The Oneida Nation of New York purchased a cigarette manufacturing plant last year for $6.6 million, The Syracuse Post-Standard reports.

The tribe bought Sovereign Tobacco in October 2008, two months after the New York Legislature passed a law that purports to impose the state's tobacco tax on cigarettes sold on reservations. By operating its own manufacturing company, the tribe could avoid legal issues surrounding the tax.

Sovereign Tobacco produces two cigarette brands that are sold at tribal stores. The company's revenues range between $5 million to $10 million a year.

"The Oneidas from time to time would look to grow beyond the gaming business, and they use me to help them," Bob Hilburger, who runs the plan, told the paper.

Get the Story:
Oneida Nation, banking on tax-exempt status, buys cigarette factory (The Syracuse Post-Standard 9/17)