NY Cigarette Tax Legislation Approved — Will Tribes Negotiate, Sue or Protest?

If the state of New York thinks collecting $150 million in revenue from the new tax imposed on cigarettes sold on Indian reservations is a sure thing, it could be in for a surprise.

The new law, approved on Monday, makes cigarettes sold on reservations to non-Indians taxable. It also increased the per/pack tax by $1.60, bringing the total per/pack tax statewide to over $5.00, and upped the tax on all other tobacco products to 75 percent of the retail price. The law goes into effect on Sept. 1.

The governor's office has the power to negotiate tax-collection plans directly with the tribal leaders, according to a story published by WGRZ-TV in Buffalo on June 23, and at least one tribe, the Oneida, appears willing to negotiate.

Although tribal leaders don’t want to take the state to court, failure to negotiate an agreement that works for both sides may leave them no choice.

There is always the chance too that tribal people could react as they did when the state tried to enforce such a tax in 1997: with protests.

"The big unknown is how the people on the reservations will react," Robert Batson, a lawyer-in-residence at Albany Law School's Government Law Center, told WGRZ. "It's a matter of whether they'll react like they did 13 years ago or if they'll accept it or if they make another legal challenge."

Mohawk Protest Could Lead to Permanent Closure of Border Crossing

The Seaway International Bridge, which spans the St. Lawrence River and links Canada to the United State along the northern border of New York State, could be closed permanently unless Akwesasne Mohawk Indians accept the Canadian government’s decision to arm border guards at the crossing. 

Speaking on a Canadian news program yesterday, Peter Van Loan, Canada’s Public Safety Minister, said there would be no exceptions to the decision and federal officials were considering several options, including moving the border crossing to another location. The crossing at Cornwall Island, which is Mohawk land, handles about 2.4 million passengers a year.

Canada Border Services Agency workers left their posts on Cornwall Island, citing safety concerns, just before midnight May 31 in advance of an Akwesasne Mohawk protest.  Protesters say they are worried that arming guards could lead to violence on their land.  Read more here.