The recent arrest of an Onondaga County woman does not reflect any policy of tighter enforcement of state tax laws on consumers of American Indian-owned businesses, a representative from the New York State Police said Friday.
However, state law does indicate that individuals are liable for unpaid taxes on products purchased at such locations, according to a spokesperson from a state retail organization.
When Gay Breed was charged Thursday with tax evasion for allegedly possessing five cartons of untaxed cigarettes, she was initially stopped for turning left at a red light. State Police Lt. Jim Greenwood said that is usually how these types of arrests are made.
Greenwood, who works out of Troop E Headquarters in Canandaigua, was hesitant to comment Friday specifically on the arrest, having not been involved, but he said that tax evasion arrests related to purchases from Indian businesses usually result from information collected through non-related stops or arrests.
"It's not like (troopers) set up road checks and are looking for these violations," Greenwood said. "When they find them, it is at the discretion of the trooper (to move forward)."
Greenwood also said he is not aware of any directive among the state police to enforce tax evasion laws by targeting consumers.
Breed, 44, of Lysander, allegedly purchased five cartons of cigarettes, holding 200 cigarettes each, from the Lake Side Trading convenience store on Route 90 in Union Springs. The store is operated by the Cayuga Nation, and the price of the cigarettes did not include state sales tax.
According to the state police, because there were more than two cartons, possession of the untaxed products is a misdemeanor crime. A family member of Breed said Thursday that Breed was not aware she had committed a crime.
Breed is scheduled to appear Oct. 21 in Aurelius Town Court.
New York State tax law indicates that non-Indian consumers who purchase untaxed products at Indian-owned stores are liable for the payment of those taxes. Each consumer is allowed a limited quantity of untaxed product -- two cartons of cigarettes -- but is responsible for paying sales tax on quantities beyond that.
"Whether they realize it or not, or they want to realize it or not, that is a taxable transaction," said James Calvin, president of the New York State Association of Convenience Stores.
Calvin said he does not believe the state is going to be mounting new enforcement initiatives by stopping consumers.
However, NYACS claimed earlier this month that an excise tax increase on cigarettes of $1.25 per pack has contributed to a jump in consumer tax evasion. While cigarette tax revenues increased by $73 million between June 3 and Aug. 31 due to the tax hike, 5.5 million fewer taxable cartons were sold, according to NYACS.
"(Five cartons) may seem like small potatoes to some," Calvin said, "but the reality is that millions of cartons of cigarettes are purchased every year by non-Indian consumers at various Indian outlets across the state."
Calvin said the most "sensible" way to collect those taxes is to enforce a law already passed by the state Legislature requiring the collection of taxes on cigarettes and gasoline sold at American Indian stores.
Calvin said NYACS has proposed having warehouses that deliver the items to tribal stores prepay the sales tax.
"That money would be built in to the wholesale price to the store," Calvin said. "It is a law. It ought to be enforced."
B.J. Radford, chief operating officer for the Cayuga Nation businesses, declined to comment Friday on the arrest.
When Gay Breed was charged Thursday with tax evasion for allegedly possessing five cartons of untaxed cigarettes, she was initially stopped for turning left at a red light. State Police Lt. Jim Greenwood said that is usually how these types of arrests are made.
Greenwood, who works out of Troop E Headquarters in Canandaigua, was hesitant to comment Friday specifically on the arrest, having not been involved, but he said that tax evasion arrests related to purchases from Indian businesses usually result from information collected through non-related stops or arrests.
"It's not like (troopers) set up road checks and are looking for these violations," Greenwood said. "When they find them, it is at the discretion of the trooper (to move forward)."
Greenwood also said he is not aware of any directive among the state police to enforce tax evasion laws by targeting consumers.
Breed, 44, of Lysander, allegedly purchased five cartons of cigarettes, holding 200 cigarettes each, from the Lake Side Trading convenience store on Route 90 in Union Springs. The store is operated by the Cayuga Nation, and the price of the cigarettes did not include state sales tax.
According to the state police, because there were more than two cartons, possession of the untaxed products is a misdemeanor crime. A family member of Breed said Thursday that Breed was not aware she had committed a crime.
Breed is scheduled to appear Oct. 21 in Aurelius Town Court.
New York State tax law indicates that non-Indian consumers who purchase untaxed products at Indian-owned stores are liable for the payment of those taxes. Each consumer is allowed a limited quantity of untaxed product -- two cartons of cigarettes -- but is responsible for paying sales tax on quantities beyond that.
"Whether they realize it or not, or they want to realize it or not, that is a taxable transaction," said James Calvin, president of the New York State Association of Convenience Stores.
Calvin said he does not believe the state is going to be mounting new enforcement initiatives by stopping consumers.
However, NYACS claimed earlier this month that an excise tax increase on cigarettes of $1.25 per pack has contributed to a jump in consumer tax evasion. While cigarette tax revenues increased by $73 million between June 3 and Aug. 31 due to the tax hike, 5.5 million fewer taxable cartons were sold, according to NYACS.
"(Five cartons) may seem like small potatoes to some," Calvin said, "but the reality is that millions of cartons of cigarettes are purchased every year by non-Indian consumers at various Indian outlets across the state."
Calvin said the most "sensible" way to collect those taxes is to enforce a law already passed by the state Legislature requiring the collection of taxes on cigarettes and gasoline sold at American Indian stores.
Calvin said NYACS has proposed having warehouses that deliver the items to tribal stores prepay the sales tax.
"That money would be built in to the wholesale price to the store," Calvin said. "It is a law. It ought to be enforced."
B.J. Radford, chief operating officer for the Cayuga Nation businesses, declined to comment Friday on the arrest.
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