A public hearing that will take place at a time and place to be announced later will look into why Gov. David Paterson is not collecting taxes on cigarettes sold by American Indian organizations, State Sen. Michael Nozzolio announced Tuesday.

The hearing will be run by the state Senate Committee on Investigations and Government Operations, according to Nozzolio's office. It is currently scheduled for Oct. 27, though no other information has been released.

Nozzolio said in the announcement that failure to collect cigarette taxes is costing the state $65 million in lost revenue. Last year, a law was passed requiring American Indian-owned businesses to pay sales and excise taxes on cigarettes sold to the general public.