NY State Legislature Passes Bill to End Tax-Free Indian Cigarettes
Lawmakers Hope to Recoup $400 Million Annually

Once again, New York legislators have passed legislation aimed at ending tax-free cigarette sales by Indian retailers to non-Indian smokers, reports The Buffalo News.  The bill requires tobacco wholesalers who supply retailers – including Indian stores and Internet sites – to certify under penalty of perjury that they will not supply cigarettes that do not possess a legal New York state tax stamp.  In turn, cigarette manufacturers can only sell cigarettes to wholesalers that provide the necessary certification.

The measure had died in the State Senate in June, but was suddenly resurrected and passed during a one-day special session of the State Senate on August 11.  “The only thing worse than taxes are taxes that are unevenly collected,” said Sen. Michael Nozzolio, a Republican who sponsored the bill.  The measure now goes to Gov. David Paterson who must decide whether to sign it and anger Indian tribes or veto it and lose millions of dollars in much needed tax revenue, reports NACS Connect.

Previous measures have been passed by the New York State legislature but Governors Eliot Spitzer, George Pataki and Mario Cuomo have all failed to collect taxes.