Tribal Cigarette Co. Says Treaty Wipes $60M Tax Debt

Law360, New York (November 13, 2013, 4:59 PM EST) -- Native American cigarette producer King Mountain Tobacco Company Inc. told a Washington federal court Tuesday that a $60 million Internal Revenue Service assessment cannot stand, because a 160-year-old treaty preempts collection of federal excise taxes on the company's cigarettes. 

In response to the U.S.' October summary judgment motion, King Mountain claimed the tobacco cultivation and cigarette production performed on Yakama Nation land was exempt from federal excise tax because an 1855 treaty promised economic advantages to the nation in return for the U.S.' gaining title to millions...
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