Gov. George Pataki (R) now agrees that Indian businesses must collect state taxes on the sale of goods to non-Indians.

Pataki last year vetoed a bill that would have forced collection of gasoline and cigarette taxes. He said it interfered with tribal sovereignty.

Now Pataki says he will comply with a state law to impose the tax on reservations. The move is seen as a way to strengthen his negotiations with tribes, The Syracuse Post-Standard reported. Five tribes who settled their land claims have already agreed to collect the tax at their proposed Catskills casinos.

Get the Story:
Pataki: N.Y. must collect sales tax from non-Indians (The Syracuse Post-Standard 2/24)

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