Governor: Seneca Indian Nation president angered by state's new cigarette tax law

By The Associated Press

Wednesday, December 17, 2008 12:18 AM EST

IRVING - Seneca Indian President Barry Snyder accused Gov. David Paterson of knowingly signing a flawed bill into law to avoid an embarrassing override by state lawmakers had he vetoed the measure instead.
A day after Paterson approved legislation intended to enforce collection of excise taxes on cigarettes sold at Indian-owned stores, an angry Snyder said Tuesday that tribal leaders were weighing options that included legal action and a media campaign in protest.

In letters to Paterson and President George Bush, Snyder said the law tramples on rights guaranteed the tribe under the 1794 Canandaigua Treaty, including the right to “free use and enjoyment” of its land.

“We expected more from this governor,” Snyder, surrounded by tribal officials, said during a news conference on the nation's Cattaraugus Reservation, about 35 miles south of Buffalo.

Although Snyder declined to detail the actions tribal leaders might take, he ruled out a repeat of the tire-burning protests that shut down a 30-mile stretch of the New York State Thruway in 1997, during a previous attempt by the state to collect taxes from wholesalers who supply Indian retailers.

“Any type of violence is not on our agenda,” Snyder said. “We don't want anybody to get hurt over a tax issue.”

The new law, scheduled to take effect in two months, will prohibit manufacturers from selling tobacco products without a state tax stamp to any wholesaler that doesn't certify the cigarettes won't be resold tax-free by New York tribes.

The bill would likely raise the cost to Indian retailers and force them to charge prices more in line with what non-Indian competitors of tribes' discount smokeshops charge.

Snyder said Paterson repeatedly told him the bill was flawed during a meeting at Paterson's New York City office more than a week ago, but that he was going to sign it anyway to avoid having a veto overridden.

“I think he was afraid if he did not sign the bill and vetoed the bill, which would be a gesture to the Indian nations of the state of New York, it would be an automatic override. He would look bad in the eyes of his constituents,” Snyder said. “Pure politics.”

The governor's office did not immediately respond to a request for comment.

While supporters believe collecting taxes from cigarette sales by Indian nations in New York could generate hundreds of millions of dollars, Paterson said Monday the experiences of other states show the figure would probably be slightly more than $62 million a year. The state excise tax is $2.75 per pack.

Indian leaders warn of devastating job losses for both Indian and non-Indian employees if stores are forced out of business.

“It would be like another General Motors closure,” said Mohawk Tribal Council Chief James Ransom, of the St. Regis reservation in northern New York. He estimated 400 to 500 people in St. Lawrence and Franklin counties could lose their jobs.

The Senecas' nearly 200 businesses on three western New York territories employ about 1,000 people and generate about $300 million for their nation, tribal leaders said. That represents about one-third of the Seneca economy, with casinos and tribal government accounting for the rest.

“There is panic by the individual retailers,” Seneca member Michael Waterman said.

Although the law is scheduled to take effect 60 days after Monday's signing, the Oneida Nation expressed doubt it would ever be enacted given the state's recent history of backing down from the collections.

“None of the state's other efforts to infringe on sovereignty have worked and there is no reason to believe this will work either,” Oneida spokesman Mark Emery said.

A lawyer for the Onondagas south of Syracuse, meanwhile, said a 2007 injunction granted in Erie County in a previous tax challenge could prevent enforcement of the new law.

“We still clearly think that negotiation is the only way to resolve these issues,” lawyer Joseph Heath said.

The Citizens' Say

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There are 5 comment(s)

doug3628 wrote on Dec 17, 2008 1:24 PM:

" new york tax hungry and way out of control stop buying garbage we dont need [cars,trucks,policecars, etc]wake up ur killing america and new york "

dan w wrote on Dec 17, 2008 12:46 PM:

" Lets do the math. The state will gain just 62 million a year. By enforcing a current tax law. 62 million divided by 2.75 is about 22.5 million packs of cigarettes. I'm more than sure there is a lot more sold in year than that in the state. Maybe 620 million bucks? Its that fuzzy math thing "

ethan wrote on Dec 17, 2008 12:18 PM:

" NYS Spending has been out of control and will continue till there is no one left... oh wait, the ones who can't afford to move out will be stuck here. "

childofthekorn1318 wrote on Dec 17, 2008 8:49 AM:

" when is the state going to cut its spending, they keep taxing, and they keep spending, for the love of everything, stop wasting money new york state! "

spatrx wrote on Dec 17, 2008 7:20 AM:

" Gov. David Paterson,lets see a higher tax impossed on seeing eye dogs and walking canes. "

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