NEW YORK: Seneca Nation Against Tax Collection On Their Cigarette Sales

 

Representatives of the Seneca Nation on August 14th urged the administration of New York Gov. David Paterson to veto a bill that would require tax collections on cigarettes currently sold tax-free by tribal retailers.  On August 8th, the New York Senate passed a bill aimed at ending tax-free cigarette sales on Indian reservations as a way to collect hundreds of millions of dollars in cigarette taxes that currently remain uncollected every year. The bill would ban manufacturers from selling tobacco products without a State tax stamp to any wholesaler that does not certify that the cigarettes will not be resold tax-free. Untaxed cigarettes can still be sold by tribal stores to Native Americans. Seneca leaders claim that the tax collections would harm the western New York economy. Gov. Paterson’s aides declined to say what he might do with the bill. Meanwhile, new legislation introduced on August 13th would make wholesalers pay cigarette excise taxes and allow Indian tribes to seek refunds for the taxes paid on any cigarettes that were sold to other Indians (AP 8/15). 

 

So what do you think? Should the State of NY collect the taxes or should the Seneca Nation continue to maintain their soveriegnty? Or is this just a by product of taxing tobacco? Let folks know what you think about this issue!

17 comments ↓

#1 Bill Godshall on 08.28.08 at 11:28 am

Per recent conversations with folks in New York (who have been advocating for equitable collection of NY state cigarette excise revenue), it appears that Governor Paterson isn’t supportive of the legislation, but instead desires to negotiate a deal with the Native Tribes (just as Pataki and Spitzer unsuccessfully attempted to do during the past decade).

Also, the NY legislation doesn’t appear to target the manufacture of counterfeit cigarettes by Native Tribes in NY that are smuggled into Canada (many of which are sold in plastic bags of 200 cigarettes without payment of any cigarette excise taxes ).

Most of the cigarettes sold by the Native Tribes in NY (via the Internet and at retail locations on Tribal land) have paid federal cigarette excise tax, but not the state cigarette excise tax.

#2 kentucky rebel on 08.29.08 at 11:50 pm

I have question regarding the federal excise tax on cigarettes in NY sold on the reservations? Do the brands made by the Nations sold on the resevations include the federal excise tax?

#3 Bill Godshall on 09.02.08 at 11:30 am

Per kentucky rebel’s inquiry, I strongly doubt (but am not certain) that cigarettes manufactured by Native Americans (virtually all of which are smuggled into Canada in plastic bags of 200 sticks) pay any US federal cigarette excise taxes.

I think that only one Native reservation is actually manufacturing cigarettes, while many other reservations sell FET paid cigarettes via retail stores on reservations and the Internet.

#4 Cowboys Stink on 09.12.08 at 10:51 am

I think that they should play by the same rules as retailers. Let’s face it, they were conquered. Why should they have different rights? That was hundreds of years ago. It is time to integrate into society. Same with the casinos. We need to stop with these liberal agendas.

#5 Britnee on 10.08.08 at 12:57 am

Okay, my fiance’ is Seneca. I am glad that they don’t have to pay any taxes, I mean really they are put through a lot of bull…and yes that was hundreds of years ago, but really if you think about it, it is still going on today! They are still confinded in a way to a reservation, they don’t really get jack squot! Dude, it was only what 100 years ago and sooner than that, that a lot of this stuff was going on. So, if you disagree with the no taxes law, screw you. Keep your opinion, you don’t have to go through what they do. Learn your history or even the present!!!

#6 Native Son on 10.08.08 at 10:00 pm

Being of Native American descent I see the argument from a perspective often not discussed. The state of NY is poorly run and spends much money on excessive programs and then looks to blame the situation on the Native Americans. If the state ran itself better and did away with frivilous programs that are not needed the deficit would be reduced.

#7 The OTP Kid on 10.09.08 at 12:26 pm

Here’s another take: The Native Americans have been granted these rules of autonomy in order to assist them in rebuiling their society after being decimated by the white settlers. Call it an advantage for people at a disadvantage.

The Society for the Blind is awarded non-bid concession rights in state institutions in order to benefit those people who are blind and disadvantaged. The current governor, Patterson, of NY is blind. I haven’t heard him trying to eliminate this element of unfair competition!

#8 Native Son on 10.09.08 at 1:12 pm

Awesome point - Great thinking OTP Kid.

#9 Brave heart on 10.16.08 at 1:03 am

Like the indian reservations are the cause for NY’s budget problems - cut me a break! Get over it - go cut some of the unneeded programs that are sapping the government’s finances.

#10 The OTP Kid on 10.16.08 at 10:38 am

You would have thought Eliott Spitzer would have found a hooker on an Indian Reservation just for good measure….

#11 Brave heart on 10.16.08 at 5:15 pm

Yeah - now that’s funny! Probably would call him chief snake in the grass!

#12 jdschvy on 10.21.08 at 6:19 pm

the indian nations should be just that! the right to govern thier NATION on financial matters should be their right and priveledge. no different than how we deal with france or canada, we dont dictate to them on thier issues. let them have peace and prosperity as free americans !!!!!

#13 The OTP Kid on 10.22.08 at 10:23 am

I think this whole problem is Kevin Costner’s fault when he made Dances with Wolves. He made the Indians think they were hot $h!+ again, and now they’re out of control.

It’s a good thing Waterworld never took off, just imagine the problems we’d have then!

#14 Smoker Babe on 10.29.08 at 7:05 pm

This whole issue is just an example of the political system going bad and blaming a very small segment of people for the massive mismanagement of a state government. The government just needs to focus on the fact that they need to reduce their expenses.

#15 MIMI on 11.11.08 at 10:29 am

I believe the Seneca Nation continue to maintain their soveriegnty. People like Mayor Bloomberg and Eliott Spitzer are trying to use this to take attention off of there failures.

Bloomberg is NYC mayor, the people on the island are unable to vote him in or out of office. Instead of focusing on Wall street Main street crash he is worried about the native americans on long island. Then he changes laws to meet his own agenda and says its to help NYC through this crisis, but what was he doing to prevent this crisis (to busy worrying about the native americans on the island).

Fact remains a treaty was worked out and an agreement was reached with native american a now that government sees them benefiting a little, they want to change the rules. In there heads they are the only ones allowed to profit.

Fact remains no other state, but NY iss having problems sticking to there agreement with there native americans. There bad financial management got them is the mess that there in and there trying to use native americans as there scapegoat. Not only did they take away there land, now there trying to take away there businesses

#16 Bill Godshall on 11.12.08 at 6:21 pm

NY Governor Paterson needs to negotiate a settlement with the Native Tribes in NY similar to the one agreed to last week by Oklahoma and The Cherokee Nation at
http://www.tulsaworld.com/webextra/content/items/TobaccoCompact2008.pdf

Paterson should also insist that any agreement ban the manufacturing and smuggling of counterfeit cigarettes across the Canadian border.

#17 Bear Clan on 11.14.08 at 2:36 am

It’s definitely government out of control in NY state. And it gives NYACS a reason to exist. We get tired of hearing of the plight of NY State being the fault of the Natives. Why get all bent out of shape over natives learning the fruits of capitalism? The NY government foolishly raises taxes on cigarettes. Why don’t all you folks against the natives take on the true issue of out of control spending? Raise taxes on other items and just stop the foolishness.

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