"We were pleased to hear that Gov. David Paterson's proposed budget includes an attempt to collect taxes on cigarettes sold by Indian tribes, but we're not exactly holding our breaths while we wait to see what will come of it.

Paterson wants the state to collect taxes directly from wholesalers that do business with tribes. If the wholesalers can be forced to collect taxes on their sales, the state will get its cut before the cigarettes ever make it to Indian-owned retail shops.

A bonus with this plan, in theory anyway, is that if Indian retailers are forced to pay more for their cigarettes, they will have to raise their prices to make up the difference, leveling the playing field for non-Indian retailers who have been complaining for years about unfair competition.

But as laudable as this goal is, Paterson also continues to fall back on his position that there is a need for the state to negotiate with tribes."

Get the Story:
Our View: Cigarette tax collection needs action, not talk (The Auburn Citizen 1/27)

Relevant Documents:
2010-11 Executive Budget | Briefing Book

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