Tobacco tax woes

May 01, 2008 06:59 pm

— If the old cigarette compacts with Native American tribes worked so well, why were they abandoned?
State Treasurer Scott Meacham has been criticized because the state has lost money on cigarette tax collections for the past four years. Four years ago, Meacham headed renegotiations with the tribes on cigarette taxes.
Meacham said Tuesday that some people have conducted a “malicious, hateful, untruthful attack” against him because of the problems the new compacts have posed.
The negotiations certainly have not been easy, and the compacts have been complicated by a series of events beginning with a vote by Oklahomans to increase the cigarette tax to increase funding of health programs and the increasing economic power of the tribes.
The situation is complicated by the varying rate given to certain tribes, and some smoke shops have taken advantage of the loopholes in the compact.
Now, the Cherokee Nation is complaining that another nation has a better cigarette tax deal than it has with the state, and the state has promised the Cherokees a “most-favored nation” status.
The nations are going to be reluctant to give up the compacts they have with the state, and while some criticism may be unfair, Meacham has been Gov. Brad Henry’s point man in most dealings with Native American tribes.
Now, Meacham observes that the old compacts, which had a single tax rate for all areas of Oklahoma, worked well and posed few problems.
Again, if the old compacts worked so well ...

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