New York Gov. David Paterson (D) is expected to sign a bill today that seeks to impose state tobacco taxes on reservations, according to news reports.

Tribes lobbied Paterson not to sign the bill, citing treaties and the negative impact of taxation on their economies. But talks with the Seneca Nation, whose reservation is home to major tobacco retailers, failed.

The bill requires wholesalers to collect state taxes. The cost would be borne by tribal retailers, who are expected to pass it on to consumers.

If Paterson signs the bill, the state will still have to come up with rules to implement it. Prior efforts have failed at this point amid tribal opposition.

Get the Story:
Paterson is primed to attack deficit (The Buffalo News 12/15)
Paterson: Collect taxes on cigarettes (The Syracuse Post-Standard 12/15)
Paterson expected to sign bill that makes wholesalers collect taxes from Indian-owned businesses (The Auburn Citizen 12/15)
Indian Chief Leads Fight to Keep Selling Cigarettes (The New York Times 12/13)

Related Stories:
Editorial: Tax tribal tobacco sales in New York (12/15)
New York tobacco taxation bill sent to governor (12/12)
Seneca Nation worried about New York taxation push (12/9)
Anti-smoking groups back tribal tobacco bill (11/12)
Seneca Nation runs campaign against tobacco bill (11/11)
New York City seeks smokeshop injunction (10/29)
Editorial: Indian smokeshops and organized crime (10/27)
Editorial: New York City finds a new foe in tribes (10/10)
More than 30M cartons sold on New York reservations (10/2)
New York City mayor sues Indian smokeshops (9/30)
New York governor pressed on tribal tobacco bill (09/04)
Editorial: Negotiate tribal tobacco deal in New York (9/3)
St. Regis Mohawk Tribe opposes tobacco tax bill (8/26)
Seneca Nation lobbies governor on tobacco tax bill (8/14)
Seneca Nation opposes tobacco tax bill (8/12)