Business | Law

Muscogee Nation reaches tobacco tax compact with governor

The Muscogee Nation signed a tobacco compact with Oklahoma Gov. Mary Fallin (R) on Friday.

The tribe was the last major holdout to a compact. The deal ends years of litigation over taxation of tobacco products sold by tribal retailers.

“The tobacco compact will resolve the outstanding litigation and disputes between the Nation and the state of Oklahoma and will provide a way for our community smoke shops to sustain themselves in a struggling economy. I am pleased that we can finally put this issue to rest and our Nation can focus on our citizens and other issues of importance to our people," Chief George Tiger said in a press release.

The tribe agreed to pay $11.5 million over five years to resolve prior taxation issues. Going forward, the tribe will collect a tax of at least $10.30 on a 10-pack carton of cigarettes and share 50 percent with the state.

Get the Story:
State, Muscogee (Creek) Nation sign tobacco compact (The Daily Ardmoreite 8/28)
Creek chief, Fallin sign compact governing sale of tobacco on tribal land (The Tulsa World 8/25)
Tobacco compact agreement reached (The Muskogee Phoenix 8/24)

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