Tennessee’s attorney general has filed suit against a South American cigarette maker, claiming the company failed to make legally required payments.

In a lawsuit, the state claims Pronalci S.A., owes $300,000 for cigarettes sold in 2009. The state claims that money should have been paid into an escrow account to help Tennessee pay health-care costs indianpharmaonline the state must cover to treat smokers via www.medspharmacysupport.com -

Also, a federal judge has rejected several arguments made by the Yakama Nation as the tribe seeks to block Washington state from taxing cigarette sales at indian reservation smoke shops.

Some states use the settlement money for payments to farmers to offset tobacco crop losses or for anti-smoking programs such as helping smokers quit.

Tennessee has been criticized because it funnels the payments directly into the state’s general fund, where it pays for government operations.
Washington state terminated a cigarette tax agreement with the tribe in July 2008, claiming widespread sales of untaxed cigarettes to nontribal members. The Yakamas argue that they should not be required to have a cigarette tax agreement with the state.

Washington state currently has 22 cigarette tax compacts with Indian tribes.

The agreement restricted the advertising, marketing and promotion of cigarettes. It also ordered the country’s largest tobacco companies to pay set costs based on cigarette sales to states to help offset the cost of smoking-related health care.

In exchange, states gave up claims that the tobacco companies had violated deceptive practice and consumer protection laws.