{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-349.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-349.1","heading":"Tobacco taxes on noncompacting tribes or nations -","body":"Conditions for exception - Native American tax free stamps.\n\nA. Sales of cigarettes and other tobacco products by retailers\n\nlicensed by noncompacting federally recognized Indian tribes or\n\nnations (hereinafter \"tribe or nation\") shall be subject to the\n\ncigarette excise tax imposed by Section 302 et seq. of this title\n\nand the excise tax on other tobacco products imposed by Section 402\n\net seq. of this title.\n\nB. 1. Members of noncompacting federally recognized Indian\n\ntribes or nations may purchase cigarettes and other tobacco\n\nproducts, without payment of Oklahoma cigarette excise tax or\n\nOklahoma other tobacco products excise tax, subject to the following\n\nconditions:\n\na. the member of the noncompacting federally recognized\n\nIndian tribe (hereinafter \"purchaser\") is purchasing\n\nfor his or her personal use, and not for sale,\n\ntransfer or other disposition to another person or\n\nentity,\n\nb. the purchaser is purchasing from a retailer licensed\n\nby the federally recognized Indian tribe or nation of\n\nwhich the purchaser is a member,\n\nc. the licensed retailer of purchaser's federally\n\nrecognized Indian tribe or nation is located upon\n\n\"Indian country\" of that licensing tribe or nation, as\n\nthat term is defined by 18 USC Section 1151(a) and\n\nparagraph 3 of Section 348 of this title.\n\n2. Members of noncompacting federally recognized tribes or\n\nnations are not entitled to purchase cigarettes or other tobacco\n\nproducts, free of Oklahoma excise tax, from retailers licensed by\n\nany other tribe or nation, compacting or not, but have a right to\n\npurchase cigarettes and other tobacco products, free of Oklahoma\n\nexcise tax, upon the \"Indian country\" of the tribe or nation of\n\nwhich the purchaser is a member, per the United States Supreme Court\n\ndecision \"Oklahoma Tax Commission v. Citizen Band Potawatomi Indian\n\nTribe of Oklahoma\", 498 U.S. 505 (1991).\n\nC. Cigarettes held for sale to members of a noncompacting tribe\n\nor nation by licensed retailers of that tribe or nation, which are\n\nlocated on the \"Indian country\" of that tribe or nation, as defined\n\nby 18 USC Section 1151(a) and paragraph 3 of Section 348 of this\n\ntitle, must bear a stamp issued by the Oklahoma Tax Commission\n\nevidencing that cigarettes are purchased free of Oklahoma cigarette\n\nexcise tax. The following procedures shall apply to said stamps\n\n(hereafter, \"Native American tax free stamps\"):\n\n1. The probable demand for Native American tax free stamps for\n\neach noncompacting tribe or nation shall be determined by the Tax\n\nCommission by ascertaining the total membership in Oklahoma of the\n\ntribe or nation from the Bureau of Indian Affairs or other reliable\n\nsource of public information regarding such membership, and\n\nmultiplying that number by the percentage of smokers in Oklahoma or\n\nin the United States, whichever is greater, based on the most recent\n\ndata available from the State Department of Health and/or other\n\nreliable source of public information. The product of that\n\ncalculation shall be multiplied by the average yearly consumption of\n\ncigarettes by smokers in Oklahoma or the United States, whichever is\n\ngreater, based on the most recent data available from the State\n\nDepartment of Health and/or other reliable source of public\n\ninformation. The resulting number shall be deemed to constitute the\n\nprobable demand for Native American tax free stamps of such\n\nnoncompacting tribe or nation for a calendar year.\n\n2. A preliminary determination of probable demand shall be\n\nfurnished to the governing authorities of each noncompacting tribe\n\nor nation which may submit, for consideration by the Tax Commission,\n\nany verifiable information in its possession regarding such probable\n\ndemand, including, but not limited to, a verifiable record of\n\nprevious sales to tribal members or other statistical evidence.