The New Hampshire Supreme Court is weighing the question, "What is a cigarette?"
Retailer North of the Border Tobacco drew the attention of state investigators in 2009, when it installed machines that can roll 200 cigarettes in 10 minutes. Customers buy loose tobacco and rolling tubes from the retailer's store and then pay to use the machines.
State lawyers argue customers leave with cigarettes that didn't exist when they walked into the store in Brookline, a town of about 5,000 residents. They say that makes the retailer a cigarette manufacturer that should be paying into a national fund that helps states offset the Medicaid costs of tobacco-related illnesses.
The retailer's lawyers say what goes into the rolling machines already is a cigarette so nobody's manufacturing anything.
The justices didn't indicate Wednesday when they would rule.