Paterson Signs Cigarette Tax Bill

Gov. David Paterson has signed a bill to enforce collection of excise taxes on cigarettes sold at Indian-owned stores.

Paterson traveled to Utica to sign the measure earlier today.

Supporters believe collecting the tax would bring the state more than $62 million a year at a time Paterson is projecting budget deficits of tens of billions of dollars over the next few years.

Indian tribes view the law as an attack on their sovereignty and financial well-being.

The law prohibits manufacturers from selling tobacco products without a state tax stamp to any wholesaler that doesn't certify the cigarettes wont be resold tax-free. The state excise tax is $2.75 per pack.

State Senator Cathy Young is urging Paterson and the Seneca Nation to undertake discussions to find a peaceful and productive resolution to their differences.

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