Tahlequah Daily Press

State News

January 10, 2006

Council considers tobacco pact plan

A plan to eliminate store-to-store tobacco sales among Cherokee Nation smoke shops suffered a setback Friday.

Cherokee Chief Chad Smith’s plan to eliminate the sale of cigarettes among Indian smoke shops was removed from a six-point plan presented to the tribal council.

The modified plan was approved by the council’s Rules Committee on a split vote. Councilors approved the plan after the stipulation to prohibit store-to-store sales was omitted and other amendments made.

Smith suggested retail-to-retail sales would not be necessary if the tribe’s historic tax margin over nontribal stores could be maintained.

If approved by the full council, Smith will present it to the state when he renegotiates the tribe’s compact.

Smith urged the council to look ahead and pointed to recent proposed tax stamp changes by the Oklahoma Tax Commission that Gov. Brad Henry endorsed. Those changes would limit the number of 6-cent tax stamps that smoke shops could sell.

“The stakes have been raised,” Smith said. “We’re at that juncture. Our greatest negotiating power was 60 days ago before those rules came into effect.”

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