A few months ago The Anti-Counterfeiting Blog reported about a new "roll your own cigarette" (RYO) trend where customers roll their own cigarettes in shops that provide the materials and equipment to do so.  

Just to refresh your memory, the City of New York has sued and won a case against RYO shops forcing the shops to close. Now lawmakers in the State of Michigan are having a similar issue with RYO but their resolution is quite different. The State of Michigan is trying to pass a measure that would require RYO cigarette shops to pay $2.00 in taxes for every pack that leaves a RYO shop.

Michigan State Sen. Roger Kahn claims that RYO shops are essentially cigarette manufactures and should be classified and taxed as so. The shops of course claim otherwise.

Tax evasion or not, it looks like RYO shops are losing the tax battle.