ALBANY, N.Y. (AP) – New York Gov. David Paterson on Thursday promised to finally start collecting taxes on cigarettes sold by Native American stores, despite state police warnings that such enforcement could result in “violence and death.”
The state plans to collect a $4.35-per-pack sales tax on cigarettes sold by Native American retailers to non-Indian customers beginning next Wednesday.
Tribes have refused to collect the tax, citing their sovereignty and treaties dating to 1794. 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 Thursday. “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.”
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 tax on Indian cigarettes is expected to generate about $200 million a year in revenue. Tribal retailers would still be able to sell cigarettes tax-free to members.
“What we're doing that's different than what the other three governors did is we're not going on Indian nation property,” Paterson said. “We're telling them that any cigarettes that are sold in New York state will have a (tax) stamp on them. If they don't have a stamp on them, we're going to move on whoever's selling the cigarettes.”
The Seneca and Mohawk tribes have requested federal court orders to stop the tax collection, claiming it would violate their rights.
New York City Mayor Michael Bloomberg recently said the governor should act like a cowboy with a shotgun and enforce the state tax law.
Paterson called those comments “inappropriate.” The mayor's remarks also drew sharp criticism from the Senecas and Oneidas. Oneida Nation Representative Ray Halbritter said Bloomberg's imagery was as distasteful to his tribe as if someone urged Nazis to take action against Jews.