Paterson Vows to Collect Cigarette Taxes

Governor David Paterson is promising to start collecting state taxes next week on cigarettes sold by American Indian retail businesses to most smokers in New York.

Paterson says taxes will be collected from wholesalers sending cigarettes to the tribes starting on Wednesday.

The tax is expected to generate about $200 million a year in revenues for the state.

The Seneca and Mohawk tribes are seeking federal court orders to stop the collection, claiming it would violate their rights.

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