Compacts are made for the mutual benefit of the Cherokee Nation and the State of Oklahoma. It has been well established in the Courts that Federal law controls taxation in Indian country. We avoid costly litigation and develop arrangements that recognize each other’s jurisdiction with minimal disruption to Oklahoma citizens. Taxes that are collected by the Nation are reinvested in Oklahoma schools and communities in a way that is very much like the State itself does. In addition to helping tribal members the funds distributed by the Nation directly or indirectly help all Oklahomans.

Cherokee Nation tribal members pay taxes that are remitted to the State of Oklahoma. Tribal members pay state income taxes and retail sales taxes at the same rate as other citizens. Tribal members pay property taxes unless they live on restricted land. The Cherokee Nation paid $70,482.57 in property taxes for the year 2001.

The Cherokee Nation deducts state and federal taxes from employee wages. Taxes paid in Fiscal Year 200l were $14,459,369.37. The Cherokee Nation paid:

State Withholding $2,076,873.76
State Unemployment $ 73,059.24
FICA $7,114,538.42
Federal $5,194,897.75

Tobacco Tax Compact

In the fall of 1992 the Cherokee Nation and the State of Oklahoma entered the Tribal/State Tobacco Tax Compact. The Nation has collected $21,083,056 of which $5,270,764 was paid to the State of Oklahoma in lieu of state tobacco excise and sales taxes.

Motor Fuel Compact

In 1996 the Cherokee Nation and the State of Oklahoma entered a compact for the purpose of levying a tax on the use and sale of motor fuel on lands subject to the jurisdiction of the Nation. Through October 29, 2001 the Nation has collected $32,259,162.70. As agreed to in the compact the tribe has used the monies collected for tribal government programs consisting of highway and bridge construction, health, education, correction, and law enforcement.

Motor Vehicle Registration

On October 29, 2001, the Cherokee Nation Tax Commission began the issuance of motor vehicle registration of tag, title and tax within the jurisdiction of the Cherokee Nation.

Revenue from the sale of Cherokee Nation car tags will fund:

•	Public schools in the Cherokee Nation jurisdictional area - 38%
•	Area highway and roads - 20%
•	Cherokee Nation Marshal Service, municipalities and county law enforcement in the jurisdictional area of the Cherokee Nation - up to 20%
•	Remaining monies after payment of Tax Commission operating costs will fund tribal education, housing, health programs and education

At the end of the first-quarter of operations the Nation has issued 3,700 vehicle registrations, and $600,000 in revenue has been collected.

In 2002 there are more than 20,000 vehicle registrations.

Cross-Deputation Compact

Oklahoma has a compact with Cherokee Nation providing for cross-deputization of Cherokee Nation Marshals with state and local units of government for law enforcement personnel. This provides cooperation and avoids jurisdictional issues regarding Indian country and helps supplement state and local law enforcement.

Law Enforcement Compact

Oklahoma has a compact with Cherokee Nation providing for cross-deputization of Cherokee Nation Marshals with state and local units of government for law enforcement personnel. This provides cooperation and avoids jurisdictional issues regarding Indian country and helps supplement state and local law enforcement.

Proposed Compacts

Motor Vehicle Licensing Compact

Representatives of the Cherokee Nation have been negotiating a compact with Governor Keating’s office whereby the state would expressly recognize the Nation’s tribal tags issued under the Cherokee Nation Motor Vehicle Licensing Code. The Nation’s motor vehicle registration information would be included in the State’s motor vehicle database so that our tags will enjoy nationwide recognition.

Gaming Compact

Cherokee Nation and other tribes have discussed a proposed gaming compact with the Governor, Attorney General and members of the Joint Committee on State/Tribal Relations. Such a compact would set rules for class II games and "skill" games. If approved by the state and tribal governments, the tribes would provide revenue to the state. This compact is pending policy decisions by the Governor and Legislature.