Sunday, December 9, 2012
Indian Reservation Cigarette Prices
Can Indian Reservations sell cigarettes for whatever price they want?
if so, why don't they have to comply with state law?
NO
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The escrow statute protects Big Tobacco from competition by forcing the NPMs to increase the price of their cigarettes so that they don't have a cost advantage over the participating manufacturers who make annual MSA payments. ... If the states manage to force Indian manufacturers to pay taxes via tax stamps on their cigarettes, they would have to make escrow payments on all cigarettes sold on Indian reservations or they could not lawfully sell their cigarettes.
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