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Thread: Another try at taxing Indian cigarettes

  1. #1
    Member dtwarren's Avatar
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    Another try at taxing Indian cigarettes

    From: http://www.buffalonews.com/2010/02/2...igarettes.html

    Paterson proposes new rules for collecting taxes at wholesale level
    Another try at taxing Indian cigarettes

    By Tom Precious
    NEWS ALBANY BUREAU
    Updated: February 24, 2010, 7:51 am /
    Published: February 24, 2010, 12:30 am

    ALBANY — A state tax department policy of not enforcing tax collections on Indian cigarette sales was officially rescinded Tuesday by the Paterson administration. But it will still take approval of a new set of regulations before the tax-free sales are halted.

    Gov. David A. Paterson announced a proposed set of rules to break the decades-long dispute over tax-free tobacco sales, which critics say could be costing the state as much as $1 billion a year in revenues. The new plan envisions the tax being collected “upstream” at the wholesale level and not at Indian retail shops.

    The proposed rules require cigarette manufacturers to sell cigarettes only to licensed stamping agents that certify they are not supplying tax-free retailers, such as the dozens of businesses on the Seneca Nation reservations, with cigarettes missing an official state tax stamp; they face perjury charges for lying.

    The latest move comes as the State Senate Finance Committee is poised to issue subpoenas as early as today to a broad segment of the tobacco industry.

    Sen. Carl Kruger, a Brooklyn Democrat who has railed against the lost tobacco excise taxes because of Indian and bootleg sales, is targeting nearly every aspect of the cigarette supply chain with a legal request for information that “could fill a dump truck,” said one government source.

    The lawmaker wants to get details on the extent of the state’s untaxed cigarette industry; one state estimate has claimed nearly 40 percent of smokers buy untaxed or low-tax cigarettes “regularly.”

    The Paterson administration today also will propose legislation to put in statute its new plan to permit a set number of tax-free cigarette sales to the state’s nine tribes for personal consumption by their members.

    It would bypass a law already on the books that calls for coupons to be used by Indians to buy their own tax-free cigarettes. The legislation would lift a current injunction imposed by a state court judge in Buffalo against the state’s enforcement of the coupon-based law.

    The release of the proposed rules kicks off a 45-day comment period and a review period that could see enactment in six months, according to an administration official. Government sources said any agreements struck in the coming months to resolve the issue with individual Indian tribes could supersede the new rules.

    The proposal comes as Paterson also is trying to push through a $1-per-pack excise tax increase, to $3.75, the nation’s highest. The move would further increase the profitability of bootleg and Indian cigarette sales unless a new collection mechanism is adopted.
    “I own I am not a friend to a very energetic government. It is always oppressive.” – Thomas Jefferson
    https://restore-representation.org/

  2. #2
    anyones neighbor
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    Quote Originally Posted by dtwarren View Post
    I have a feeling we're in for the same bull crap again. Why do these people in authority think it's ok to even MENTION stuff like this? Stop spending NY states money so frivolously! There's enough for everybody if it was spent right. Come to my house & we'll set up a budget for ya. I even have the forms!

  3. #3
    Member BorderBob's Avatar
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    Tax the Indians...but if you do then also close the Indian casinos. You cannot recognize soverignity to bypass the state Constitution while not recognizing it for tax purposes.





    b.b.

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    If they state was serious about this, they would enforce the tax at the distribution level. Tax every pack that leaves the warehouses and heads to a store. Some states already do it with IT products, why not smokes!
    "I know you guys enjoy reading my stuff because it all makes sense. "

    Dumbest post ever! Thanks for the laugh PO!

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    Member PickOranges's Avatar
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    Quote Originally Posted by Dougles View Post
    If they state was serious about this, they would enforce the tax at the distribution level. Tax every pack that leaves the warehouses and heads to a store. Some states already do it with IT products, why not smokes!
    Your right.. They do this all over.. Even islands and foreign countries get their taxes and tariff before it enters.


    Leave the Indians alone. You can't blame them for the state fiscal problems.

    Our state doesn't allow gaming or is it legal? Bingo lottery, sports pools, slots etc. Even Pataki and Paterson circumvent the laws with AEG.

    Leave the Indians alone. Make this state more business friendly and you would have revenue.
    Kiss someone that's different. It helps.
    Lets get the facts first, then go for the jugular!!
    It's all transparent, just read between the lines..

  6. #6
    Member dtwarren's Avatar
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    The taxes are collected from the distributor.

    Here are the proposed regulations: http://www.tax.state.ny.us/pdf/rulem...ation/text.pdf
    “I own I am not a friend to a very energetic government. It is always oppressive.” – Thomas Jefferson
    https://restore-representation.org/

  7. #7
    anyones neighbor
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    Seneca Nation Response

    Seneca Nation Response to State's Issuance of Regulations to Collect Cigarette Tax
    Press Release Source: Seneca Nation of Indians On Wednesday February 24, 2010, 5:20 pm EST

    CATTARAUGUS TERRITORY, N.Y., Feb. 24 /PRNewswire/ -- "The notice of proposed tax certification regulations released yesterday by the State Tax Department reflects another illegal attempt by the State to collect taxes on our commerce. Instead of trying to destroy our treaty-protected economy, the State should be focused on developing opportunities with us since the Nation is a proven contributor to Western New York's regional growth," said Seneca Nation President Barry E. Snyder, Sr. "As we have before, the Seneca Nation will vigorously oppose all state efforts to interfere with our treaty rights and our economy."

    "State officials should realize by now that we are not a scapegoat for Albany's budget problems. It is no secret that Albany is struggling with a budget deficit of historic proportion. But that is a problem that comes from decades of overspending and poor resource mismanagement. It is a crisis that the State created for itself," said Snyder.

    "The Seneca Nation paid its fair share when we relinquished most of our aboriginal lands to the State and its people hundreds of years ago. There is no reason the Senecas should be paying the price today, especially when the Nation has poured millions into New York State's economy and created thousands of new jobs in Western New York," added Snyder.




    Contact: Susan Asquith/Sharon Linstedt


    716.842.2222


    sasquith@traverscollins.com


    slinstedt@traverscollins.com
    http://finance.yahoo.com/news/Seneca....html?x=0&.v=1

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