Tax Agency Passes Emergency Smoke-Shop Rule
Posted on: Wednesday, 22 February 2006, 12:00 CST
By Mick Hinton, Tulsa World, Okla.
Feb. 22--OKLAHOMA CITY -- The Oklahoma Tax Commission unanimously approved an emergency rule Tuesday that is intended to stop tribal smoke shops from selling low-tax, border-rate cigarettes in northeastern Oklahoma.
About 10 tribal representatives protested the new rule.
The Osage Nation intends to take its objection to federal court in Tulsa as soon as the governor signs the rule.
"If the governor signs the rule tomorrow, you can be rest assured the Osages will be in court," said Rex Hackler, a tribal spokesman.
Osage Chief Jim Gray said that if yet another rule is passed, "we cannot go another day."
Paul Sund, a spokesman for Gov. Brad Henry, said the governor "agrees with the intent of the rule, but it will have to go through the review process."
Henry is expected to sign the rule later this week.
The rule will require all smoke shops that are licensed through tribes to pay a tobacco tax of 86 cents per pack.
Those who pay the 86 cents up front would receive a rebate of 40 cents per pack, provided that they have a compact with the state.
State officials say the sale of cheap stamps is largely to blame for tobacco tax collections missing projections by about $4 million a month.
Retailer Beverly Roberts of Grove complained that the rule "would absolutely force us to close our doors."
Tony Mastin, director of the Tax Commission's Tax Policy and Research Division, said the rule is part of the agency's "continuing attempt to stop the abuses we've seen" in tobacco tax collections.
The Associated Press contributed to this story.
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Source: Tulsa World
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