NY Governor Revisits Cigarette Tax Increase, Taxation of Native American Tobacco Sales

State's $9.2 billion deficit prompts governor to seek spending cuts and tax increases.

June 17, 2010

ALBANY, NY - New York Governor David Paterson made a strong appeal to state lawmakers earlier this week, promising new program cuts while proposing a cigarette tax increase and a renewed effort to collect taxes on cigarette sales by Indian retailers, The Buffalo News reports.

"I??m trying not to put a gun to the legislators?? head...but legislators keep shying away from making the tough choices," Paterson said.

The governor expressed a willingness to revisit taxes to tobacco sales on Indian reservations, saying a plan under consideration could begin as early as September 1 and generate as much as $100 million for the state, a modest sum considering the state's $9.2 billion deficit. Additionally, Paterson and state Democrats have proposed raising the state's cigarette excise tax by $1 per pack.

Paterson did not provide specifics on spending cuts, though the Buffalo News speculated that he could tap the state's Empire Zone economic development program that is used by thousands of businesses across the state.

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