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Monday, February 2, 2004

A tobacco tax bill that would open up tribes and Indian businesses to state enforcement is gaining steam in Congress.

A broad group of interests, including tobacco manufacturers, anti-smoking groups and convenience store owners, supports the legislation. They say it will protect kids from smoking and would protect their revenues from illegal sales on the Internet.

But tribes say it would allow states to infringe on their sovereignty. Provisions in the House version, which was approved by a committee last week, would subject "non-compliant' business in Indian Country to lawsuits brought by states. Similar language was stricken from the Senate version.

The bill gives states greater powers to collect taxes on the sale of cigarettes. It makes it a felony to evade state taxes by selling cigarettes online.

Get the Story:
Diverse Groups Back Cigarette-Tax Plan (The Washington Post 2/1)

Get the Bills:
PACT Act (S.1177) | Internet Tobacco Sales Enforcement Act (H.R.2824)

Relevant Links:
National Congress of American Indians - http://www.ncai.org
Campaign for Tobacco Free Kids - http://www.tobaccofreekids.org

Related Stories:
Tobacco tax bill still poses challenges for Indian Country (12/16)
Tribes left out of Internet and cigarette tax bills (11/19)

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