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Tribal warfare looms over push for cig tax |
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Written by Administrator
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Friday, 27 August 2010 |
Tribal warfare looms over push for cig tax
By BRENDAN SCOTT Post Correspondent
August 27, 2010
ALBANY -- Gov. Paterson is on the warpath.
The state, after decades of failed talks, is slated to begin collecting taxes on cigarettes sold on Indian reservations Wednesday.
The last time the state tried to collect the tax, in 1997, protests erupted and tires were burned on the Thruway, shutting down a 30-mile stretch.
"There will be quite an uprising and protest to this, but I am going to maintain this policy," Paterson said.
"This is a very dangerous situation," he told WOR-AM. "There is a -- I think -- high alert. The State Police tells us over and over again that there could be violence and death as a result of some of the measures we're taking."
Many smokers drive to reservation retailers in New York to buy cigarettes at nearly half-price. Reservation stores sold more than 24 million cartons of cigarettes in 2009, about 1 out of every 3 packs sold in the state.
The tribes have generally viewed efforts to tax their cigarettes as an attack on sovereignty, and occasionally have threatened to resist the moves with violence.
Seneca Indian President Barry Snyder Seneca has repeatedly said "violence is not on our agenda," but the nation's leadership acknowledges that some of the tribe's more than 7,000 members might disagree.
The stakes have risen in recent years, as the cash-strapped state has increased tobacco taxes, making the treasury more dependent on cigarette taxes and driving more consumers to reservations in search of cut-rate smokes.
In June, lawmakers approved raising the tax on a pack of cigarettes to a nation-leading $4.35, with the understanding that Paterson would finally collect taxes from the tribes.
The latest proposal calls for collecting the tax from wholesalers before the cigarettes reach the reservations.
Wholesalers would be allowed to sell a limited amount of tax-free cigarettes to the Indians themselves.
The state is counting on the proposal to bring in $150 million to help plug what was an estimated $9.2 billion budget hole.
The tribes have sued in federal and state court to block the tax plan from taking effect.
Paterson said some people "may just not understand how serious the situation is," and said he is hoping for a peaceful resolution.
The tribes have been seething over Mayor Bloomberg's suggestion that Paterson get "a cowboy hat and a shotgun," and prepare for an old-fashioned standoff.
"I love the mayor, but this is a very dangerous situation," Paterson said.
Bloomberg spokesman Stu Loeser shrugged off Paterson's remarks, saying, "The governor said the state will start collecting the taxes next week, and we think that's great."
http://www.nypost.com/p/news/local/tribal_warfare_looms_over_push_for_1pldl0PjuViPufxfER2WEL
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