The decision comes in a meeting of lawyers for the Narragansetts, representatives for the state and Charlestown and the District judge who originally ruled on the case.

09:34 AM EDT on Tuesday, May 24, 2005

BY KATIE MULVANEY
Journal Staff Writer

PROVIDENCE -- The Narragansett Indian tribe will hold off on reopening its tax-free smoke shop until the legal case plays out, lawyers for the tribe announced yesterday.

"We're going to open as soon as we possibly can," Jack Killoy said yesterday after a conference in U.S. District Court. But, he said, the Narragansetts intend to abide by the court's decision.

The shop's reopening appeared more imminent late last week. The tribal government voted Thursday to allow tax-free tobacco sales to Native Americans, raising the ire of state and Charlestown officials.

The shop was closed two years ago after state police raided it to stop what the state claimed was the illegal sale of tax-free cigarettes.

The U.S. 1st Circuit Court of Appeals ruled May 12 that the state violated the tribe's sovereignty by forcibly entering the shop on tribal land in Charlestown. The three-judge panel also found that the state is entitled to collect taxes on the tribe's cigarette sales to non-Indians. The decision, which the state plans to appeal, in part upheld and overturned a ruling by U.S. District Judge William E. Smith.

Smith had ruled that the tribe must comply with state cigarette tax law, and that the state did not violate the tribe's sovereign rights in the raid.

Late last week, the state and Charlestown sought an emergency conference before Smith to "avert potential confrontation."

Smith met in chambers yesterday with Killoy and Douglas Luckerman, for the tribe; Joseph S. Larisa Jr., solicitor of Indian affairs in Charlestown; Claire Richards, special counsel for the state; and Assistant Attorney General Neil F.X. Kelly.

"We're pleased," Larisa said. "Everybody in Rhode Island pays cigarette tax. The tribe wanted to create an exception for Indians."

Smith's December 2003 order would "remain in full force" until at least seven days after all appeals had been exhausted, Larisa said.

Any resolution remains months if not years away. The state has until early next month to request a review by the full appeals court, Larisa said. If the full court refuses to hear the case, then the state could appeal to the U.S. Supreme Court.

Richards said Smith "facilitated a dialogue" between the parties, who reached consensus that the smoke shop would not reopen at this time.

Chief Sachem Matthew Thomas, meanwhile, has requested a meeting with Governor Carcieri about the tribe's plans. In a letter hand-delivered to the governor's office Friday, the chief suggested that the state and the tribe should begin "negotiations on a compact dealing with the sales of products to non-Native Americans."

Jeff Neal, spokesman for the governor, said a meeting could come as soon as Thursday.