Post by blackcrowheart on Dec 27, 2005 5:19:39 GMT -5
Cigarettes bought on Rocky Boy's Indian Reservation may soon cost as
much those purchased off the reservation.
The Chippewa Cree tribe is set to begin a cooperative tax agreement with
the state on the taxation of cigarettes and tobacco products, which will
raise the price of a pack of cigarettes by about $1.15. The agreement is
expected to take effect Jan. 1.
Under the agreement, the tribe will enact a tax similar to the state's
rate. The state will collect the tax and give it to the tribe. The state
won't be taxing tribal members.
The new revenue will be used to pay off Rocky Boy's deficit to Contract
Health Services, a program that covers the cost of off-reservation
medical care for tribal members.
Rocky Boy gave control of the program back to the federal government in
July after accumulating a $3.7 million deficit.
The tribe hosted a public meeting Wednesday with the state to discuss
the tobacco tax agreement. The Rocky Boy tribal council met with
representatives from Gov. Brian Schweitzer's office and the Montana
Department of Revenue.
The 10-year agreement provides for collection and disbursement of the
tax to the tribe and enforcement of the agreement.
“Cigarettes will be less than or equal to the outside market,” council
member Brian “Kelly” Eagleman said after the meeting.
Under a previous agreement with the state, the tribe has an allocation
of 18,000 cartons it can buy without paying state tax. Eagleman said the
tribe sold the allocation and kept the revenues.
Deanne Sandholm, of the governor's office of budget and program
planning, said there will be no more allocations with the new agreement.
The tribe raised its tobacco tax from 5 cents to 55 cents in January.
State taxes also rose in January from $1 to $1.70. Under the new
agreement, the tribe's tax will be about equal to that of the state. The
new tribal tax has not yet been set.
The wholesale distributor will pay the tax, which will be collected by
the state and returned to the tribe.
Sandholm said the agreement will give the tribe new, steady revenue and
help keep untaxed cigarettes off the market.
The state has similar agreements with the Blackfeet, Crow, Fort Belknap
and Fort Peck Indian reservations.
Chippewa Cree Development Corp. financial manager Bob Swan said he think
the agreement is a good idea but has concerns as a businessman. He said
he worries the agreement will hurt the bottom line for two businesses he
manages for the tribe, Gramma's Market and Past Time.
Anna Whiting Sorrell, co-chair of the governor's American Indian Nations
Council, said during the meeting that the agreement will add clarity to
taxation issues and provide a steady source of revenue to the Chippewa
Cree tribe.
The revenue will be earmarked to pay off a Contract Health Services
deficit incurred over several years.
Contract Health Services is responsible for administering and paying for
medical services tribal members receive off the reservation when they go
because of an approved referral. CHS is meant only to fund health care
if there is no third-party payer - Medicaid, Medicare or private
insurance.
Tribal council member Jonathan Windy Boy, co-chair of the Rocky Boy
Health Board, said the $3.7 million CHS deficit occurred when the “level
of dollars received (from the federal government) almost flat-lined” as
health care costs increased.
“Costs are increasing and the money hasn't caught up with that yet,”
Windy Boy said after the meeting.
Once the deficit is paid, Windy Boy said, the tribe will hopefully take
back control of the program.
According to the agreement, the state will collect the taxes on all
tobacco or tobacco products sold on the reservation and remit the
revenue to the tribe on a quarterly basis.
much those purchased off the reservation.
The Chippewa Cree tribe is set to begin a cooperative tax agreement with
the state on the taxation of cigarettes and tobacco products, which will
raise the price of a pack of cigarettes by about $1.15. The agreement is
expected to take effect Jan. 1.
Under the agreement, the tribe will enact a tax similar to the state's
rate. The state will collect the tax and give it to the tribe. The state
won't be taxing tribal members.
The new revenue will be used to pay off Rocky Boy's deficit to Contract
Health Services, a program that covers the cost of off-reservation
medical care for tribal members.
Rocky Boy gave control of the program back to the federal government in
July after accumulating a $3.7 million deficit.
The tribe hosted a public meeting Wednesday with the state to discuss
the tobacco tax agreement. The Rocky Boy tribal council met with
representatives from Gov. Brian Schweitzer's office and the Montana
Department of Revenue.
The 10-year agreement provides for collection and disbursement of the
tax to the tribe and enforcement of the agreement.
“Cigarettes will be less than or equal to the outside market,” council
member Brian “Kelly” Eagleman said after the meeting.
Under a previous agreement with the state, the tribe has an allocation
of 18,000 cartons it can buy without paying state tax. Eagleman said the
tribe sold the allocation and kept the revenues.
Deanne Sandholm, of the governor's office of budget and program
planning, said there will be no more allocations with the new agreement.
The tribe raised its tobacco tax from 5 cents to 55 cents in January.
State taxes also rose in January from $1 to $1.70. Under the new
agreement, the tribe's tax will be about equal to that of the state. The
new tribal tax has not yet been set.
The wholesale distributor will pay the tax, which will be collected by
the state and returned to the tribe.
Sandholm said the agreement will give the tribe new, steady revenue and
help keep untaxed cigarettes off the market.
The state has similar agreements with the Blackfeet, Crow, Fort Belknap
and Fort Peck Indian reservations.
Chippewa Cree Development Corp. financial manager Bob Swan said he think
the agreement is a good idea but has concerns as a businessman. He said
he worries the agreement will hurt the bottom line for two businesses he
manages for the tribe, Gramma's Market and Past Time.
Anna Whiting Sorrell, co-chair of the governor's American Indian Nations
Council, said during the meeting that the agreement will add clarity to
taxation issues and provide a steady source of revenue to the Chippewa
Cree tribe.
The revenue will be earmarked to pay off a Contract Health Services
deficit incurred over several years.
Contract Health Services is responsible for administering and paying for
medical services tribal members receive off the reservation when they go
because of an approved referral. CHS is meant only to fund health care
if there is no third-party payer - Medicaid, Medicare or private
insurance.
Tribal council member Jonathan Windy Boy, co-chair of the Rocky Boy
Health Board, said the $3.7 million CHS deficit occurred when the “level
of dollars received (from the federal government) almost flat-lined” as
health care costs increased.
“Costs are increasing and the money hasn't caught up with that yet,”
Windy Boy said after the meeting.
Once the deficit is paid, Windy Boy said, the tribe will hopefully take
back control of the program.
According to the agreement, the state will collect the taxes on all
tobacco or tobacco products sold on the reservation and remit the
revenue to the tribe on a quarterly basis.