New tobacco law puts local stores out of business - 21 News Now, More Local News for Youngstown, Ohio -

NEWTON FALLS, Ohio - A company that manufactures roll-your-own cigarette machines has filed suit in federal court challenging a new law that redefines tobacco manufacturing claiming it is unconstitutional and forcing many small businesses to close.

At Rolling Smokes Shop in Newton Falls, the most popular thing with customers was the roll your own machine that allowed them to roll their own cigarettes at half the cost of packaged smokes. The shop received a small fee for the use of the machine.

Now, since the new federal regulation is labeling these shops as tobacco manufacturers and taxing roll your own products at the same rate as regular cigarettes, the savings is gone and so are the customers.

"We've lost over 60% of our business. We've laid off three employees. We've got two left and we're just trying to stay afloat right now," said Rolling Smokes owner Jim Bugos, Jr.

Bugos says he has been in contact with other store owners here in the Valley, and across the country, who say the roll your own customers represented up to 80% of their business.

"Most of the shops have closed," Bugos said.

A Trumbull County business that manufactures the roll your own machines has seen its workforce drop to around 20 from a peak of 60 before the new law took effect.

Bugos says when you add it all up it means a lot of people are suddenly out of work.

"Thousands of jobs across the country. The thing that upsets me the most is I'll find something else to do, but for the employees and customers that came in here, losing the savings or losing an income," Bugos said.

The federal lawsuit contends that the new law is unconstitutional by being in violation of equal protection and due process under the Fifth Amendment.

RYO of Girard, which manufactures the machines, is not a party to the lawsuit.