ALBANY (AP) - A Congressman claims New York's practice of
not collecting taxes on Indian cigarette sales supports smugglers
whose profits can support terrorists.

Peter King, a Long Island Republican, wants an investigation into what he calls a "very serious homeland security issue." A prominent Indian leader called the charges "overblown and underdocumented."

New York doesn't collect taxes on cigarettes sold on Indian land. Many Indians believe the tax would violate their sovereignty. Attempts to collect tax a decade ago led to violent clashes between state police and the Seneca Indian Nation in western New York.

Critics claim that by refusing to levy the tax, the state misses out on hundreds of millions in revenue and puts convenience stores near Indian land at a disadvantage.

King released a report Tuesday by the Republican staff of the House Committee on Homeland Security that said it's also a security issue because smugglers in New York rely on tax-free cigarettes from Indian reservations.

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