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New York still debating tobacco tax on reservations

New York Gov. Eliot Spitzer (D) said he plans to start collecting state taxes on the sale of tobacco to non-Indians.

The state passed a law requiring tribal retailers to remit state taxes. But former governor George Pataki (R), citing sovereignty issues, refused to enforce it.

Spitzer, who went after tribal and Internet tobacco sales as attorney general, plans to change course. He is being pushed to act by non-Indian businesses, who say the state loses a billion dollars for not collecting the tax on reservations.

Tribes, most notably the Seneca Nation, say they will fight any efforts to impose the tax. But the Oneida Nation says it is willing to sign a tax compact.

Get the Story:
Taxing Indian-owned stores varies in other states (The Utica Observer-Dispatch 2/5)
Lax enforcement of law proves tough on stores (The Utica Observer-Dispatch 2/5)
Cigarette taxes (The Utica Observer-Dispatch 2/5)

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