The state of Oklahoma is waiting until May 1 to enforce an emergency tobacco tax rule.

The rule was adopted in February to prevent tobacco stores licensed by tribes from selling cigarettes with cheaper tax stamps. Stores run directly by tribes are not affected.

The state says it is delaying the rule in order to negotiate a potential solution. The Osage Nation is in litigation with the state.

Gov. Brad Henry (D) signed tobacco compacts with several tribes that were meant to avoid tax disputes but wholesale distribution of tobacco products has enabled tribal retailers in northeastern Oklahoma to avoid paying higher state taxes. Rep. Ernest Istook (R) criticized Henry for signing "sweetheart deals."

Get the Story:
State delays tax enforcement (The Oklahoman 4/19)
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Ernest Istook wants to create opportunities in state (The Norman Transcript 4/20)

Relevant Links:
Oklahoma Tax Commission - http://www.oktax.state.ok.us

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