OKLAHOMA CITY (AP) - The state Supreme Court has dismissed an injunction had barred state collection of cigarette taxes from tobacco stores licensed by the Osage Nation.

Justices last week ruled that a lower court didn’t have jurisdiction to stop the Oklahoma Tax Commission from collecting 86 cents per pack from the tribe’s licensed tobacco retailers.

The justices noted that a tobacco compact between the parties required any disputes be resolved through binding arbitration.

The tribe avoided paying the rate because of an exception in the compact that allowed it to pay the amount paid by the nearby Pawnee Tribe, 58 cents.

When the Pawnees terminated their compact in 2008, the Osages’ tax reverted to 86 cents, sparking a lawsuit by Osage-licensed retailer, Feather Smoke Shops.

Commission spokeswoman Paula Ross says the agency considers the matter closed.