\near.\n\n2. A preliminary determination of probable demand shall be\n\nfurnished to the governing authorities of each noncompacting tribe\n\nor nation which may submit, for consideration by the Tax Commission,\n\nany verifiable information in its possession regarding such probable\n\ndemand, including, but not limited to, a verifiable record of\n\nprevious sales to tribal members or other statistical evidence.\n\n3. After consideration of all verifiable information furnished\n\nby a noncompacting tribe or nation pursuant to paragraph 2 of this\n\nsubsection, the Tax Commission shall make its final determination of\n\nprobable demand, and furnish such determination to the subject\n\nnoncompacting tribe or nation and to all Oklahoma-licensed cigarette\n\nwholesalers.\n\n4. Each calendar year, the Tax Commission shall establish, as\n\nto any and all Oklahoma-licensed cigarette wholesalers supplying\n\ncigarettes to tribally licensed or owned retailers of each\n\nnoncompacting tribe or nation an allocation of the probable demand\n\nfor such tribe or nation, based upon each wholesaler's previous\n\nyear's reported sales of cigarettes to the tribally licensed or\n\nowned retailers of such tribe or nation. In making such allocation,\n\nthe Tax Commission shall consider such other verifiable information\n\nas may be submitted by a licensed wholesaler or such tribe or\n\nnation. Upon reaching a final determination of allocation, the Tax\n\nCommission shall advise the affected wholesaler and the tribe or\n\nnation.\n\n5. Oklahoma-licensed wholesalers may request and receive from\n\nthe Tax Commission, at the beginning of each quarter of the year,\n\ntheir allocated share of Native American tax free stamps for the\n\ntribally licensed or owned retailers of each noncompacting tribe or\n\nnation. Once a wholesaler has received its allocated share of\n\nNative American tax free stamps for the tribally licensed or owned\n\nretailers of a noncompacting tribe or nation for the quarter, that\n\nwholesaler may not receive any further Native American tax free\n\nstamps for tribally licensed or owned retailers of that tribe or\n\nnation during the quarter, absent good cause shown by verifiable\n\ninformation submitted by the wholesaler and/or that tribe or nation,\n\nwhich shall be considered and determined by the Tax Commission on a\n\ncase-by-case basis.\n\n6. The Tax Commission is empowered and authorized to promulgate\n\nsuch rules and regulations as, in its discretion, shall be deemed\n\nnecessary to implement and enforce the provisions of this section.\n\n7. The sale of cigarettes bearing the Native American tax-free\n\nstamp to a nonmember of the tribe or nation which licensed the\n\ntribally owned or licensed retailer shall, in accordance with the\n\nUnited States Supreme Court decision \"Oklahoma Tax Commission v.\n\nCitizen Band Potawatomi Indian Tribe of Oklahoma\", 498 U.S. 505\nthis section.\n\n7. The sale of cigarettes bearing the Native American tax-free\n\nstamp to a nonmember of the tribe or nation which licensed the\n\ntribally owned or licensed retailer shall, in accordance with the\n\nUnited States Supreme Court decision \"Oklahoma Tax Commission v.\n\nCitizen Band Potawatomi Indian Tribe of Oklahoma\", 498 U.S. 505\n\n(1991), obligate that tribal retailer for payment of the applicable\n\nOklahoma cigarette excise tax, together with the costs and attorney\n\nfees associated with any civil action brought to collect the unpaid\n\nOklahoma cigarette excise tax. Such actions may be instituted in\n\nthe district court in and for the county in which the tribal\n\nretailer is located.