R.I. tribe opens tax-free smoke shop, faces state challenge

CHARLESTOWN, R.I. – The Narragansett Indian Tribe opened a tax-free smoke shop on tribal land Saturday, almost two weeks after state economic advisers met with the tribe to help solve its economic woes.

“We need money and we need it now. We can’t hold off any more,” Chief Sachem Matthew Thomas said. “Given the circumstances that we had, we had to open. We’re to the point now where we have to take issues into our own hands.”

But Gov. Don Carcieri, who has opposed the plan, issued a statement Saturday challenging the legality of the shop.

“The sale of cigarettes without charging state sales and tobacco taxes is illegal under both state and federal law,” he said. “The appropriate departments of state government have been notified, and we are in the process of responding to what appears to be an illegal act.”

Thomas said in May that he would delay plans to open the shop, while Carcieri offered to propose alternatives to the shop.

“But nothing has really been forthcoming,” Guy Dufault, a tribe spokesman, said. “So the chief went forward to try to get some help for his tribe immediately.”

Thomas said the shop is part of his long-range plan to help the 2,600-member tribe gain solid financial footing. The tribe for years has been stymied in its efforts to build a casino in the state.

Thomas said tribal elders are following the lead of tribes in several other states that operate tax-free smoke shops.