State to terminate Yakama cigarette compact

The state of Washington said on Thursday it would terminate its tobacco compact with the Yakama Nation.

The state Department of Revenue says the tribe hasn't lived up to its end of the agreement. At issue are cigarettes being sold with untraceable tax stamps.

Under the compact, the tribe keeps all the revenues from tobacco taxes. The tax rate was to be the same as the state's in 2008.

Without an agreement, the tribe has to collect taxes on the sale of tobacco to non-Indians, and remit those taxes to the state.

Get the Story:
Tribe faces deadline on cigarette tax (The Yakima Herald-Republic 2/9)
State to terminate cigarette-tax deal with Yakamas (AP 2/9)

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