More than 30 million cartons of cigarettes were sold on reservation in New York last year, representing nearly one-third of all cigarettes sold in the state.
The bulk of wholesale shipments went to smokeshops on the Seneca Nation and the Unkechaug Indian Nation, a state recognized tribe. Both tribes say they have a right to sell cigarettes without state interference.
Competitors want the state to collect sales taxes on cigarettes sold to non-Indians. They say the state is losing out on a $1 billion in tax revenues a year.
New York has the highest tax rate on cigarettes in the nation. A pack that goes for $9 off the reservation can go for around $5 on a reservation.
Get the Story:Suits Claim Wide Reach of Cigarettes From Tribes (The New York Times 10/2)B
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