\n\nD. The Oklahoma excise tax on all tobacco products other than\n\ncigarettes (hereafter \"other tobacco products\") held for sale by\n\nOklahoma-licensed wholesalers shall be paid by the wholesaler and\n\nstamps affixed thereto by the wholesaler pursuant to Section 403 of\n\nthis title, including those other tobacco products which may be\n\npurchased by members of noncompacting tribes and nations on the\n\n\"Indian country\" of such tribe or nation from a retailer licensed or\n\nowned by such tribe or nation. The following procedures shall apply\n\nto the tax-free sale of other tobacco products:\n\n1. The probable demand for the tax-free consumption of other\n\ntobacco products by members of each noncompacting tribe or nation\n\nshall be determined by the Tax Commission by ascertaining the total\n\nmembership in Oklahoma of the tribe or nation from the Bureau of\n\nIndian Affairs or other reliable source of public information\n\nregarding such membership, and multiplying that number by the\n\npercentage of users of such other tobacco products in Oklahoma or\n\nthe United States, whichever is greater, based on the most recent\n\ndata available from the State Department of Health and/or other\n\nreliable source of public information. The product of that\n\ncalculation shall be multiplied by the average yearly consumption of\n\nusers of such other tobacco products in Oklahoma or the United\n\nStates, whichever is greater, based on the most recent data\n\navailable from the State Department of Health and/or other reliable\n\nsource of public information. The resulting number shall be deemed\n\nto constitute the probable demand for the tax-free consumption of\n\nother tobacco products by members of such noncompacting tribes or\n\nnations for a calendar year.\n\n2. A preliminary determination of probable demand shall be\n\nfurnished to the governing authorities of each noncompacting tribe\n\nor nation, which may submit, for consideration by the Tax\n\nCommission, any verifiable information in its possession regarding\n\nsuch probable demand, including, but not limited to, a verifiable\n\nrecord of previous sales to tribal members or other statistical\n\nevidence.\n\n3. After consideration of all verifiable information furnished\n\nby a noncompacting tribe or nation pursuant to paragraph 2 of this\n\nsubsection, the Tax Commission shall make its final determination of\n\nprobable demand and furnish such determination to the subject\n\nnoncompacting tribe or nation and to all Oklahoma-licensed other\n\ntobacco product wholesalers.\n\n4. Each calendar year, the Tax Commission shall establish, as\n\nto any and all Oklahoma-licensed other tobacco product wholesalers\n\nsupplying other tobacco products to the tribally licensed or owned\n\nretailers of each noncompacting tribe or nation an allocation of the\n\nprobable demand for such tribe or nation, based upon each\n\nwholesaler's previous year's reported sales of other tobacco\n\nproducts to the tribally licensed or owned retailers of such tribe\n\nor nation. In making such allocation, the Tax Commission shall\n\nconsider such other verifiable information as may be submitted by a\n\nlicensed wholesaler or such tribe or nation. Upon reaching a final\nion of the\n\nprobable demand for such tribe or nation, based upon each\n\nwholesaler's previous year's reported sales of other tobacco\n\nproducts to the tribally licensed or owned retailers of such tribe\n\nor nation. In making such allocation, the Tax Commission shall\n\nconsider such other verifiable information as may be submitted by a\n\nlicensed wholesaler or such tribe or nation. Upon reaching a final\n\ndetermination of allocation, the Tax Commission shall advise the\n\naffected wholesaler and the tribe or nation.\n\n5. Oklahoma-licensed wholesalers may request and receive from\n\nthe Tax Commission, on the 30th of each month, a refund and/or\n\ncredit for the previous month's tax-free sales of other tobacco\n\nproducts, equal to the lesser of: one twelfth (1/12) of their\n\nallocated share of tax-free sales of other tobacco products to the\n\ntribally licensed or owned retailers of each noncompacting tribe or\n\nnation or verifiable tax-free sales to the licensed or owned tribal\n\nretailers of such tribe or nation. Once a wholesaler has received\n\nsuch refund and/or credit for a previous month's tax-free sales to\n\nthe tribally licensed or owned retailers of each noncompacting tribe\n\nor nation, that wholesaler may not receive any further refund and/or\n\ncredit for said previous month, absent good cause shown by\n\nverifiable information submitted by the wholesaler and/or the\n\nnoncompacting tribe or nation, which shall be considered and\n\ndetermined by the Tax Commission on a case-by-case basis.