State to restrain cigarette tax push -- for now
ALBANY -- The administration of Gov. Andrew M. Cuomo said Friday that, for the time being, it will not move ahead with new tax-collection efforts against the growing trade in Native American-manufactured cigarettes and emphasized that it has no intention of sending state tax agents onto Indian territories.
Instead, state agents will focus on major brand-name cigarettes, which have generated increased sales tax revenue in the past month since an appeals court gave the approval for the state to end tax-free tobacco sales.
In all, the state contends it will raise an additional $27 million in tax revenue this year by enforcing a long-stalled law to end tax-free sales to non-Indians on Indian reservations.
The collection statistics, revealed earlier this week in The Buffalo News, reflect the administration's intent to enforce the tax law, Lt. Gov. Robert J. Duffy told reporters Friday in the Capitol.
But Duffy also suggested that the state is seeking to discuss the thorny issue involving Indian-made cigarettes, noting that he had spoken Friday with Seneca Nation President Robert Odawi Porter.
"In areas that there is a clear difference of opinion, our hope is to resolve those quickly, through communication at a table, not negotiate away or negotiate areas we have a clear, legal right to do, but I think we've had a very strong relationship [with tribes] and the governor wants that to continue," Duffy said.
In recent years, Native American tobacco merchants increasingly have sold reservation-made cigarettes at prices far lower than those charged for domestic "premium" brands. At least four manufacturers are operating on Seneca territories, and the Oneida Indian Nation has a production facility on its Central New York reservation.
Since an appeals court on June 21 approved enforcement of a state law requiring all cigarettes sold in the state to have a tax stamp -- costing $4.35 per pack -- major wholesalers have sharply cut back on supplying brand-name cigarettes to Indian retailers.
In the legal view that Duffy affirmed Friday, Cuomo clearly has argued that all cigarettes -- including those made by Indians -- are subject to taxation under the new law.
Porter, the Seneca president, said the four manufacturing facilities on Seneca lands are federally licensed and can move their goods without being subject to state taxation. Federal treaty rights, he also maintains, prevent the state from taxing Seneca commerce.
Native American Tobacco - News
In recent years, Native American tobacco merchants increasingly have sold reservation-made cigarettes at prices far lower than those charged for domestic "premium" brands. At least four manufacturers are operating on Seneca territories, and the Oneida
All of the state's Native American cigarette sellers have agreed to stop carrying major cigarette brands as long as the tax is collected. The imposition of the tax will not boost the state's cigarette tax revenues, said Mr. Gumbs, who was the first
For more upscale lodgings, head to the Pilot Knob Inn B&B (361 New Pilot Knob Lane, Pinnacle, NC, 336-325-2502, www.pilotknobinn.com), made up of six former tobacco barns converted into cabins with stone fireplaces. Rates: $129-249.
Hiller spent much of the 1930s and '40s amassing his seed Jim Rock, left, pictured on July 16, with his wife Dr. Roxanne Gould, was instrumental in getting NASA astronauts to take Native American tobacco seeds into space during the last shuttle launch.
The Administration noted in its press conference, however, that the law allows the state to collect taxes on Native American manufactured cigarettes no less so than other brands sold to non-tribal purchasers. "Allowing some manufacturers to evade the
Native-american-bus.org » Blog Archive » Electronic Cigarette – A ...
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