Paterson signs law to collect taxes on Indian cigarettes : Home: The Buffalo News
Paterson signs law to collect taxes on Indian cigarettes
By Tom Precious
NEWS ALBANY BUREAU
ALBANY -- Gov. David A. Paterson this morning signed into law a new effort to begin collecting taxes on cigarettes sold by Indian retailers to non-Indians, a move certain to spark controversy and push-back from the booming tobacco trade on Seneca Nation reservations.
The governor, who had been saying he wanted to negotiate a resolution to the decades' old dispute, is facing a $15 billion state budget deficit and needs all the revenues he can uncover in the fiscal plan he will unveil Tuesday to close gaps in both 2008 and 2009.
"This law has not been adequately applied for far too long, giving non-Indians easy access to tax-free cigarettes both on the reservations and over the Internet," Paterson said in a statement this afternoon after signing the measure in Utica.
"However, the signing of this bill should not be seen as anything other than enforcing the tax laws of New York in a fair and effective manner. My commitment to the sovereign powers of New York's Indian nations has not and will not waver and I will continue to seek a comprehensive negotiated solution with all of New York's Indian nations," he added.
Indian tribes were already threatening legal action to stop the law from being implemented.
"If the state is serious about resolving this issue, it will negotiate with Indian nations rather than constantly attacking them," said Mark Emery, a spokesman for the Oneida Nation, which sells tax-free cigarettes at 13 Oneida-owned convenience stores in central New York.
And some lawmakers, recalling the violent showdowns the last time the state tried to collect the taxes in 1997, were calling for a calm response. "I urge the governor and the Seneca Nation to undertake discussions to find a peaceful and productive resolution to their differences," said Sen. Catherine Young, R-Olean.
Seneca Nation officials had no immediate comment, a spokesman said.
Lawmakers believe the state is losing at least $400 million annually from Indian tax-free cigarette sales.
Sources on Sunday told The Buffalo News that Paterson would have weakened whatever little chance he might still have to negotiate a settlement if he had vetoed the bill. The measure would require wholesalers to attest, under penalty of perjury, that they have not sold tax-free cigarettes to any retailer. Manufacturers would then, in turn, only supply those wholesalers who make those assurances.
On Tuesday, Paterson is expected to propose slapping higher levies on everything from health insurance companies to consumers who buy "high caloric" beverages, clothes and gasoline.
The governor will unveil how he intends to close nearly $15 billion in deficits over the next 16 months, also wants to trim payments to hospitals and nursing homes, and sharply reduce anticipated state aid to public schools, which would likely push districts to raise property taxes.
Aides said he also will widen the safety net for poorer residents by raising welfare grants for the first time in 18 years and relaxing requirements -- from fingerprinting and in-person interviews to asset tests -- for Medicaid applicants and making hundreds of thousands of more people eligible for the public health insurance program.
The governor also is expected to redo the state's much-criticized Empire Zone program, which provides lucrative tax incentives to private companies, many of which have failed to produce promised job-creation numbers. Sources say the effort could make it more difficult to develop Canal Side, the big Erie Canal-themed development unveiled Sunday in Buffalo whose participants are counting on Empire Zone assistance.
While the governor has said he wants to avoid an increase of the personal income tax in the budget proposal, a whole assortment of fees and other assessments would be imposed on New Yorkers, including higher tuition at state universities, an assessment on health insurance policies that will trickle down to consumers and looming higher fees on everyone from automobile and truck drivers to users of the state's park system.
The governor, sources said, also is looking for givebacks from state workers, and a proposal he pushed in November to have government retirees contribute more to their health insurance is expected to be dusted off and released again in Tuesday's proposed budget.
The governor also is considering longer hours for gamblers to make bets at racetrack casinos. And he is under growing pressure to close some upstate prisons, which have seen a drop in prisoners in recent years. And hundreds of millions from off-budget authorities will be "swept" into the general fund to help balance the plan.
The Legislature in August gave final passage to the cigarette tax bill, but the Assembly held onto the bill to give Paterson time to negotiate with the tribes. The governor recently met with officials from the Seneca Nation regarding the issue of cigarette sales, but the talks produced no deal.
Paterson has been under enormous pressure from industry and health groups -- as well as more recently by unions, lawmakers and budget stakeholders -- to collect what has been estimated at more than $400 million in lost annual revenue as a way to cut back some of his spending cut plans. The tax-free business has flourished over the last decade or more during a time when the tribes have taken advantage of big increases in the tobacco tax at the state level. The state now charges $27.50 per carton in excise taxes.
Seneca officials have said the tax-free sales are protected by treaties dating from the days of George Washington.
Seneca officials were not available to comment.
"If he is signing this and he anticipates the revenue, that is a sign he's very serious, and time will tell," said Russell Sciandra, director of the Center for a Tobacco Free New York.
