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Governor Paterson puts out cigarette tax

By By MIKE LaFAVE

Story Created: Aug 19, 2009 at 3:37 PM EST

Story Updated: Aug 20, 2009 at 1:37 PM EST

ALBANY, N.Y. (WKTV) - Governor David Paterson has decided against pursuing cigarette taxes collected by American Indian retailers.

Back in April, the governor agreed to a budget that projected revenue of $65 million from taxing cigarettes sold to non-Indians from reservation-based businesses.

Now, the administration has removed that money from it's budget and says it won't begin collecting the tax until at least April 1, 2010. Local officials are far from pleased with the governor's decision.

Meanwhile, a spokesperson for the Oneida Indian Nation says they do not get involved in the tax matters of "other governments."

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