A day after being raided by the Cayuga and Seneca county sheriffs' offices, both Lake Side Trading stores were open for business Wednesday, minus their cigarette inventory.
The stores was raided Tuesday after the sheriffs' offices, working with the respective district attorney's offices, obtained a search warrant to seize any untaxed cigarettes and other evidence that could be used to charge officials from the Cayuga Nation with felony tax evasion.
Cayuga County District Attorney Jon Budelmann said deputies seized more than 1.5 million untaxed cigarettes from the Union Springs store. Possessing more than 10,000 untaxed cigarettes qualifies as a felony.
Authorities estimated that the cigarettes taken in both locations Tuesday represented roughly $500,000 in lost revenue to the state because of unpaid excise taxes.
The tribe, which owns the Lake Side Trading stores in Seneca Falls and Union Springs, had previously said they do not have to pay excise taxes or collect sales taxes on transactions that take place on their property because the nation is a sovereign entity.
But Budelmann said the store property is not on sovereign land and must follow all of the state's tax laws.
A store employee said the business reopened at 9 p.m. Tuesday and that cars are allowed to purchase tax-free gas, but added that customers were unable to purchase cigarettes at the time because they were all seized during the raid.
It was not immediately clear how the nation will operate the stores in the future. Messages left with tribe officials and an attorney for the Cayugas were not returned Wednesday.
Cayuga County District Attorney Jon Budelmann said deputies seized more than 1.5 million untaxed cigarettes from the Union Springs store. Possessing more than 10,000 untaxed cigarettes qualifies as a felony.
Authorities estimated that the cigarettes taken in both locations Tuesday represented roughly $500,000 in lost revenue to the state because of unpaid excise taxes.
The tribe, which owns the Lake Side Trading stores in Seneca Falls and Union Springs, had previously said they do not have to pay excise taxes or collect sales taxes on transactions that take place on their property because the nation is a sovereign entity.
But Budelmann said the store property is not on sovereign land and must follow all of the state's tax laws.
A store employee said the business reopened at 9 p.m. Tuesday and that cars are allowed to purchase tax-free gas, but added that customers were unable to purchase cigarettes at the time because they were all seized during the raid.
It was not immediately clear how the nation will operate the stores in the future. Messages left with tribe officials and an attorney for the Cayugas were not returned Wednesday.
Citizen
Hot Jobs
New! Off the Menu
The Citizens' Say
Post your comment - click hereThere are 5 comment(s)
s wrote on Nov 27, 2008 9:49 PM:
Read the article a little more closely. The 1.5 Million cigarettes were seized from the Union Springs store alone. The $500,000.00 in lost revenue is estimated by considering the cigarettes seized from BOTH locations. Makes a little more sense to you now? So who's the fool? "
STOREOWNER wrote on Nov 27, 2008 9:31 AM:
mrbillb wrote on Nov 27, 2008 7:47 AM:
rdj1954 wrote on Nov 27, 2008 2:28 AM:
sandyinny wrote on Nov 27, 2008 12:04 AM: