Jump to full article: Syracuse (NY) Post-Standard, 2009-09-17
Author: Glenn Coin / The Post-Standard
Intro: The Oneida Indian Nation, which sells $34 million of untaxed cigarettes a year, has expanded its tobacco operations into making its own cigarettes.
The nation last fall bought a cigarette manufacturing plant in Erie County for $6.6 million, according to documents the nation provided to the federal government. The nation plans to release the news of the purchase today.
Sovereign Tobacco produces two discount cigarette brands that sell for $30 a carton at the Oneida nation's SavOn stores and as little as $14.50 per carton online. A carton of taxed, name-brand cigarettes in non-Indian outlets can cost well over $60.
The nation runs Turning Stone Resort & Casino, a dozen SavOn stations, a gaming software company and five golf courses.
Niagara's Bob Hilburger, who runs the nation subsidiary that bought the plant, said the nation wants to diversify.
"The Oneidas from time to time would look to grow beyond the gaming business, and they use me to help them," . . .
By producing their own cigarettes, Calvin said, tribes could cut out the wholesalers who are licensed by the state.
"It may well be that the tribes are thinking that it would be more difficult for the state to enforce tax collection on those Native American brands," he said.
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