not considered cigarette making machines for purposes of this
regulation.
102 Pursuant to Miss. Code Ann. Section 27 -69-15, a tobacco retailer is required to present
all un-stamped cigarettes it receives to a permitted wholesaler within 48 hours of receipt
for the purpose of having the proper stamps affixed to the cigarettes in the same manner
as if the cigarettes had come from the wholesaler.
103 In addition to other means of receipt, a tobacco retailer shall be deemed to receive
cigarettes if manufactured on-site or in an area controlled on behalf of the tobacco retailer
by an employee or agent operating the machine or permitting others, including customers,
to operate a cigarette making machine. Therefore, a tobacco retailer must ensure that all
cigarettes received via manufacturing by a cigarette making machine as outlined in the
preceding sentence are properly stamped.
104 Any retailer who assembles cigarettes on -site using a cigarette making machine and who
did not sign the 1998 Master Settlement Agreement, as defined in Miss. Code Ann.
Section 27 -70-3, shall be considered a manufacturer subject to the Nonsettling
Manufacturer Cigarette Fee as well as all requirements set forth in Miss. Code Ann.
Section 27-70-1, et seq. for nonsettling manufacturers.
Subpart 04 Excise Tax on Medical Cannabis