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New York halted from taxing tribal cigarettes

With New York state in financial straits, Governor Paterson decided to recoup revenue by taxing cigarettes sold by Indian American tribes, specifically, the Cayuga Nations and Seneca ribes. The tax would only apply for sales to non-tribal members. However, recently a state appellate judge halted New York state from collecting taxes on cigarette sales. It is really a short delay, as the case will begin for both parties on September 9th in front of a full panel of the appellate court.

It is understandable to close a budget gap, that Governor Paterson would be doing such a thing. New York state is expected to collect as much $4+ a pack, which according to report could bring in as much as $150 million to $200 million in revenue.

Tribal members state that the tax will not only hurt them financially but violates their sovereignty. For one, many people purchase cigarettes from the tribes simply because they don't have to pay taxes. However, the question is, don't the tribes deserve this because we killed off their ancestors?

If the law is passed, wholesalers will have to prepay taxes delivered to retailers whether to a tribal reservation or not. This fight is not an old one, as previous governors have tried before. The case will begin September 9th.

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, NY Taxes Examiner

Matt, a graduate of Georgetown University, worked for two prominent technology companies within the first four years. Then he changed directions and began working for a tax resolution company as a tax professional helping individuals resolve their tax problems. He recently joined another tax...

Comments

  • Anonymous 1 year ago

    Albany spends without a plan and now they want smokers to unfairly take up the extra burden. Over $4 a pack tax? Absolutely insane, in a perfect world where nobody smoked, where would the money come from? Alcohol? Fast Food? Or whatever the government deemed to be unhealthy? Land of the free?

  • Anonymous 1 year ago

    The governor should find another way to come up with the money....The taxpayers are being penalized constantly one way or another for Albanys poor planning. Maybe the ones doing the spending should all take a cut in pay to make up the deficit.

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