Tobacco Tax Compact Negotiated
A new tobacco tax compact between the Kialegee Tribal Town and the state of Oklahoma is now in effect. Each of the state's 38 federally recognized Indian tribes can negotiate a compact with the state that determines how much of the $1.03-per-pack tax is distributed between the state and the tribe. The Tulsa World reports that Oklahoma will collect 30 percent of all Kialegee compact taxes - or all applicable state taxes - on the sale of any cigarette or other tobacco product that is subject to the compact from Feb. 1 of this year through the end of 2015. That amount increases to 40 percent in 2016, 45 percent in 2017 and 50 percent in 2018. The compact expires at the end of 2018.