Tobacco woes hit Diné cabinet secretary
By Bill Donovan
Special to the Times
WINDOW ROCK, July 14, 2011
The smoking legislation being debated in the Navajo Nation Council wasn't the only issue in the news this week involving Navajos and smoking.
The Associated Press quotes the New Mexico Attorney General's Office in Santa Fe as saying a store owned by Secretary of Indian Affairs Arthur Allison, a Navajo, is selling cigarettes that are not approved by New Mexico and is not collecting the state tax on them.
The AG's office says the cigarette sales at the Star Ranch Store, located on Navajo land near Farmington, violate state law and that Allison is "aiding and abetting the sale of contraband."
An AP reporter said that he went into the store and bought a pack of Seneca brand cigarettes that did not have the $1.66-a-pack state tax stamp.
According to the attorney general, Seneca is a Canadian-based brand not approved for sale in New Mexico.
New Mexico Gov. Susana Martinez has asked Allison to not sell cigarettes without a state tax stamp, according to a spokesman.
Allison said he turned over operation of the store to his son when he was selected for his current cabinet position, and has not received any compensation since taking the state job. He said is plans to give the business to his son and would pass on the governor's concerns.
The issue here is not only about requiring a state sales tax on sales to non-Indians, but also whether the state approved the brand sold.
This has been an ongoing debate between Indian tribes - mostly the pueblos - for years over the sale of cigarettes in reservation stores and whether they have to include state sales taxes.
The state has taken a strong stance that it does, since allowing reservation stores to sell cigarettes without the state sales tax would cost the state tens of millions of dollars a year in tax revenue and would give reservation stores a huge advantage over non-reservation stores.
As a compromise, the state agreed in 2010 to give reservation retailers permission to charge 91 cents less for tax than non-reservation dealers if the tribe itself charged at least 75 cents a pack in tribal taxes.
The Navajos and Zunis, however, have not agreed to go along with that arrangement, which means most retailers on those reservations still do not charge any state tax on cigarette sales.