\n\n6. The Tax Commission is empowered and authorized to promulgate\n\nsuch rules and regulations as, in its discretion, shall be deemed\n\nnecessary to implement and enforce the provisions of this section.\n\n7. The tax-free sale of other tobacco products to a nonmember\n\nof the noncompacting tribe or nation which licenses the tribally\n\nowned or licensed retailer shall, in accordance with the United\n\nStates Supreme Court decision \"Oklahoma Tax Commission v. Citizen\n\nPotawatomi Indian Tribe of Oklahoma\", 498 U.S. 505 (1991), obligate\n\nthat tribal retailer for payment of the applicable Oklahoma other\n\ntobacco product excise tax, together with the costs and attorney\n\nfees associated with any civil action brought to collect the unpaid\n\nOklahoma other tobacco product excise tax. Such actions may be\n\ninstituted in the district court in and for the county in which the\n\ntribal retailer is located.\n\nE. The provisions of this section are intended to, and shall be\n\nconstrued to apply only to, sales of cigarettes and other tobacco\n\nproducts on the \"Indian country\" of noncompacting federally\n\nrecognized Indian tribes or nations to the members of such tribes or\n\nnations. In the event that a noncompacting tribe or nation enters\n\ninto an agreement with the State of Oklahoma, pursuant to Section\n\n346 of this title, the terms of such compact shall take precedence\n\nover the provisions of this section, which shall have no application\n\nto any tribe or nation, while any compact between the State of\n\nOklahoma and that tribe or nation is in force and effect.\n\nF. All cigarettes which are sold or held for sale at tribally\n\nowned or licensed stores shall have affixed thereto a stamp or\n\nstamps evidencing payment or nonpayment of the Oklahoma cigarette\n\nexcise tax, as required by the provisions in this section.\n\nG. It shall be unlawful for any person knowingly to ship,\n\ntransport, receive, possess, sell, distribute or purchase contraband\n\ncigarettes. Any person who engages in shipping, transporting,\n\nreceiving, possessing, selling, distributing or purchasing\n\ncontraband cigarettes shall, upon conviction, be guilty of a\n\nmisdemeanor punishable by a fine of not more than One Thousand\n\nDollars ($1,000.00). Any person convicted of a second or subsequent\n\nviolation hereof shall be guilty of a Class D3 felony offense and\n\nshall be punished by a fine of not more than Five Thousand Dollars\nnsporting,\n\nreceiving, possessing, selling, distributing or purchasing\n\ncontraband cigarettes shall, upon conviction, be guilty of a\n\nmisdemeanor punishable by a fine of not more than One Thousand\n\nDollars ($1,000.00). Any person convicted of a second or subsequent\n\nviolation hereof shall be guilty of a Class D3 felony offense and\n\nshall be punished by a fine of not more than Five Thousand Dollars\n\n($5,000.00), by a term of imprisonment as provided for in\n\nsubsections B through F of Section 20P of Title 21 of the Oklahoma\n\nStatutes, or by both such fine and imprisonment.\n\nH. Any person who knowingly engages in shipping, transporting,\n\nreceiving, processing, selling, distributing or purchasing\n\ncontraband cigarettes shall be subject to the forfeiture of property\n\nas is provided by Section 305 of this title and assessment of\n\npenalty as provided thereby and assessment for any delinquent taxes\n\nfound to be owing.\n\nI. Pursuant to 25 C.F.R., Section 140.17, no trader shall sell\n\ntobacco, cigars or cigarettes to any Indian or other person under\n\neighteen (18) years of age.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"60d1e773fd88fca07b7eea8d07a081b89b86a2b36c9b2f38a8c74bf2ec77daac","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-348","next":"us-ok/okla.-stat.-tit.-68-68-350"},"notice":"GroundRules: Original legal text. Not legal advice."}