Oklahoma Tribal Cigarette Sales Hit Decade Low

Sales of cigarettes purchased at Oklahoma Indian reservations are at a 10-year low and continue to drop.

August 21, 2012

TULSA, OK - Cigarette sales at Oklahoma tribal shops are declining and have reached a 10-year low, Tulsa World reports.

Whereas in 2009, tribal smoke shops controlled roughly 50% of the state??s retail cigarette market, in 2010 and 2011, that figure had dropped to 33% and is on pace to fall to less than 32% this year, according to state records.

The decline has been attributed to sales at border stores as well as a change in state law that took effect January 1, 2010, which increased the amount of stamps sold by non-compacting tribal smoke shops from 78 cents per pack to $1.03 per pack ?" the same rate charged by non-tribal retail stores.

Additionally, State Tax Commission spokesperson Paula Ross said many tribal tobacco compacts expired in July 2008 and were replaced with language that affects border store sales. As a result, sales at tribal border stores dropped 82% from 2008 through 2010.

Border tribal stores sell cigarettes with either 6-cent or 25-cent tax stamps, allowing them to compete with border states with lower tobacco taxes.

Despite the reported sales decline, a QuikTrip spokesperson expressed doubt that non-tribal stores now control more than two-thirds of Oklahoma??s cigarette sales ?" at least in northeast Oklahoma.

"It's certainly not reflected in QuikTrip sales," said company spokesperson Mike Thornbrugh, conceding any shift in market share was due to the 6-cent tax stamp no longer "being abused."

A Muskogee Creek Nation smoke shop owner said his business has declined because the tribe lacks a compact with the state. As a result, Creek Nation smoke shops must sell cigarettes bearing a $1.03 tax stamp.

"All we're doing is giving the illusion that we are a smoke shop," said the tribal tobacco store owner.

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