Two tribes have agreed to new tobacco compacts with Oklahoma

Tuesday, September 30th 2003, 12:00 am
By: News On 6

(Oklahoma City-AP) -- Governor Brad Henry says two of Oklahoma's largest Indian tribes have agreed to new tobacco compacts.

The Choctaw Nation and Chickasaw Nation reached the agreements a day before compacts expire for a dozen Indian tribes.

Henry says additional tribes are expected to sign new revenue agreements with the state soon.

The new compacts are almost identical to expiring agreements.

One difference involves the tax rate applied to Indian tobacco sales if the state ever raises its cigarette tax.

As with the old compacts, the tribes will continue to pay the state 25 percent of Oklahoma tobacco tax on sales to non-tribal members. If a cigarette tax increase is approved, the tribes will pay the state 50 percent of the increased amount.

Protections are in place for tribal tobacco outlets operating near states with a lower cigarette tax or near outlets from tribes operating under old compact provisions.