The collection efforts have been stalled for years. Then-Gov. George E. Pataki once tried, but he quickly backed down after violence along the Thruway by Seneca and other Indian protesters who shut down the highway and clashed with state troopers.
Signing the bill, however, would not automatically begin the collection effort, and Paterson could still stall the process to give himself time to obtain deals with the tribes.
"We've got a financial situation, and the courts have said we should collect. Now we should go one step further and take a look at gasoline and sales taxes," Magee said of those taxes that are not collected by Indian retailers.
In other budget matters, the Paterson administration said that its budget plan would expand the safety net for poor people in several ways. But the plans are mostly either backloaded, with the expensive costs not kicking in until 2010 or they rely on risky federal waivers -- and money from Washington -- that is far from guaranteed.
The proposed benefits include:
-- Raising the basic welfare grant by 30 percent over three years, though not starting until January 2010, affecting 200,000 households. When fully implemented, the average family would get $387 per month, up from $291 now, a "significant investment in New York's most vulnerable population," according to senior Paterson health adviser Joe Baker.
-- Eliminating certain procedures, including fingerprints and face-to-face interviews, for Medicaid applicants, making it easier and faster to qualify.
-- Permitting government workers and 19- and 20-year-olds who don't live with their parents to participate in a Medicaid program known as Family Health Plus.
-- Raising income eligibility to 200 percent of the poverty level, up from 150 percent, for Medicaid coverage, adding about 440,000 adults. It would require Washington's approval and Washington's funding, too. Paterson also wants Washington to cover indigent care for community and mental-health clinics.
-- Higher spending for veterans counseling and lead paint prevention, and more money for food pantries struggling to cope with the economic downturn.
While the Paterson administration sought to highlight its concern for the poor, advocacy groups said anticipated major cuts to health programs would be eroding access to care.
"AARP is concerned about any potential budget cuts that would not allow an older person to stay in their home and live independently in their community as they age," said Bill Ferris, an AARP lobbyist. "Maintaining home- and community-based services should be a priority of New York State in these difficult economic times because it saves the state money."
Daniel Sisto, president of the Healthcare Association of New York State, a hospital and nursing home trade group, said looming budget cuts will force facilities to cut jobs, "further weakening already fragile local economies and threatening the level of care and service the public demands."
[email protected]
last time they tried this......
there were war parties in full war paint all over city hall .....
and I90 closed down with tires burning across it.... cuz it goes thru the middle of the reservation..
and I and my family and friends are very supportive of the Indians 100# .. we have some spare used tires to donate if need be. heh
Paterson signs law to collect taxes on Indian cigarettes
By Tom Precious
NEWS ALBANY BUREAU
ALBANY -- Gov. David A. Paterson this morning signed into law a new effort to begin collecting taxes on cigarettes sold by Indian retailers to non-Indians, a move certain to spark controversy and push-back from the booming tobacco trade on Seneca Nation reservations.
The governor, who had been saying he wanted to negotiate a resolution to the decades' old dispute, is facing a $15 billion state budget deficit and needs all the revenues he can uncover in the fiscal plan he will unveil Tuesday to close gaps in both 2008 and 2009.
"This law has not been adequately applied for far too long, giving non-Indians easy access to tax-free cigarettes both on the reservations and over the Internet," Paterson said in a statement this afternoon after signing the measure in Utica.
"However, the signing of this bill should not be seen as anything other than enforcing the tax laws of New York in a fair and effective manner. My commitment to the sovereign powers of New York's Indian nations has not and will not waver and I will continue to seek a comprehensive negotiated solution with all of New York's Indian nations," he added.
Indian tribes were already threatening legal action to stop the law from being implemented.
"If the state is serious about resolving this issue, it will negotiate with Indian nations rather than constantly attacking them," said Mark Emery, a spokesman for the Oneida Nation, which sells tax-free cigarettes at 13 Oneida-owned convenience stores in central New York.
And some lawmakers, recalling the violent showdowns the last time the state tried to collect the taxes in 1997, were calling for a calm response. "I urge the governor and the Seneca Nation to undertake discussions to find a peaceful and productive resolution to their differences," said Sen. Catherine Young, R-Olean.
Seneca Nation officials had no immediate comment, a spokesman said.
Lawmakers believe the state is losing at least $400 million annually from Indian tax-free cigarette sales.
Sources on Sunday told The Buffalo News that Paterson would have weakened whatever little chance he might still have to negotiate a settlement if he had vetoed the bill. The measure would require wholesalers to attest, under penalty of perjury, that they have not sold tax-free cigarettes to any retailer. Manufacturers would then, in turn, only supply those wholesalers who make those assurances.
On Tuesday, Paterson is expected to propose slapping higher levies on everything from health insurance companies to consumers who buy "high caloric" beverages, clothes and gasoline.
The governor will unveil how he intends to close nearly $15 billion in deficits over the next 16 months, also wants to trim payments to hospitals and nursing homes, and sharply reduce anticipated state aid to public schools, which would likely push districts to raise property taxes.
