Oklahoma tribes see boost in tobacco sales on border

Oklahoma tribes with tobacco shops near the Texas border saw a big boost in sales after the Lone Star State raised the tax on cigarettes.

Texas imposes a $1.41 tax per pack, an increase of $1. The hike sent smokers to stores owned by the Choctaw Nation, where the tax is 86 cents per pack.

The tribe signed a compact with the state to share revenues. The compact calls for a tax increase if border states increase their taxes.

The state expects to see $30.8 million this fiscal year in tribal tobacco revenues. Next fiscal year, revenues are expected to grow to $35.4 million, largely as a result of border sale increases.

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Texas Cigarette Tax Helps Oklahoma Sales (AP 2/13)

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