New York Gov. George Pataki (R) vetoed a bill on Monday that would have forced Indian businesses to collect taxes on cigarettes, gas and other goods sold to non-Indians.

Pataki rejected the bill as an "assault on tribal sovereignty." But he also said he wanted to negotiate individual agreements with tribes to resolve taxation issues.

Tribal leaders say their treaties protect them from state taxation. Non-Indian convenience say they are losing $900 million a year to Indian businesses.

The tax bill passed the Senate and Assembly by near unanimous margins.

Get the Story:
Tax on Sales at Indian Reservations Blocked (The New York Times 11/16)
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Sales tax veto upsets retailers (The Syracuse Post-Standard 11/16)
Pataki has reservation about taxes (Newsday 11/16)
Pataki vetoes Indian tax bill (AP 11/16)

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