Thursday, August 26, 2010

Oneida Nation Moving Cigarette Manufacturing Operations

The Oneida Indian Nation is moving its cigarette manufacturing plant from Buffalo to Oneida, N.Y., according to a press release issued by the tribe on Aug. 25.

In addition to creating 15 jobs in central New York, the relocation will ensure that customers of the tribe’s enterprises can still buy Oneida Indian Nation-manufactured cigarettes free of New York State taxes, the release said.

“By moving the plant to the Oneida homelands, the Nation is availing itself of a long-settled law that recognizes the right of Indian tribes to sell products they manufacture on their own reservations without interference from state tax laws. When an Indian nation manufactures its own products on its reservation, and sells those products on its reservation, federal law preempts state efforts to tax those products,” the tribe stated in the release.

The tribe purchased Sovereign Tobacco, its tobacco company, about two years ago. The cigarettes manufactured in the Oneida plant are the Niagara and Bishop brands, which are sold at the tribe's chain of SavOn stores in Oneida and Madison counties and at select retail shops at its Turning Stone Resort and Casino state tax-free.

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