Cherokee Nation News

Why State Tobacco And Fuel Compacts Are Unfair To Tribes


Every year tribal governments lose millions of dollars in tax revenue to states. Tribal members shop at non-Indian owned businesses, yet those businesses are not held to the same standard as tribal business who must collect non-Indian taxes. By law and treaties, tribal governments are superior to the governments of the states.

If the tribes must collect taxes of non-Indians shopping or living within their jurisdiction, then the states should be required to do as well.

These compacts should not be so one-sided. If the states do not pay the millions annually lost in taxes from tribal members shopping at off reservation businesses, then why should tribes pay them? This compacting business is just another way for the state to rob tribes of their sovereignty, yet One Nation and the states claim they want a level playing field.

When two groups work together that is called a compact. When it is only one group benefiting from the compact and only one group paying it is called unfair.

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