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Spitzer to Seek Tobacco Taxes from Tribes

New York Gov. Eliot Spitzer said that he plans to collect tobacco taxes from Native American tribes that sell cigarettes from reservations around the state, reversing the position of former Gov. George Pataki.

The Buffalo News reported Jan. 9 that Spitzer restated his position after a state judge ruled that the state could not enforce a 2005 law providing for taxation of tobacco sold on tribal lands. Spitzer said his administration would seek a way around the preliminary injunction issued by the Buffalo judge. The law took effect on March 1, 2005 but was never enforced by the Pataki administration.

"I believe in both a level playing field with respect to competition in the marketplace in terms of sales of the product at issue and also believe in appropriate respect for the sovereign nations," said Spitzer. "But I believe the statute passed several years ago is an appropriate statute, so we will be moving forward."

If enforced, the law could generate more than $1 billion in tax revenues for the state. But lawyers for the Seneca tribe contend that New York State has no civil tax regulatory authority on reservations.

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