New York Fight Keeps Court Dockets Smoking

I’ve often said that I believe that the behaviors associated with sales tax rates are overstated. I actually don’t believe that folks will drive across the border from Pennsylvania to Delaware to avoid sales tax on a roll of paper towels or a magazine. And despite the hue and cry otherwise, I don’t believe that otherwise rational North Carolinians will head to South Carolina in order to save a mere .75% on the cost of a pair of sneakers – especially with the cost of gas these days.

But I am willing to eat my words when it comes to cigarettes.

Last year, New York boosted its tax on cigarettes by $1.60, pushing the average price of cigarettes to $9.20 per pack , or $11 per pack in New York City. That makes smoking in New York quite the commitment.

However, you don’t have to pay the $4.35 per pack tax – the highest in the country – if you shop in one of the Indian nations in the state. A pack a day smoker would save nearly $1600 per year by buying cigarettes from one of the Indian nations rather than from a local convenience store. You can imagine that this fact has not gone unnoticed by non-Indian nation cigarette retailers.

This has also not gone unnoticed from New York taxing authorities who estimate that they are losing up to $500,000 per day (yes, per day) in foregone revenue.

For years now, the state of New York has talked about taxing cigarettes sold by Indian Nations. Those nations, in particular, the Seneca Nation of Indians in New York, have vehemently opposed attempts to impose taxes, claiming that they have sovereignty (and thus immunity from taxation) and are protected by existing treaties . Those arguments have failed in New York Courts as far back as the 1990s.

In 1997, the state of New York made a significant effort to enforce the collection of taxes on cigarettes. Members of the Seneca Nation shut down roads by marching and burning tires in protest . The riots were successful and the state backed off its attempts to collect the tax. Apparently, it wasn’t worth it.

Cut to a bad economy and a gaping hole in the state budget. As legislators more recently looked around for a fix to the deficit, they considered all sorts of options from taxing soda to taxing wine .

And then they remembered: there’s that matter of collecting taxes on cigarettes. So last year, the legislature voted to try to enforce the collection of the tax effective September 1, 2010, despite one Indian chief referring to the move as an “act of war.

Democratic Events this Week in South Carolina

Capitol Consulting Strategies , a non partisan political consulting and government relations firm, is hosting a legislative forum on Thursday, June 23, 6 PM at the Cecil Tillis Center, 2111 Simpkins Ln, Columbia. Event is free and the panel topic will be a summary and analysis of the current legislative session in the General Assembly. For more information contact info@mycapitolconsulting.com The York County Democratic Women's Council will hold its inaugural meeting on Saturday, June 25, 10 AM at Golden Corral, 1031 Anderson Rd N, Rock Hill. Guest Speakers include Cherie Mabrey, President of South Carolina Democratic Women's Council; Kayla Mallett, Organizing for America; and Amanda Loveday, South Carolina Democratic Party. Get involved from the beginning. All invited and welcome.

South Carolina Indians, More from the Past & the Present

South Carolina Indians

The Indians of South Carolina

South Carolina Indians (Paperback)

History of the Indian Tribes of the United States, Their Present Condition and Prospects, and a Sketch of Their Ancient Status