New York State has declared war on the Indians.  Governor Paterson has demanded  taxes on Indian cigarettes retailers. The issue is that Indian tribes are allowed to sell cigarettes untaxed to Native Americans but are supposed to collect taxes on cigarettes and tobacco products to non-Indians.

With unemployment down and tax receipts plummeting, the governor is looking to close a huge budget gap.  And now he is ready to scalp the Indians to get his hands on the projected tax monies that the Indians has previously never charged. 

“It hasn’t been collected in a very long time, so it’s obviously going to be difficult, but we think we took a step [Monday] that is a firm step in the direction of making that happen,” Paterson said.

The new law will prohibit manufacturers from selling tobacco without a state tax stamp to any wholesaler who won’t promise the cigarettes won’t be resold tax-free by New York tribes.

Violators could have their licenses revoked and could be prosecuted criminally for perjury or filing a false instrument, the governor said.

Lawmakers say the law could mean hundreds of millions of dollars a year going to the cash-strapped state. Paterson said it could be closer to $62 million. The state excise tax is $2.75 a pack.

The Inidan tribes see the law as a threat to their sovereignty and have threatened possible legal action.

“Attacking tax-free commerce in our territories is short-sighted and disastrous for us and all of western New York,” said Barry Snyder, president of western New York’s Seneca Nation.

“The issue here is not cigarettes, but the protection of the Nation’s treaty rights. We will do what it takes at the right time to protect those rights.”

The state of New York, like many other states are in a “state of panic” in trying to balance the budget.  Looks like Uncle Sam will be the only thing to bail out many states.

Gov. Paterson - leave the Indians alone!