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Tribal tobacco retailer shuts down in Cloverdale |
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Written by Administrator
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Friday, 27 August 2010 |
Tribal tobacco retailer shuts down in Cloverdale
Cloverdale shop in tax dispute with state
By CLARK MASON
THE PRESS DEMOCRAT
August 27, 2010
Native Tobacco 101 in Cloverdale, under pressure from state officials for not collecting taxes on its sales, has quietly closed down.
Managers of the tobacco shop on a remnant of the Cloverdale Rancheria claimed they were exempt from state taxes because they sold only cigarettes manufactured on Indian land.
The store along Highway 101 closed two weeks ago after state officials agreed not to pursue legal action against the business -- if it shut down.
"We proposed they would close down if we agreed to say we would never sue them over any tax issues," said Dennis Eckhart, senior assistant attorney general.
Whether the store is permanently closed was in doubt Wednesday after comments made by the attorney representing the tribes that run it.
"There are ongoing negotiations between those tribes and the Attorney General's Office pertaining to the operation of the smoke shop," said Attorney Les Marston of Ukiah. "As part of the negotiations and as a sign of the tribe's good faith, the tribes closed the smoke shop, reserving the right to reopen."
He said the state and tribes have reached a tentative agreement. "We are just trying to work out the definitive language to implement those principles," he said.
He declined to elaborate, saying he didn't want to jeopardize negotiations.
From the outside, the prefabricated building that housed Native Tobacco 101 along a freeway frontage road looks to be out of business.
"The sign is gone and it looks all very closed up," Cloverdale Mayor Carol Russell said Wednesday.
http://www.pressdemocrat.com/article/20100827/NEWS/8271043/1350?Title=Tribal-tobacco-retailer-shuts-down-in-Cloverdale
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