The state Assembly last week finally delivered a bill to Gov. David Paterson that would require collection of state taxes on cigarettes sold by Indian retailers to non-Indian customers.

The legislation passed both houses of the state Legislature months ago, but the Assembly had held off sending it to the governor to give him more time to negotiate with tribes. When the legislation was delivered to the governor Thursday, though, a 10-day clock to sign or veto it began.

It's about time.

Paterson needs to realize fast that the only prudent approach is to sign this bill into law, and then take immediate steps to begin enforcing it.

He needs to look back in recent history to realize that plenty of past attempts to negotiate this issue have failed. And he needs to look ahead at the state's financial stability to realize that New Yorkers desperately need the estimated $400 million in revenues being lost by the state's inability to collect the tax.

The Indian nations selling cigarettes in New York have long tried to portray this matter as a sovereignty issue. That might be the case if the state were looking to tax members of the tribes themselves.

But that's not what would happen. This law, and past laws that other governors chose to ignore, target sales to non-Indian customers.

Those are the same types of sales that take place in thousands of convenience stores, supermarkets and smoke shops across the state that are owned by non-Indian residents. And there's no reason those entrepreneurs should continue to operate at such a competitive disadvantage.

In the past few months, Paterson has shown political courage by calling for tough decisions on matters of state spending.

It's time he demonstrates some of that same integrity with respect to this issue.