Will State Collect Cigarette Tax From Senecas ?

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As our lawmakers look for ways to save money, they've approved a plan to tax cigarette sales on Indian reservations.

The New York State Senate approved legislation Friday that would require retailers on Indian reservations to charge a tax on tobacco sales. State Senator Dale Volker was one of the senators who voted for it.

"You're talking about a situation where we got a deficit and here's three to four hundred million dollars," Volker said. "And if we get that money, obviously that makes a big difference in the deficit."

Senator Antoine Thompson agreed Saturday saying that it was at least a starting point.

"I think this budget has revenues earmarked as a result of the cigarette tax; and, if the cigarette tax is not collected, the budget deficit will grow even more dramatically," Thompson said.

State Senator Catharine Young from Chautauqua County and State Senator George Maziarz were the only two senators to vote against it.

"Why did you vote against it senator," 2 On Your Side's Josh Boose asked Maziarz.

"I think right now we should be looking at reducing spending, not trying to collect more taxes," Maziarz replied.

The bill already passed the state assembly in June. It now goes to the governor to sign. The Governor's office will only say he's reviewing it.

The Seneca Nation of Indians say;

"This bill violates our right to free commerce... the state legislature should not try to help close its budget gap by denying the right of purchase to the Seneca Nation and its licensed retailers."

If the bill becomes law, enforcing it will be the real test.

In May, 1997, when the state wanted to collect cigarette and gas taxes from the Seneca Nation, the Senecas burned tires in protest near the thruway.

This time they say they will; "pursue all legal remedies to enforce our federal treaty rights to sovereignty."

"The Senecas say they are going to fight this, what do you say to that," Boose asked Maziarz.

"It's been very difficult under Governor Pataki, under Governor Spitzer, and I think now under Governor Paterson it's going to be very difficult to collect sales taxes on Native American's reservations," Maziarz said.

The Senecas say the majority of Western New York voters and consumers support their right to sell tax-free products. The President of the Seneca Nation says Governor Paterson should consider the bill, "veto worthy".

The full statement from Seneca Nation of Indians President Maurice John Sr. is as follows:

"The Seneca Nation has one of the largest private sector economies of any Native American tribe in North America. The Seneca Nation economy has been put in this position many times in our recent history. We will pursue all legal remedies to enforce our federal treaty rights to sovereignty. We will always act to protect the Seneca people's rights because our treaties are the supreme law of the land, and this bill violates our right to free commerce."

"Further, legislation that would adversely impact the Western New York economy by damaging a $200 million Seneca retailing sector, while violating treaties between the United States and the Nation, is certainly veto worthy."

"The state Legislature should not try to help close its budget gap by denying the right of purchase to the Seneca Nation and its licensed retailers or by jeopardizing the jobs and livelihoods of more than 1,000 Seneca and non-Seneca families involved in our retail economy."

"We understand the demands on state legislators seeking re-election this year, but we would note that the strong majority of Western New York voters and consumers elsewhere as well have long supported the Nation's right to commerce and right to sell tax-immune products, while they enjoy their own freedom to shop where they choose."

WGRZ-TV/ wgrz.com

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