The New York Department of Taxation and Finance doesn't plan on enforcing legislation that would require the state to collect cigarette and fuel taxes on reservations.

On March 1, the state is supposed to collect taxes on the sale of goods to non-Indians. But Gov. George Pataki (R) is seeking to delay enforcement for a year, something Democrat lawmakers don't want to do.

State attorney general Eliot Spitzer, a Democrat and front-runner for governor, says the tax law should be enforced. So does the New York Association of Convenience Stores, which claims the state is losing at least $900 million a year in tobacco and gas sales on reservations.

The law requires wholesalers to pass on the state taxes to tribal retailers.

Get the Story:
Spitzer: Pataki administration will violate law on Indian sales taxes (AP 2/23)

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