Tax Commission snuffs out tribal tobacco rules for now

 
By Michael McNutt   
Published: May 31, 2007

A state rule that angered tribal leaders for what they said circumvented tobacco compacts with Oklahoma has been pulled back because "it was not a good idea,” the main compact negotiator for the state said Wednesday.

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Possible outcomes in arbitration

If the state loses...

•Tribes would win their point that the state cannot pass a rule to change a tribal compact; as a result, a new compact probably would have to be negotiated, state Treasurer Scott Meacham said.

If the state prevails ...

•The state would prove its case that cigarettes with the cheapest tribal tobacco stamps cannot be sold anywhere but specific areas along the state's border, Meacham said.

The tax structure
Nontribal retailers must use tobacco stamps that cost $1.03 per pack.

Tribes with a tobacco compact pay an 86-cent rate.

Tribes without compacts are to pay for a 77-cent tobacco stamp on each pack of cigarettes.

Reaction
Osage Principal Chief Jim Gray said he still questions whether the state-tribal compacts — with different levels of tribal stamps — are effective. He prefers a formula that has one rate, similar to compacts in place for 10 years before the current compacts were negotiated "I don't know of a single person affected by this compact that is happy,” he said.

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