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Tuesday, September 30, 2003

The Choctaw Nation and the Chickasaw Nation signed new tobacco compacts with the state of Oklahoma on Monday.

The agreement calls for the tribes to share 25 percent of their tax revenues with the state. But should the state tax increase, the tribes will pay an additional 50 percent of the increased amount. For example, if the tax were raised from 23 cents to 50 cents, the tribes pay 25 percent of the first 23 cents and 50 percent on the 27 cents.

The Choctaw and Chickasaw are two of the largest tribes in the state. Smaller tribes are objecting to the state's proposed increase, saying it will force them to shut down their facilities.

The Choctaw-Chickasaw compact includes exemptions. The 50 percent provision will not apply to smoke shops that are within 20 miles of another state that has a lower state cigarette tax. The 50 provision will not apply to smoke shops that operate within a 10 mile radius of another tribe with an older compact.

Get the Story:
Chickasaw and Choctaws sign Controversial Tobacco compact (The Native American Times 9/29)
Governor Henry, Choctaw and Chickasaw Nations Agree to New Tobacco Compact (State of Oklahoma 9/29)
Tribes sign compacts with state (The Oklahoman 9/30)
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Related Stories:
Okla. tribes feel snubbed by governor on compacts (9/29)
Okla. tribes upset over state of compact negotiations (9/23)
Okla. tribes vent frustrations over compacts (9/22)

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