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Albany - New York State Senator Michael F. Nozzolio today called on Governor Eliot Spitzer to enforce New York State law and begin collecting sales taxes on cigarettes sold by Native American retailers.

Under current law, cigarettes sold by Indians to non-Indians must include sales taxes. However, Indian businesses continue to refuse to pay the sales tax, causing an unfair advantage over competing retailers.

"It is very disconcerting that the State Department of Taxation still has not yet begun enforcing the law and collecting sales taxes from Indian owned businesses," said Senator Nozzolio.  "The current situation continues to cause an unfair economic disadvantage for our State's other retailers, particularly for those who operate their businesses near the Indian reservations."

"It is imperative that Governor Spitzer demand the State Tax Department begin the immediate collection of sales taxes from Native American owned businesses so that a level playing field is established for all merchants" continued Nozzolio

In a letter to Governor Spitzer, Senator Nozzolio reminded the Governor that his Executive budget included $200 million in revenues that were expected to come from the collection of sales taxes from Native American businesses this year.  The failure to collect the taxes could leave New York State at risk for a budget shortfall in the future.

Last year, Senator Nozzolio sponsored legislation that was signed into law requiring the State Department of Taxation and Finance to collect taxes on all retail sales by Native Americans to non-Native Americans.  Since taking office, the Governor has stalled steps to enforce the law.

"Governor Spitzer has the power to correct this inequity and order the Department of Taxation to begin the collection of these taxes.  This issue has a strong impact on the financial stability of our counties and local governments and on the ability of our local businesses to remain economically viable and competitive in our region.  As the State Senator representing the Finger Lakes region, I am calling upon Governor Spitzer to address this critical issue," concluded Nozzolio.


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