UNITED STATES
Tax crackdown on Indian cigarettes

New York's renewed effort to collect taxes on cigarettes and tobacco products sold by Indian-operated companies has led to seizures of USD 1.2 million (EUR 0.85 million) worth of untaxed tobacco products in the last three weeks outside Indian land.

Inspections at 357 retailers by state and federal law enforcement resulted in the confiscation of almost 20,000 cartons of cigarettes and nearly 25,000 cigars, Lt. Gov. Robert Duffy said Friday.
The inspections – being the first step in a new enforcement program that is expected to bring USD 27 million in tax revenue to the state this fiscal year – included off-reservation Indian shops and non-Indians selling untaxed Indian tobacco products.
Friday's announcement follows nearly two decades of failed efforts to tax Indian cigarettes, but courts have sided with New York in its current effort to collect taxes from wholesalers and in distribution off the reservations.
Future steps could include trying to collect taxes on the growing trade in cigarettes manufactured by Indian-owned companies. Tribes, citing federal treaties guaranteeing their sovereignty, argue they are exempt from taxation. (pi)

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