Cherokee Nation signs tobacco compact
TAHLEQUAH — The Cherokee Nation has agreed to sign a new tobacco compact with the state, essentially eliminating low tax zones for several of the tribe’s stores, but restoring the price advantage traditionally held by tribal retailers over non-tribal retailers.
The Cherokee Nation Tribal Council voted unanimously Monday night to approve the new tobacco compact with the state. The new compact puts forth a flat rate of 67 cents total tax per pack of cigarettes.
The tribe’s previous compact put non-border area smoke shops’ tax rate at 86 cents per-pack, but in border areas taxes ranged between 31 and 6 cents per pack.
The tobacco tax issue has been a point of contention between the state and Oklahoma tribes for years, with both sides claiming the other was acting unfairly.
“It brings to closure the four years of conflict over the existing compact agreement and will conclude the State’s arbitration process,” said Chad Smith, Principal Chief of the Cherokee Nation.
The tribal council also approved an additional motion regarding a rebate of tobacco taxes to tribal smoke shops located in border areas, which had lower tax rates under the tribe’s old compact of the Cherokee Nation.











