Paterson Signs Bill to Enforce Cigarette Tax Collection

In an effort to add to the state's coffers, Governor Paterson signed a law into bill that will "enforce the collection of excise taxes on cigarettes sold at Indian-owned stores." The bill requires manufacturers to have the state tax stamp on its tobacco products before selling them to retailers. The excise tax is $2.75, and it's expected that the bill will bring $400 million more in revenue. While, Indian tribes feel the move will hurt them, as smokers won't head to their stores to buy cigarettes any more, Governor Paterson pointed out the law has always stood, it just hasn't been "adequately applied for far too long" and gave" non-Indians easy access to tax-free cigarettes both on the reservations and over the internet." Mayor Bloomberg, who has sued over the untaxed cigarettes, is happy: "The bottom line is everybody should be paying taxes on cigarettes."

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By Jen Chung in News on December 16, 2008 8:14 AM

Comments [rss]

firewire

This has and always will remain completely illegal. I have seen this same issue arise for years, especially the year and a half I worked on a Native American reservation...selling cigarettes.

This move will cripple the economy of the Native American tribes throughout the entire state. Especially if the NY government decides to tax gasoline as well.

What I have never understood is why taxing cigarettes, whether it be on Native American reservations or NY State in general should be any more or less important than taxing alcohol. Has anyone forgotten that there once was a time when alcohol was ILLEGAL?? Tobacco has never been illegal or banned in the United States.

If I ever quit smoking it will be for health reasons and not because NY State officials essentially tell me that I have to. Gone are the days of freedom in America.

r1b2

There's a deli on the corner of my street that sells loosies. The folks who buy loosies? Real beauties. The dregs of the Earth. In there at 8 AM for a 40 and a few loosies. Livin' the dream. Top of the world, ma!

goyogago

jesus, haven't we fucked with the "indians" enough???

whitecastlerock

They need to tax taxes...

slappy

This is an awful idea. They are using the public's increasing intolerance about smoking to support an action which is fundamentally illegal. Cigarettes are grossly overtaxed to begin with. Why don't they raise taxes on booze? Hands off Indian sovereignty.

Monacan2122

This decision appears, at best, non-sensical and, at worst, racist.

The legal theory that States can tax "non-indians" in Indian Country is in direct contradiction to the Equal Protection Clause in that the sovereignty of the Indian Nation is derived from their status as Governments not as "Indians".

If this is the case, as it appears that it is, then it would seem proper for the Indian Nations to seek remittance of the taxes, from the States, for those taxes that Indians pay in "non-indian" Country.

The States cannot have it both ways in that they can tax their citizens in "Indian Country", yet the tribes do not have the same rights to the tax revenue that their citizens pay to the States, Counties and local Municipalities.

If this is the case then one State, say New York, can dictate that another State, say New Jersey, must remit all taxes that New York residents have paid in New Jersey be they sales, cigarette, gasoline or any other tax.

This is a very slippery slope we have created when we allow one government entity to usurp the sovereignty and taxing authority of another.

NannyState

He better watch out or those indians will send him on a "vision quest".

so1337

Then after that. They are going to put tolls on bike lanes.

In the year 2000

Brooklynbobby

Next, there will be a tax on the oxygen we breathe so that the state can balance their budget.

MT

Don't you love when someone complains that enforcing a law would "hurt them?" They weren't supposed to be doing it in the first place so how can taking it away from them "hurt them?"