Cuomo tobacco tax grab fails

Adam  Smith's invisible hand slaps Andy Cuomo right in his budget.

A memo sent to members of the New York Association of Convenience Stores from the group’s president, Jim Calvin — a copy of which I have on my desk — said, “I got a call from Gov. Cuomo’s budget office yesterday. In examining cigarette tax receipts so far this fiscal year (April 1 to March 31) it looks like they will fall considerably short of their projection in new revenues. . . .”

The sale of nontaxed smokes by stores on Indian reservations became an issue two years ago when the state cigarette tax was raised significantly and many smokers took more of their business to reservations — or to Internet sellers — whose packs aren’t taxed. Some folks even bought lower-taxed cigs smuggled in from out of state.

The State of New York estimated that taxing Indian reservation cigarette sales at the wholesale level would bring in an additional $130 million.  It appears resourceful NY smokers made other plans.

Land trust denied

 

 BREAKING NEWS: Cayugas' Land Trust Is Denied 

Update: or is it only postponed?

In its statement the Interior Department did not articulate as to why federal officials reviewing the application considered it incomplete and added the Cayugas could resubmit the application.

The nation owns more than 1,000 acres in its ancestral homeland in both counties around the north end of Cayuga Lake. The tribe needs the land placed into federal trust to open a gaming facility similar to the Oneida Indians’ Turning Stone Resort Casino in Verona.

Cash-hungry Cuomo: non-Indian casinos OK

Non-Indian, "commercial" casinos will soon join the competition for New York residents' shrinking budgets.

Gov. Andrew Cuomo says his administration is actively investigating whether to bring commercial, non-Indian casinos and related gambling to New York.

By the time the graft has been distributed, New Yorkers can expect a net loss, to be made up with higher taxes. We should have gotten into the casino business in 1950.

Manufacturing returns to Seneca Falls

Don't write off our economy just yet.  Whether or not fracking ever happens, it appears manufacturing is making a comeback in the Finger Lakes region.  Finger Lakes Daily News reports:

The Cayuga Indian Nation of New York plans to begin manufacturing it's own brand of cigarettes later this year at the former Klionsky Scrap Metal property at 61 Ovid Street in Seneca Falls.

No need to wait for Andy Cuomo's expensive regional economic development councils.  Not subject to onerous New York regulations, not subsidized, not taxed, and producing a potentially deadly product, but a factory nonetheless.

Tribe calls for "illegal" tax-free shop to be shut down

 Following up on our recent post:

An Indian group that has battled for its rights to avoid paying state and local taxes on the items it sells now wants local authorities to shut down an operation by another Indian group.

The Cayuga Indian Nation is calling on Seneca County officials to enforce state tax laws against an out-of-state tribe.

YNN has the details. 

Once again, the conflict can be immediately resolved by allowing all New Yorkers to buy and sell tax-free.

"like a foreign tribe invading our land"

An Oklahoma tribe has recently opened the second tax-free tobacco and gasoline store in Seneca Falls.  The original Indian tax-free retailer in the area, Lake Side Trading, is not at all happy with the competition, reports the Finger Lakes Times:

SENECA FALLS — A second Indian tribe-owned gas station and convenience store has opened in Seneca Falls, a move that has the leader of the Cayuga Indian Nation questioning its legality and comparing it to a foreign invasion.

Named Sky Dancer, the store at East Bayard and Stevenson streets, is owned by the Seneca-Cayuga Tribe of Oklahoma and opened Wednesday.

The Cayuga Indian Nation purchased and opened the Lake Side Trading gas station and convenience store at Route 89 and Garden Street Extension in 2004.

Neither store charges sales tax on cigarettes or gasoline purchases, the source of ongoing federal court litigation.

The Oklahoma-based tribe is selling several brands of cigarettes it makes at its reservation cigarette-making facilities in the Miami, Okla. area, plus several name brands. The gasoline it sells is also from Oklahoma, provided by Eagle Fuels.

 Lake Side's tribal leader lets us know how he feels about the competition:

Clint Halftown, head of the Cayuga Nation, now based in Seneca Falls, is not thrilled by the new business.

“It’s wrong. They are not from here and have been in Oklahoma for a long time,“ Halftown said. “It’s like a foreign tribe invading our land. They are trespassing and I don’t think they are allowed by state tax law to sell tax-free cigarettes or gasoline.”

Emphasis added.  The New York Cayugas also operate a tax free store in King Ferry.  This development adds a new level of complexity to New York's long unresolved Indian tax issue.  

We suggest new governor Andy Cuomo remove sales tax on all gasoline and cigarettes, statewide.  This will resolve the Indian tax dispute while providing an immediate boost to New York's suffering economy.