State's Tax on Native Cigarettes in Budget

Governor Cuomo counting on $130 million in revenue derived from Native-sold cigarettes.

February 08, 2011

ALBANY, NY - New York Governor Andrew Cuomo has made his intentions regarding taxing Native-sold cigarettes loud and clear, as he included a line item for $130 million in revenue derived from reservation tobacco sales in the first state budget of his tenure, the Olean Times Herald reports.

"His position is absolutely clear, he intends to collect taxes on Indian reservations," said Josh Vlasto, a gubernatorial spokesperson.

"This is nothing new, and nothing has changed," said Seneca Nation President Robert Odawi Porter in reaction to the state budget, which was released last week. "We hope to have a chance to discuss these and other issues with the governor."

Governor Cuomo is the fifth New York governor who will try to end tax-free cigarette sales by New York Indian tribes, continuing an effort that began nearly 30 years ago when his father, Mario, was governor.

New York already faces a huge budget deficit. Should his tax collection efforts fail (litigation is ongoing), It's uncertain where the governor plans to generate replacement revenue.

Advertisement
Advertisement
Advertisement