A federal judge in eastern Washington has ruled a cigarette maker on the Yakama Indian Reservation owes $58 million in unpaid taxes and penalties.
The privately-owned tobacco company has tried, so far unsuccessfully, to assert a treaty right to trade tax free.
The U.S. Treasury Department went after King Mountain Tobacco Company for federal cigarette taxes unpaid since 2009. The cigarette factory is owned by a Yakama tribal member. The company's lawyers and the tribal government insist the reservation-based business is not subject to federal or state taxes.