NY Won't Try to Collect Taxes on Indian Cigarette Sales -- For Now

New York State has decided to hold off on a plan to collect taxes on sales of cigarettes by Indian retailers.

According to the budget earlier this year, the state had expected to collect $65 million from taxing cigarettes sold to non-Indians in smoke shops, though the mail and over the Internet.

But the Paterson administration has now eliminated the $65 million from the budget.

Seneca Nation of Indians retailers lead the country in the sales of untaxed cigarettes.

NYS Division of the Budget

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