I think it’s purely technical, but when a store opens a pack and create loosies, it creates a new product, that then has to be re-taxed. It’s just like a store opening a box of candy bars in order to sell them individually. The store paid tax to the wholesaler for the carton full of boxes of candy bars, but that doesn’t mean that you can argue that the tax has already been paid, and therefore, you should not have to pay tax when you buy the individual bar.
What has to happen, for tax purposes, is that the store buys the pack, with taxes, then opens it up and puts the individual cigs in a jar, or whatever, and prices them at whatever is required for them to make a profit (unless this is a loss leader), and then when they are sold, charges tax on each one.
Which may be the rub-- there may not be a way to ring up tax on a loosie, because UPC symbols on packs automatically ring up the cigarette tax, but there’s no way to ring up anything but sales tax on a loosie, and at any rate, no way to determine if anything but regular sales tax ought to be charged, since the store is going to pass on the special tax in the price. Should it be charged twice, or just the sales tax? Rather then sending this to the legislature, it’s easier to ban loosies.
There is also an issue I just thought of, which is that loosies are not packaged. You can’t sell other types of consumables individually, without individual wrapping. I know there is some kind of cigarillo (a thing that is shaped like a cigarette, but is a little longer, and has a plastic tip, and is the color of a cigar) that can be bought individually, and is wrapped in plastic.
If loosies are that popular, then maybe cigarette companies need to pick up on it, and package cigarettes individually.
Really, when you think about it, someone could do any kind of tampering with a loose cigarette, or just handled it with dirty hands (say, someone with hepatitis, who went to the bathroom, and then didn’t handwash carefully, or someone with a cold who coughed or sneezed on them). That alone is a good enough reason for banning them. Come to think of it, Eww.