Posted by: audreybenenati | January 22, 2010

State may try to collect taxes on smokes

Associated Press Writer

BUFFALO — Gov. David Paterson is again positioning New York state to begin collecting taxes on cigarettes sold by Indian retailers, revisiting a budget issue perennially overshadowed by emotion.

The governor said Tuesday he would order his tax department to draft regulations to enforce a 2008 law intended to stop wholesalers from selling untaxed cigarettes to tribes.

That would force Indian retailers who currently don’t charge the state’s $2.75-per-pack excise tax and 4 percent sales tax to pay more to suppliers up front and ultimately raise their prices.

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