Tobacco Co. Hit With Possible $60M Excise Tax Bill

Law360, New York (January 27, 2014, 5:21 PM EST) -- Native American cigarette producer King Mountain Tobacco Co. Inc. was slapped with a possible $60 million Internal Revenue Service tax assessment Friday, after a district court in Washington ruled federal tobacco excise tax laws trump a 160-year-old treaty with the nation.

Rosanna M. Peterson, chief judge of the U.S. District Court for the Eastern District of Washington, said federal excise tax laws apply to all tobacco products manufactured in the country, and the tribe is no exception — while the government may not tax the growing...
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