title: Excise tax differences at Oklahoma smoke shops: an opportunity for inter-tribal coordination.
abstract: BACKGROUND
  Oklahoma's tribal tobacco shops are distributed throughout the state, including in urban areas. During the time frame of this study, state excise tax rates for cigarettes varied by tribe and region, and took five distinct levels, ranging from 5.75 cents to $1.03 per pack.
  
  
  OBJECTIVE
  To describe the pricing behavior of these smoke shops in a way that could support potential increases in the tribal taxation of cigarettes within the state.
  
  
  METHODS
  Two waves (2010 and 2011) of site visits were conducted, covering nearly all tribal smoke shops in the northeastern quarter of the state, an area containing the city of Tulsa and 60% of all tribal outlets. Researchers recorded representative prices and verified the tax rate paid (via tax stamp) for each shop. Data were analyzed in 2013.
  
  
  RESULTS
  Lower-taxed tribal cigarettes tended to be priced at discounts that were even greater than the differential in tax rates. For example, across waves, the average pack of Marlboros from a shop with a 5.75-cent tax stamp sold for 52 cents less than the same pack from a 25.75-cent shop and 60 cents less than from a 51.5-cent shop. The minimal inter-tribal price response to the discontinuation of large quantities of contraband cigarette sales suggests that inter-tribal price competition in the Tulsa area is not as intense as expected.
  
  
  CONCLUSIONS
  Ample scope exists for either unilateral or coordinated cross-tribal tax and price increases that will increase tribal cigarette tax revenue collections and improve public health.
authors.affiliation: Department of Accounting and Finance, Northeastern State University, Broken Arrow, Oklahoma. Electronic address: fritzl@nsuok.edu.
authors.forename: Fritz L
authors.initials: FL
authors.lastname: Laux
authors.affiliation: Department of Economics, University of Illinois at Chicago, Chicago, Illinois.
authors.forename: Frank J
authors.initials: FJ
authors.lastname: Chaloupka
authors.affiliation: Department of Biostatistics and Epidemiology, University of Oklahoma, Oklahoma City, Oklahoma.
authors.forename: Laura A
authors.initials: LA
authors.lastname: Beebe
mesh_terms: D003132:Commerce / Q000191:economics / Q000706:statistics & numerical data; D004465:Economic Competition; D006801:Humans; D007198:Indians, North American; D009825:Oklahoma; D013660:Taxes / Q000191:economics*; D062789:Tobacco Products / Q000191:economics*