The state and tribe have disagreed on certain rights on the reservation. On July 14, 2003, Rhode Island state police raided a tribe-run smoke shop on the Charlestown reservation, the culmination of a dispute over the tribe's failure to pay state taxes on its sale of cigarettes. In 2005, the U.S. First Circuit Court of Appeals declared the police action a violation of the tribe's sovereignty. In 2006, an "en banc" decision of the First Circuit Court of Appeals reversed the prior decision, stating that the raid did not violate the tribe's sovereign immunity because of the 1978 Joint Memorandum of Agreement settling the land issues, in which the tribe agreed that state law would be observed on its land.