Two New York tribes fear their major source of income -- sales of tobacco products -- will be lost if their smoke shops are forced to collect state taxes.

The Shinnecock Nation and the Unkechaug Nation are recognized by the state. Like the federally recognized tribes in the state, their status allows them to avoid paying the $1.50 a pack minimum tax.

But that could change under a lawsuit filed by non-Indian retailers who say they are losing business to tribal smokeshops on reservations throughout the state. The Shinnecock and Unkechaug have asked a federal judge to dismiss the case.

All the tribes in the state face another challenge in the coming year. A new state law requires the collection of the $1.50 tax but outgoing Gov. George Pataki (R) delayed enforcement.

Democratic candidate Eliot Spitzer, who is ahead in the polls, says he will enforce it. As attorney general, he has worked out deals with the credit card and shipping industries to block tribal tobacco sales.

Get the Story:
Tribes Fear Cigarette Tax Law Could Destroy Their Prosperity (The New York Times 11/6)
pwnyt

Relevant Links:
Honor Indian Treaties - http://www.honorindiantreaties.org

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