Oklahoma, Choctaw Nation sign latest tribal compact: What to know about the deal

The Choctaw Nation and the state of Oklahoma have signed on to a 10-year deal to share tax revenue generated from tobacco products sold on tribal land.
The Choctaw Nation and the state of Oklahoma have signed on to a 10-year deal to share tax revenue generated from tobacco products sold on tribal land.
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Oklahoma’s second-largest tribe has worked out a tobacco tax-sharing agreement with the state.

The 10-year compact became public Monday after Choctaw Nation Chief Gary Batton and Oklahoma Gov. Kevin Stitt both signed on. The deal mirrors recent agreements between the governor’s office and other tribal nations, with the state and tribe agreeing to equally divide the tax money generated from tobacco products sold on tribal lands.

Compacts — and the power to negotiate them — have been at the center of a yearlong controversy involving the governor, the Legislature and tribal nations. Stitt has made some progress in negotiations with tribal leaders since the start of the year. He’s now signed tobacco tax-sharing agreements with nine tribal nations, about one-quarter of the federally recognized tribes based in Oklahoma.

Before signing on to any deals, the governor had insisted on limiting the agreements to specific types of tribal land, not entire tribal reservations recognized as a result of a landmark 2020 Supreme Court ruling. The new compacts all make the land distinction clear.

More: Why the future of Oklahoma's car tag compact with the Cherokee Nation is in dispute

On the flip side, the top priority for many tribal leaders was long-term stability, which they also gained through the new compact. The state’s agreement with the Choctaw Nation, for instance, will last through 2034 and could extend even longer if neither party wants to drop out.

“Equitable, mutually beneficial agreements such as this compact are good for our tribal members, our communities and all Oklahomans,” Batton wrote in a statement. “This compact provides long-term stability and valuable revenue for both the state and for the Choctaw Nation.”

A spokesperson for Stitt did not immediately respond to questions about the new compact.

A history of tension, legal battles over Oklahoma tribal compacts

Batton noted in his statement that the deal “demonstrates how much good can be accomplished when parties come together in the spirit of mutual respect and cooperation.”

His remarks are an apparent reference to the friction that usually exists between the governor’s office and tribal nations, stemming from disagreements over everything from gaming to hunting.

State lawmakers waded into the dispute over compacts last year after Batton and other tribal leaders said Stitt seemed unwilling to negotiate. The Legislature voted to renew all tobacco tax and car tag compacts for an extra year, through 2024, to give the governor and tribal leaders more time to work out agreements.

More: Oklahoma task force looks to resolve tribal reservation safety issues without tribal nations

Stitt sued to stop the renewal laws from taking effect, but that case is still pending before the Oklahoma Supreme Court.

The Choctaw Nation and the state of Oklahoma also have a car tag compact that needs to be renewed or it will expire at the end of the year. Under that deal, Choctaw citizens can obtain Choctaw license plates through their local tag offices, and Service Oklahoma maintains drivers’ plate and registration data.

Stitt agreed to reup a similar agreement with the Chickasaw Nation in January. The only other tribal nation that has a car tag compact with the state is the Cherokee Nation. It operates its own tag offices.

Cherokee Nation Principal Chief Chuck Hoskin Jr. has said he’s trying to renew the tribe’s license plate deal with the state as-is. Stitt hasn’t yet agreed to do so.

Molly Young covers Indigenous affairs. Reach her at mollyyoung@gannett.com or 405-347-3534.

This article originally appeared on Oklahoman: Oklahoma governor, Choctaw Nation renew tobacco tax compact