For decades, American indian cigarettes near me tribes have fought a losing battle against the state over whether their cigarette sales should be taxed. Now, a few of the tribes are trying to fight back by launching their own brands. But the strategy is causing friction between state officials and convenience store owners who say the move amounts to a covert form of tax evasion.

The new strategy is spreading fast. In the past year, a dozen of these tribe-owned cigarette manufacturers opened or expanded operations in upstate New York, largely in areas near Oneida and Cayuga tribal retail stores. Some are even making their own labels, which they sell at their own Indian-owned stores and to other local retailers.

Some of these cigarette makers are also partnering with wholesalers to channel their cigarettes through the reservation — bypassing state and local taxes. Last year, an analysis of government data by the ICIJ found that one in three cigarettes sold in New York was channeled through reservations by these wholesalers.

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New York’s state tobacco department recently sent a letter to all of its wholesalers warning them that the state could re-instate cigarette sales on Indian reservations unless the wholesalers abided by strict regulations, including the use of a new system of reservation tax exemption coupons. So far, only Philip Morris has heeded the state’s threat, dropping its Marlboros and Camels from Indian-owned stores.

But in recent weeks, Nice N Easy convenience stores that do business near the Akwesasne and Seneca reservation have reported a significant increase in revenues at their Indian-branded cigarettes counters. The company’s executive vice president says it’s impossible to know why.