From: SMOKEFREE@compuserve.com
Date: Mon, 08/11/08
State Legislature passes surprise bill to tax Indian cigarettes
By Tom Precious
The Buffalo News
August 8, 2008
http://www.buffalonews.com/258/story/410103.html
Final passage was given today to legislation aimed at ending tax-free
cigarette sales by Indian retailers. The measure, which had died in the
Senate in June, was suddenly resurrected today during a one-day special
session of the Senate. It seeks to obtain what lawmakers believe could be
at least $400 million in taxes on sales of cigarettes by Indian retailers
to non-Indian smokers.
"The only thing worse than taxes are taxes that are unevenly collected,"
said Sen. Michael Nozzolio, a central New York Republican and sponsor of
the bill.
The measure will now be sent to Gov. David Paterson, who must decide
whether to sign it and anger Indian tribes or veto it and lose millions of
dollars in potential tax revenue at a time when the state is facing growing
deficits.
The Seneca Nation has led the fight against taxing of Native American
products, saying treaties stated they would not be taxed.
"I think it's going to be tough for the governor to be talking about
cutting services and raising taxes and fees and not collecting at least
$500 million that's already due," said Russell Sciandra, director of the
Center for a Tobacco Free New York.
The governor's office did not have an immediate comment.
The legislation requires tobacco wholesalers who supply retailers,
including Indian stores and internet sites, to certify under penalty of
perjury that they will not supply cigarettes that do not possess a legal
New York state tax stamp.
Cigarette manufacturers, in turn, can only sell to wholesalers that provide
the certification, the legislation requires.
Lawmakers have approved measures in the past with previous governors to
stop the tax-free sales. But the past three governors -- Eliot Spitzer,
George Pataki and Mario Cuomo -- have backed off their own promises to
collect the taxes.
- - -
Will State Collect Cigarette Tax From Senecas?
WGRZ-TV/ wgrz.com (Buffalo, NY)
August 11, 2008
http://www.wgrz.com/news/local/story.aspx?storyid=59931&catid=37&GID=H3SKWq
/fnikavGkBhyA91ErsUg%20dcM/Ggp4vUD2b0Sk%3D
As our lawmakers look for ways to save money, they've approved a plan to
tax cigarette sales on Indian reservations.
The New York State Senate approved legislation Friday that would require
retailers on Indian reservations to charge a tax on tobacco sales. State
Senator Dale Volker was one of the senators who voted for it.
"You're talking about a situation where we got a deficit and here's three
to four hundred million dollars," Volker said. "And if we get that money,
obviously that makes a big difference in the deficit."
Senator Antoine Thompson agreed Saturday saying that it was at least a
starting point.
"I think this budget has revenues earmarked as a result of the cigarette
tax; and, if the cigarette tax is not collected, the budget deficit will
grow even more dramatically," Thompson said.
State Senator Catharine Young from Chautauqua County and State Senator
George Maziarz were the only two senators to vote against it.
"Why did you vote against it senator," 2 On Your Side's Josh Boose asked
Maziarz.
"I think right now we should be looking at reducing spending, not trying to
collect more taxes," Maziarz replied.
The bill already passed the state assembly in June. It now goes to the
governor to sign. The Governor's office will only say he's reviewing it.
The Seneca Nation of Indians say;
"This bill violates our right to free commerce... the state legislature
should not try to help close its budget gap by denying the right of
purchase to the Seneca Nation and its licensed retailers."
If the bill becomes law, enforcing it will be the real test.
In May, 1997, when the state wanted to collect cigarette and gas taxes from
the Seneca Nation, the Senecas burned tires in protest near the thruway.
This time they say they will; "pursue all legal remedies to enforce our
federal treaty rights to sovereignty."
"The Senecas say they are going to fight this, what do you say to that,"
Boose asked Maziarz.
"It's been very difficult under Governor Pataki, under Governor Spitzer,
and I think now under Governor Paterson it's going to be very difficult to
collect sales taxes on Native American's reservations," Maziarz said.
The Senecas say the majority of Western New York voters and consumers
support their right to sell tax-free products. The President of the Seneca
Nation says Governor Paterson should consider the bill, "veto worthy".
The full statement from Seneca Nation of Indians President Maurice John Sr.
is as follows:
"The Seneca Nation has one of the largest private sector economies of any
Native American tribe in North America. The Seneca Nation economy has been
put in this position many times in our recent history. We will pursue all
legal remedies to enforce our federal treaty rights to sovereignty. We will
always act to protect the Seneca people's rights because our treaties are
the supreme law of the land, and this bill violates our right to free
commerce."
"Further, legislation that would adversely impact the Western New York
economy by damaging a $200 million Seneca retailing sector, while violating
treaties between the United States and the Nation, is certainly veto
worthy."
"The state Legislature should not try to help close its budget gap by
denying the right of purchase to the Seneca Nation and its licensed
retailers or by jeopardizing the jobs and livelihoods of more than 1,000
Seneca and non-Seneca families involved in our retail economy."
"We understand the demands on state legislators seeking re-election this
year, but we would note that the strong majority of Western New York voters
and consumers elsewhere as well have long supported the Nation's right to
commerce and right to sell tax-immune products, while they enjoy their own
freedom to shop where they choose."
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