Tribe does not condone selling cigarettes tax-free

The Agua Caliente Band of Cahuilla Indians feels obliged to clarify the story about the 7 Leaf Trading Post selling Native American cigarettes on reservation land in Cathedral City.

The article implies, whether intended or not, that this business is in partnership with the Agua Caliente Tribe or that it condones 7 Leaf’s position that all sales of such products are exempt from applicable taxes. Neither is correct.

Although the shop operates on land leased from a tribal member, the tribe does not have any business relationship with this corporation.

Further, the tribe does not share 7 Leaf’s opinion that sales conducted on the reservation may be sold tax- free. Depending on the circumstances, sales of Marlboro tobacco products on the reservation, even by the tribe, may be subject to state sales tax. Tribal law prohibits the sale of cigarettes on the reservation by tribal members and non-members alike unless sold in compliance with California Cigarette Tax Law.

If the sales made by 7 Leaf Trading Post or any other business located on the Reservation are taxable, the Tribe expects compliance with laws regarding the collection and remittance of sales taxes as this Tribe does not condone tax evasion.


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