Paterson signs Indian cigarette tax bill

Story Created: Dec 15, 2008 at 11:07 AM EST

Story Updated: Dec 15, 2008 at 6:13 PM EST

UTICA, N.Y. (AP) - 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 Monday.

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 won't be resold tax-free. The state excise tax is $2.75 per pack.

(Copyright 2008 by The Associated Press. All Rights Reserved.)
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