A controversial move by the state legislature could mean that cigarettes will cost the same price everywhere in New York State. That's because a bill is headed to the governor's office right now that would require tobacco wholesalers to tax cigarettes headed to the reservation.

Right now there's at least a $3.00 difference in price between a pack of cigarettes bought in a local store and a pack bought on an Indian reservation. That price gap jumps to $20-to-30 if you purchase by the carton. This new bill would end that disparity but it all rests on the governor's decision.

"Break a Treaty, Break the Law." This is the sign you see when you drive down Route 20 across Seneca Nation land. The Indian nation makes a lot of money on sales of duty-free goods like gasoline and cigarettes. But that could soon change if a new bill is signed into law. "This legislation is something that the state has been trying to do for years," said State Senator George Maziarz, of the 62nd district.

Maziarz is one of two senators who voted against the measure. But it already passed the House and is now on its way to the governor's office. In the past, three governors have failed to enforce a tax on Indian cigarettes, but that was during different financial times. Currently New York state is facing a budget crisis which is why so many legislators support taxing customers who purchase smokes on Indian land.

"I think this is not a good time to do this. Its not a good time now to be going after more taxes," said Sen. Maziarz.

But down the street from the reservation, some people might think otherwise. "We don't usually don't sell any cartons. The packs we do sell, we sell maybe like 2 or 3 a day," said Brittney Barchett, a cashier at the Kwik-Fill.

Local stores can't compete with duty-free prices. "People come in from out of state and when you tell them its $6.36 for a pack of cigarettes... They're like -- What?! And then, people behind them end up saying... Oh, the reservation is down the road so they end up going to the reservation," said Barchett.

The Seneca Nation's president, Maurice John Sr, vows to use legal action to enforce sovereignty rights and says, "Legislation that would adversely impact the WNY economy by damaging a $200 million Seneca retailing sector, while violating treaties between the United States and the Nation, is certainly veto worthy."

7 News tried to talk to some nation store owners tonight about this proposed bill but everyone referred us to the Seneca Nation president who is not granting any on-camera interviews. Governor Paterson will have 10 days to decide whether to veto or pass this bill.