State set to get tax on Indian cigarette sales
Read the full story in the Buffalo NewsA ruling Monday by a federal appeals court prompted state officials to begin planning to collect taxes on cigarette sales from Indians to non-Indian customers.
The effort announced by Gov. Andrew M. Cuomo sets up a potential confrontation between the state and Native Americans who call the taxation an assault on their sovereignty and economic well-being.
The state Tax Department was expected to post tax-collection guidelines on its website Monday night -- the first legal step for what Cuomo administration officials said will be an immediate requirement that wholesalers charge the state's $4.35-per-pack excise tax on every pack of cigarettes sold to Indian retailers.
Buffalo Web Hosting and Graphic Design
www.onlinemedia.net - www.vinyl-graphics.com
Web hosting / Web Design - Signs, Banners, Vehicle Graphics
We've been here before. The courts say the state has the "right". Will the state actually try to do it though? Are they willing to deal with burning tires on the thruway? How far are they willing to take this?
30+ jobs to be lost at Attea Bros, and countless hundreds others lost at the reservation gas-n-smoke shops.
Wonderful that you feel "thrilled" about this ichingtheory.
If the untaxed cigarettes arent sold on the indian reservations, there will be little incentive for people to go there for gasoline sales. Basically, the Senecas (and other nations in NY) will suffer severe financial hardships.
Just think, the stores at the current competitive disadvantage will be able to hire those indians to make up for all of the new business they'll see.
Those gas stations and smoke shops are a dime a dozen on the Catt. They're like squatters for crying out loud...
Regardless, the crazy point of this article is the $4.35/pack tax!
I think you'd be hard pressed to prove examples of many stores that are largely affected by the current competitive disadvantage. People still buy cigarettes at non-rez stores that even border along the Indian places. I live about 10 miles from the Irving, NY Seneca reservation. Gas stations selling smokes do brisk business all along the roads leading to Irving.
But yes, the idea of taxing a carton of cigarettes $44 is insane.
Maybe the Indians will circumvent the situation by selling cigarettes manufactured on tribal land. But I doubt thats going to save them. I've sampled their brands, and dont like the flavor/taste very much.
I don't think you're alone on that one. Truth be told, the price differential will probably gte a lot of people to get used to the bad taste of the Res Smokes...
I think you guys (smokers) are treated like 2nd class citizens, and although some aspects of that make me happy (I don't smell like an ashtray after a fish fry), I realize it's BS to shun a legal activity and take away choice from business owners.
Glad to see NYS looking out for those retailers at a competitive disadvantage. Can't wait for NYS to go after communist chinese imports and the competitive disadvantage brought on by this as well!
So Judge Donna Siwek issued a restraining order today. I'm not her biggest fan, but this helps stop the guilotine coming down, at least for a little while.
I think NYS would be better served by giving smokers an unlimited supply of free cigarettes. The sooner the dummies Rick Martin themselves the better. We need to thin out the heard.
Last edited by dtwarren; May 11th, 2011 at 06:47 AM.
“We in America do not have government by the majority. We have government by the majority who participate.” ― Thomas Jefferson
Thanks for that clarification. I just figured it covered all of NYS.
It looks like the initial reports were incorrect. Here is a copy of the TRO: http://www.tax.ny.gov/bus/cig/siwek_...r_05_10_11.pdf
“We in America do not have government by the majority. We have government by the majority who participate.” ― Thomas Jefferson
There are currently 1 users browsing this thread. (0 members and 1 guests)