Post by Okwes on May 9, 2007 14:11:41 GMT -5
Creeks prepare tobacco proposal
By OMER GILLHAM AND S.E. RUCKMAN World Staff Writers
2/3/2007
www.tulsaworld.com/NewsStory.asp?ID=070203_Ne_A11_Creek30864
<http://www.tulsaworld.com/NewsStory.asp?ID=070203_Ne_A11_Creek30864>
OKMULGEE -- The Creek Nation is preparing to submit its first formal
proposal to help resolve a two-year-old dispute with the state over a
new cigarette compact.
A tobacco compact is an agreement for tribes to make payments to the
state for tobacco sales in lieu of taxes.
Although the proposal appears to show that the tribe is softening its
position, the compact still is not a done deal, said state Treasurer
Scott Meacham.
"I think it is a good sign that the tribe is making its first formal
proposal, and it is a significant move off of what they initially
presented," Meacham said.
"I am encouraged with that, but I believe the governor must review it
before we can go any further."
The Muscogee (Creek) National Council voted Tuesday in an extraordinary
session called by Chief A.D. Ellis to approve a proposed compact with
the state. Ellis signed the compact and is submitting it to the state,
tribal officials said.
Creek House Speaker George Tiger said he is realistic about the
proposal.
"It's a starting point for good-faith negotiations," he said.
"Eventually, we will look at a compact both sides can feel comfortable
with."
The proposal involves the Creek Nation
<http://adserver.tulsaworld.com/?RC=25000181&AI=762&RANDOM=7641125789366\
4> <http://adserver.tulsaworld.com/?SHT=NewsStory_336x280> agreeing
to pay the state 40 cents for each pack of cigarettes, or $4 per carton,
that it sells in tribal stores, according to compact documents.
The Creek's 40-cent proposal compares with a $1.03 excise tax that
nontribal stores must pay per pack.
If accepted by the state, the agreement would give the Creek stores a
$6.30 per carton tax advantage over nontribal stores. That equates to a
near-doubling of the tribe's historical tax advantage over nontribal
stores.
In previous talks with the Creeks, the state has balked at such a tax
advantage.
The tribe will also stipulate that it shall impose a "reasonable tax" of
5 cents per pack that could be raised by the tribe in the future.
According to Creek Nation law, the chief is the primary negotiator on
compacts, but approval must come from the National Council.
Before the new proposal, negotiations between the Creek Nation and the
state stalled when the tribe balked at paying more than 25 cents per
pack of cigarettes.
That amount correlates to the percentage that the tribes has
traditionally paid to the state in connection with an original compact.
Meanwhile, other local tribes -- the Osage and Cherokee nations -- have
been in arbitration with the state over disputes involving their
compacts.
The Creek Nation now has no tobacco compact with the state.
Meacham has said the tribe should be paying the state 77 cents per pack
of cigarettes because the tribe has failed to sign a new compact.
Creek smoke shops have mostly ignored the request and instead purchased
low-tax cigarettes from border stores that are allowed to sell such
cigarettes.
In May, Gov. Brad Henry's office was willing to accept a 66-cent compact
rate that would give the Creeks a $3.70 per carton tax advantage over
nontribal stores.
That proposal failed to move forward with the Creek Nation.
Nontribal stores pay the $1.03 tax per pack in connection with a new
cigarette tax put in place in January 2005.
State and tribal officials have been at odds since voters approved the
tobacco tax.
The tax is designed to raise revenues to support health initiatives
while curbing smoking among Oklahomans.
By OMER GILLHAM AND S.E. RUCKMAN World Staff Writers
2/3/2007
www.tulsaworld.com/NewsStory.asp?ID=070203_Ne_A11_Creek30864
<http://www.tulsaworld.com/NewsStory.asp?ID=070203_Ne_A11_Creek30864>
OKMULGEE -- The Creek Nation is preparing to submit its first formal
proposal to help resolve a two-year-old dispute with the state over a
new cigarette compact.
A tobacco compact is an agreement for tribes to make payments to the
state for tobacco sales in lieu of taxes.
Although the proposal appears to show that the tribe is softening its
position, the compact still is not a done deal, said state Treasurer
Scott Meacham.
"I think it is a good sign that the tribe is making its first formal
proposal, and it is a significant move off of what they initially
presented," Meacham said.
"I am encouraged with that, but I believe the governor must review it
before we can go any further."
The Muscogee (Creek) National Council voted Tuesday in an extraordinary
session called by Chief A.D. Ellis to approve a proposed compact with
the state. Ellis signed the compact and is submitting it to the state,
tribal officials said.
Creek House Speaker George Tiger said he is realistic about the
proposal.
"It's a starting point for good-faith negotiations," he said.
"Eventually, we will look at a compact both sides can feel comfortable
with."
The proposal involves the Creek Nation
<http://adserver.tulsaworld.com/?RC=25000181&AI=762&RANDOM=7641125789366\
4> <http://adserver.tulsaworld.com/?SHT=NewsStory_336x280> agreeing
to pay the state 40 cents for each pack of cigarettes, or $4 per carton,
that it sells in tribal stores, according to compact documents.
The Creek's 40-cent proposal compares with a $1.03 excise tax that
nontribal stores must pay per pack.
If accepted by the state, the agreement would give the Creek stores a
$6.30 per carton tax advantage over nontribal stores. That equates to a
near-doubling of the tribe's historical tax advantage over nontribal
stores.
In previous talks with the Creeks, the state has balked at such a tax
advantage.
The tribe will also stipulate that it shall impose a "reasonable tax" of
5 cents per pack that could be raised by the tribe in the future.
According to Creek Nation law, the chief is the primary negotiator on
compacts, but approval must come from the National Council.
Before the new proposal, negotiations between the Creek Nation and the
state stalled when the tribe balked at paying more than 25 cents per
pack of cigarettes.
That amount correlates to the percentage that the tribes has
traditionally paid to the state in connection with an original compact.
Meanwhile, other local tribes -- the Osage and Cherokee nations -- have
been in arbitration with the state over disputes involving their
compacts.
The Creek Nation now has no tobacco compact with the state.
Meacham has said the tribe should be paying the state 77 cents per pack
of cigarettes because the tribe has failed to sign a new compact.
Creek smoke shops have mostly ignored the request and instead purchased
low-tax cigarettes from border stores that are allowed to sell such
cigarettes.
In May, Gov. Brad Henry's office was willing to accept a 66-cent compact
rate that would give the Creeks a $3.70 per carton tax advantage over
nontribal stores.
That proposal failed to move forward with the Creek Nation.
Nontribal stores pay the $1.03 tax per pack in connection with a new
cigarette tax put in place in January 2005.
State and tribal officials have been at odds since voters approved the
tobacco tax.
The tax is designed to raise revenues to support health initiatives
while curbing smoking among Oklahomans.