Aides said he also will widen the safety net for poorer residents by raising welfare grants for the first time in 18 years and relaxing requirements -- from fingerprinting and in-person interviews to asset tests -- for Medicaid applicants and making hundreds of thousands of more people eligible for the public health insurance program.
The governor also is expected to redo the state's much-criticized Empire Zone program, which provides lucrative tax incentives to private companies, many of which have failed to produce promised job-creation numbers. Sources say the effort could make it more difficult to develop Canal Side, the big Erie Canal-themed development unveiled Sunday in Buffalo whose participants are counting on Empire Zone assistance.
While the governor has said he wants to avoid an increase of the personal income tax in the budget proposal, a whole assortment of fees and other assessments would be imposed on New Yorkers, including higher tuition at state universities, an assessment on health insurance policies that will trickle down to consumers and looming higher fees on everyone from automobile and truck drivers to users of the state's park system.
The governor, sources said, also is looking for givebacks from state workers, and a proposal he pushed in November to have government retirees contribute more to their health insurance is expected to be dusted off and released again in Tuesday's proposed budget.
The governor also is considering longer hours for gamblers to make bets at racetrack casinos. And he is under growing pressure to close some upstate prisons, which have seen a drop in prisoners in recent years. And hundreds of millions from off-budget authorities will be "swept" into the general fund to help balance the plan.
The Legislature in August gave final passage to the cigarette tax bill, but the Assembly held onto the bill to give Paterson time to negotiate with the tribes. The governor recently met with officials from the Seneca Nation regarding the issue of cigarette sales, but the talks produced no deal.
Paterson has been under enormous pressure from industry and health groups -- as well as more recently by unions, lawmakers and budget stakeholders -- to collect what has been estimated at more than $400 million in lost annual revenue as a way to cut back some of his spending cut plans. The tax-free business has flourished over the last decade or more during a time when the tribes have taken advantage of big increases in the tobacco tax at the state level. The state now charges $27.50 per carton in excise taxes.
Seneca officials have said the tax-free sales are protected by treaties dating from the days of George Washington.
Seneca officials were not available to comment.
"If he is signing this and he anticipates the revenue, that is a sign he's very serious, and time will tell," said Russell Sciandra, director of the Center for a Tobacco Free New York.
The collection efforts have been stalled for years. Then-Gov. George E. Pataki once tried, but he quickly backed down after violence along the Thruway by Seneca and other Indian protesters who shut down the highway and clashed with state troopers.
Signing the bill, however, would not automatically begin the collection effort, and Paterson could still stall the process to give himself time to obtain deals with the tribes.
"We've got a financial situation, and the courts have said we should collect. Now we should go one step further and take a look at gasoline and sales taxes," Magee said of those taxes that are not collected by Indian retailers.
In other budget matters, the Paterson administration said that its budget plan would expand the safety net for poor people in several ways. But the plans are mostly either backloaded, with the expensive costs not kicking in until 2010 or they rely on risky federal waivers -- and money from Washington -- that is far from guaranteed.
The proposed benefits include:
-- Raising the basic welfare grant by 30 percent over three years, though not starting until January 2010, affecting 200,000 households. When fully implemented, the average family would get $387 per month, up from $291 now, a "significant investment in New York's most vulnerable population," according to senior Paterson health adviser Joe Baker.
-- Eliminating certain procedures, including fingerprints and face-to-face interviews, for Medicaid applicants, making it easier and faster to qualify.
-- Permitting government workers and 19- and 20-year-olds who don't live with their parents to participate in a Medicaid program known as Family Health Plus.
-- Raising income eligibility to 200 percent of the poverty level, up from 150 percent, for Medicaid coverage, adding about 440,000 adults. It would require Washington's approval and Washington's funding, too. Paterson also wants Washington to cover indigent care for community and mental-health clinics.
-- Higher spending for veterans counseling and lead paint prevention, and more money for food pantries struggling to cope with the economic downturn.
While the Paterson administration sought to highlight its concern for the poor, advocacy groups said anticipated major cuts to health programs would be eroding access to care.
"AARP is concerned about any potential budget cuts that would not allow an older person to stay in their home and live independently in their community as they age," said Bill Ferris, an AARP lobbyist. "Maintaining home- and community-based services should be a priority of New York State in these difficult economic times because it saves the state money."
Daniel Sisto, president of the Healthcare Association of New York State, a hospital and nursing home trade group, said looming budget cuts will force facilities to cut jobs, "further weakening already fragile local economies and threatening the level of care and service the public demands."
[email protected]
last time they tried this......
there were war parties in full war paint all over city hall .....
and I90 closed down with tires burning across it.... cuz it goes thru the middle of the reservation..
and I and my family and friends are very supportive of the Indians 100# .. we have some spare used tires to donate if need be. heh
