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Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - April 23, 2003
Contact:  Governor's Communications Office, 360-902-4136

Gov. Locke Signs Cigarette Tax Agreement with Chehalis Tribe

OLYMPIA - Gov. Gary Locke today signed an agreement with the Chehalis Tribe ending the state-imposed cigarette tax and sales taxes on cigarettes and allowing the tribe to impose its own tax on cigarette sales at tribal stores.

David Burnett, chairman of the Confederated Tribes of Chehalis Reservation joined the governor in signing the contract.

“With this agreement, the state steps away from its taxing authority, making room for the Chehalis Tribe to impose its own tax,” Locke said. “This tax will provide additional tribal revenue for essential government functions, including education, law enforcement and human services.”

The agreement legalizes non-Indian cigarette purchases from smokeshops located on the reservation, as long as the tribe imposes its own tax equal to the state’s combined cigarette and sales tax. The tribe has three years to reach the combined state tax rate.

The contract is the sixth to be signed since the 2001 Legislature authorized the governor to negotiate such agreements. Locke has signed contracts with the Squaxin Island, Upper Skagit, Tulalip, Jamestown S'Kllallam and Nooksack tribes.



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