NY Looking For Ways to Tax Cigarettes on Reservations

NY Looking For Ways to Tax Cigarettes on Reservations

By Sharon Osorio

New York State lawmakers are considering a different way to collect taxes from cigarettes sold on Indian reservations.
Native Americans say they don't have to charge New York State taxes on cigarettes because they're on sovereign territory. But some state lawmakers, including Antoine Thompson, say they want to level the playing field for stores in New York that do collect taxes.
One potential plan is to make it illegal for cigarette manufacturers to sell to wholesalers that sell to tax-free stores on reservations.
Thompson, a Democrat from Western New York, says lawmakers including himself are considering further "bold" ideas, including charging the non-Indian customers a sales tax once they leave Native territory. He says one idea is to set up a mechanism around Indian territory where consumers would be asked whether they made any purchases. Consumers would either pay the tax at that point, or risk being charged with tax evasion if they don't declare their cigarette purchase.
Thompson also says these proposals or eventual laws could convince all the affected parties, including the Senecas, to work toward a compromise.
No word tonight on whether the Senecas would entertain a compromise, but the leaders of the sovereign nation have not considered a compromise before.
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