Kaw Nation tobacco compact eliminates lower border sales rate

Kaw Nation Chairman Guy Munroe and Oklahoma Gov. Mary Fallin (R) sign two compacts. Photo courtesy Oklahoma governor's office.

A tobacco tax compact signed by the Kaw Nation eliminates a provision affecting the sale of products near the state border, The Native American Times reports.

Under agreements that were signed in 2008, smoke shops within 20 miles of Oklahoma’s borders with Arkansas, Kansas or Missouri can sell tobacco at lower rates. But the Kaw Nation agreed to start collecting the same rate for all sales starting July 1, the paper said.

The change makes a big difference, the paper notes. The tribe currently charges a $0.2575 tax per pack of cigarettes but the rate will go up to $1.03 per pack, resulting in a potentially big boost in revenues.

The agreement could affect the other 27 tribes whose compacts are expiring this year.

Get the Story:
No more border tobacco tax reduction for Kaw Nation (The Native American Times 3/13)

Relevant Documents:
Tobacco Tax Compact Between the State of Oklahoma and the Kaw Nation (March 2013)

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Kaw Nation signs tobacco and 'burn ban' compacts in Oklahoma (3/12)

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