Senator John Flanagan (2nd Senate District) recently supported a measure to require the collection of sales taxes on tobacco products sold to non-Indians at Indian-owned businesses. The legislation, which has now passed both the Senate and the Assembly, will now be sent to Governor David Paterson for approval. Currently, tobacco manufacturers are legally permitted to sell tobacco products to stamping agents who sell these untaxed cigarettes to vendors on Indian reservations. Although these untaxed cigarettes are intended solely for use by those on the reservation, much of this untaxed product is being sold to non-Indians in Indian stores and via the Internet. The measure that Senator Flanagan supports would require that manufacturers who provide unstamped cigarettes to Indian-owned businesses confirm that these untaxed cigarettes will only be sold to other Indians on the reservation. The business could prove their compliance by providing certification under penalty of perjury to the manufacturer. Under current law, the collection of sales and excise taxes on the sale of tobacco products to non-Indians at Indian owned businesses is mandated. However, the Department of Taxation and Finance has not collected these taxes and it is estimated that this lack of enforcement results in a yearly loss of $400 million in state revenue. "Many businesses are extremely diligent about complying with the tax code and they are being unfairly penalized when others are allowed to disregard those same laws,” stated Senator Flanagan. “Our state has a responsibility to enforce the laws equally to ensure fairness and this commonsense approach will do just that and level the playing field. Equally as important, this change will bring millions in needed revenue to our state. This is a measure that Governor Paterson should sign into law as soon as possible for the good of our small business owners and all of our residents.” TO SEND AN E-MAIL TO SENATOR FLANAGAN, PLEASE CLICK HEREIF YOU WOULD LIKE TO RECEIVE REGULAR UPDATES FROM SENATOR FLANAGAN, PLEASE CLICK HERE
Currently, tobacco manufacturers are legally permitted to sell tobacco products to stamping agents who sell these untaxed cigarettes to vendors on Indian reservations. Although these untaxed cigarettes are intended solely for use by those on the reservation, much of this untaxed product is being sold to non-Indians in Indian stores and via the Internet.
The measure that Senator Flanagan supports would require that manufacturers who provide unstamped cigarettes to Indian-owned businesses confirm that these untaxed cigarettes will only be sold to other Indians on the reservation. The business could prove their compliance by providing certification under penalty of perjury to the manufacturer.
Under current law, the collection of sales and excise taxes on the sale of tobacco products to non-Indians at Indian owned businesses is mandated. However, the Department of Taxation and Finance has not collected these taxes and it is estimated that this lack of enforcement results in a yearly loss of $400 million in state revenue.
"Many businesses are extremely diligent about complying with the tax code and they are being unfairly penalized when others are allowed to disregard those same laws,” stated Senator Flanagan. “Our state has a responsibility to enforce the laws equally to ensure fairness and this commonsense approach will do just that and level the playing field. Equally as important, this change will bring millions in needed revenue to our state. This is a measure that Governor Paterson should sign into law as soon as possible for the good of our small business owners and all of our residents.”
TO SEND AN E-MAIL TO SENATOR FLANAGAN, PLEASE CLICK HEREIF YOU WOULD LIKE TO RECEIVE REGULAR UPDATES FROM SENATOR FLANAGAN, PLEASE CLICK HERE
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