On Top of the Pact Act..Wipe Out

[linkup]

http://libn.com/blog/2010/07/30/state-tries-again-to-snuff-out-tax-free-cigs/

State tries again to snuff out tax-free cigs
by Claude Solnik
Published: July 30, 2010
Tags: Native Americans, Shinnecock Indian Nation, tax-free cigarettes

After years in which the state and Native American tribes clashed, New York is taking a new approach to snuff out the sale of cigarettes without sales tax.

Gov. David Paterson signed legislation making it illegal for wholesalers to sell cigarettes without a sales tax stamp to tribes and on reservations as of Sept. 1.

The New York State Department of Taxation and Finance indicated as of that date all packs of cigarettes sold by wholesalers to Indian nations, tribes and reservation cigarette sellers must have state cigarette tax stamps.

“Wholesalers in the state of New York were providing the unstamped cigarettes to Native Americans,” said New York State Senator Jeffrey Klein, D-Bronx, a supporter of the measure.

In the past the state sought to collect sales tax from retailers including tribes who sell to consumers, but this new provision means wholesalers will have to include that tax upfront before cigarettes reach retail on reservations.

“We have been unable to collect cigarette taxes on Native American reservations,” Klein said. “We’ll be able to collect millions of dollars in uncollected revenue.”

Although the state argues it has the right to collect tax on cigarettes sold to the general population, it isn’t seeking to collect tax on cigarettes sold by Native Americans to Native Americans. The U.S. Supreme Court recently ruled that tribal members are entitled to sell untaxed cigarettes to fellow tribal members.

The state is seeking to establish the number of Native American adults in each tribe in order to estimate how many tax-free cigarettes tribes should receive. It’s going to use tribe population calculations as a baseline to determine the number of cigarettes those tribes can obtain without having to pay sales tax.

Based on 2000 Census data, the Shinnecock would qualify for about 160,000 cigarettes annually, while the Unkechaug would qualify for about 32,000.

Upstate, the St. Regis Mohawk would qualify for more than 1 million tax-free cigarettes a year. The Seneca would qualify for about 650,000.

Prior approval will allot set amounts of cigarettes without tax to tribes or the state will provide a set number of coupons to tribes, which can be used to buy cigarettes without tax.

Klein in 2000 wrote a law banning the sale of tax-free cigarettes over the Internet. Although the law was passed and both UPS and FedEx refused to deliver cigarettes sold online, the United States Postal Service continued to make deliveries.

The Obama administration earlier this year closed that loophole through the “Federal Prevent All Cigarette Trafficking Act,” banning the postal service from shipping cigarettes through the mail.

[i]How many jobs were lost as a result of this PUNITIVE legislation,and how many more will be lost?The figures must be staggering considering all the smokers who are out out of work and businesses down the tubes.Obama the "Creator of Jobs" has struck again.Think again if you a Democrat or Republican.Who is right for us.[/i]

[harleyrider1978]

its over.................dont expect these laws to stand much longer,the states need tax dollars and its much cheaper to repeal the bans, promote smoking and repeal the taxes on them.......the same things that caused alcohol prohibition to be repealed are happening right now and the elections comming up are playing directly on the collapse of smokefree.............

[linkup]

I pray you are absolutely right,every day.

[harleyrider1978]

In a similar vein, the government exhorts the dangers of smoking. Yet the same people who condemn smoking are the same ones who realize that cigarette taxes are a great source of revenue. Government does not want you to stop smoking. It wants more revenue, and the government believes that demand for cigarettes is not price sensitive.
Unfortunately when cigarette taxes get too "high," the tax and cost of the product encourage a black market and illegal activity to occur. The same type of problem occurred during Prohibition.


http://www.ldnews.com/ci_15621462

[bsod]

they actually generated more money with lower taxes and a higher employment rate.. the fact that they are increasing the tax indicates that they have no intention of fixing the employment problem.

[linkup]

Higher tobacco taxes result in higher unemployment,not only in the tobacco industry,but in all non tobacco venues.How stupid are the people we elect to govern us?