Table 1

Description of select states’ laws regulating cigarette sales on tribal reservation land—USA, 2015

Type of lawDescription
Allotment of tax-free tribal tobaccoState limits the amount of tax-free tobacco products sold to tribes using a quota or allotment system, typically calculated on tribal population and national consumption figures. This also includes the use of a coupon or voucher system, where tribes provide vouchers to distributors/wholesalers in exchange for tax-free cigarettes, and the state refunds wholesalers for taxes paid on cigarettes purchased with vouchers.
Codified lawsState laws addressing tobacco taxation that, due to tribal sovereignty, generally only dictate behaviour off reservation. These laws include mechanisms such as tax stamps, and can apply to non-tribal consumers making tobacco purchases on tribal lands, or off-reservation tribal activity. Codified laws are those that have been formally adopted by a state legislature (statutory law) or executive branch agency (administrative law or rules or regulations).
Compact formationState addresses the formation of intergovernmental agreements between state and tribe(s), including general agreements that do not pertain specifically to tobacco products. Compacts function as contracts between governments, and allow a state more flexibility when enforcing its tax laws on non-members making purchases on tribal lands. The existence of codified compact formation guidance does not necessarily indicate a state's actual and current use of intergovernmental agreements.
On-reservation tax stamp usage addressedState addresses the use of tobacco excise tax stamps for products sold on reservation, including those states that explicitly prohibit stamping. These laws also dictate which products sold on reservation (if any) require tax stamps.
Products for which tribe prepays state excise taxState requires tribes to prepay excise tax on cigarettes, typically refunding tribes for cigarettes purchased by tax-exempt consumers. This includes laws specifying which cigarette products, if any, require prepayment.