N.Y. going after Indian casinos to collect cigarettes tax

[Midnight Mike]

April 27, 2008 -- Tax-free cigarettes from Indian reservations will go up in smoke if some in Albany get their way.

Lawyers for a state lawmaker and Gov. Paterson are scheduled to face off in an upstate courtroom tomorrow in a case aimed at forcing the state to follow the law and collect sales tax on every pack sold by the 200 or so reservation stores and via the Internet.

Last year, roughly 304 million packs of cigarettes were sold by New York's Indian tribes - and, as has been the practice for years, not a penny of tax was collected.

As the state tax rises to $2.75 a pack - the highest in the nation - on June 3, New York would be forfeiting about $836 million in annual revenue by choosing not to collect taxes from reservations. In the city, the tax is $1.50 more.

http://www.nypost.com/seven/04272008/ne ... 108291.htm (http://www.nypost.com/seven/04272008/news/regionalnews/cig_break_brawl_108291.htm)

[PhilDernerJr]

What scumbags. So hard up for money that they have to go after the people that are supposed to be left alone.

[Midnight Mike]

What scumbags. So hard up for money that they have to go after the people that are supposed to be left alone.

I have mixed feelings about this, Indian Casinos are able to operate tax free, yet, the infrastructure leading to/from the casinos are paid for by the tax payers.

If the cigarettes tobacco was grown on the reservation it would be no question about the revenue, but, these are products that are being brought into the casinos, so, yes, it should be taxed.

To make it easier, let the casinos sell the cigarettes tax free & charge a toll for people entering/leaving the casino.....

[PhilDernerJr]

Well what about the cigarettes that are sold to people from the Indians all over the state on non-reversation property?