Non-Indian retailers in New York say a proposed soda tax will give tribal businesses an unfair advantage.

Gov. David A. Paterson (D) wants to impose an 18 percent surcharge on soft drinks, in addition to an 8 percent existing tax. That means tribal businesses could sell the same drinks at a savings of 25 percent or more.

Non-Indians already complain that tribes can sell cigarettes and gasoline without collecting state taxes. Paterson recently signed a bill to impose the tax on reservation businesses but tribes say they will fight it.

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More controversy over soft drink tax (The Buffalo News 1/11)