ALBANY -- Unless prevented by a pending lawsuit brought by the Seneca Nation in Federal Court, the State begins collecting revenue next Wednesday from a $4.35-per-pack sales tax on cigarettes sold by Native American retailers to non-Indian customers.
"There will be quite an uprising and protest". That's a quote from Governor Paterson's weekly radio appearance on WOR Thursday morning. Later that day, when speaking with us at the State Fair, the Governor sounded much less alarmist when asked if the State police was readying itself for violence.
While the Governor's expectations surrounding violent demonstrations seemed to change throughout the day, what didn't change was his administration's consistent message to the media about its intention to go ahead with the tax collection.
There is still a chance the administration and the tribes could come to a settlement allowing the tribes to tax cigarette sales themselves. While the state wouldn't see revenue from any tax parity agreements, convenience store owners near reservations could see a welcome uptick in business.
The state is counting on $150 million in revenue from these tax collections.
