Governor Burns Senecas

Governor Burns Senecas

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We'll let this one stand as it is. The following is a press release issued from the Seneca Nation of indians in response to Governor David Paterson's signing of a bill that will allow the state to collect tax on the sale of Indian cigarettes to non-Indians. The state stands to collect nearly $60 million per year on an excise tax that is $2.75/pack.

The Seneca statement:

Seneca Nation Will Act Against Recent State Attack
President Snyder says law ignores treaties

The Seneca Nation of Indians will explore all of its options after Governor David A. Paterson today signed into state law a bill that threatens the Nation’s treaty rights and 1,000 retailing jobs in Western New York.

“This action is a threat to the Seneca Nation and we have no choice but to explore all of our options,” said Barry E. Snyder, Sr., Seneca Nation President. “Attacking tax-free commerce in our territories is short-sighted and disastrous for us and all of Western New York.”

“The Nation has a complicated and intertwined relationship with the State. Since this is the direction that the Governor wants to take things, then we have no choice but revisit every aspect of our relationship with the State.”

“This bill does not go into effect for 60 days. The Seneca people and our patrons should know that the Council and I are working diligently right now on our action plan. The issue here is not cigarettes, but the protection of the Nation’s treaty rights. We will do what it takes at the right time to protect those rights.” “Because our Nation believes that diplomacy is always the best path when governments are in dispute, I have invited Governor Paterson to our historic territory to discuss how this problem can be resolved in a matter respectful of our treaties,” said President Snyder.

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What Others Have To Say

  1. Biniszkiewicz

    0 ratings12345
    Dec 15th 2008, 15:15

    it's about time the state got serious about collecting taxes on sales to non natives. Why give native populations unfair business advantages for which no one else qualifies? All we do in the current set up is give a huge incentive to all buyers to shop at native stores instead of those which collect taxes. Level the playing field.

  2. clafleur

    0 ratings12345
    Dec 15th 2008, 15:17

    All financial issues aside, I hope that this has as large an impact on smoking as it possibly could. Now, realistically, the Senecas are going to fight this for God knows how long, and it probably won't even come into action. "The issue here is not cigarettes, but the protection of the Nation’s treaty rights. We will do what it takes at the right time to protect those rights.” This is bull, it's all about money.

  3. Colin

    1 ratings12345
    Dec 15th 2008, 15:18

    On a previous thread, someone mentioned that these treaties don't cover sales to non-Indians. Does anyone know if that's the case?

  4. TheWhyNotGuy

    1 ratings12345
    Dec 15th 2008, 15:43

    If I purchase a pack of cigarettes in Canada, New York State can't collect sales tax on my purchase. I don't see how this is any different.

  5. jamesbflo

    3 ratings12345
    Dec 15th 2008, 15:47

    new york state doesnt pay for roads in canada either.

  6. SushiaGSG

    2 ratings12345
    Dec 15th 2008, 15:48

    The issue here is about the government's greed and their thought of an easy way out of the state debt crisis. The amount may not cover all of it but something to help out. The fact that state and national goverment does not honor the treaties made by past leaders does not speak well of our nation and much more respect should be shown to the first people that were here and that are still here.

  7. oldwaiter

    2 ratings12345
    Dec 15th 2008, 16:00

    This is just about as stupid as Paterson's so called "Obesity Tax." It is a tax on all non-diet sodas and will generate an estimated $404 million dollars a year (milk, juice, diet soda, and bottled water would be exempt.) New York State needs to tax the Indians, soda makers, etc. because Paterson wants to increase welfare payments and expand social services. Someone has to pay and it begins with the Indians!

  8. Colin

    2 ratings12345
    Dec 15th 2008, 16:15

    In a previous thread on this subject, the poster "NewBeginning" wrote:

    "Before I discuss the tax let me make it clear that this tax would only apply to those who are not Native Americans. If someone who lives on the reservation were to pay some sort of tax that individual would be given a rebate. So this tax only applies to those who live OFF the reservation. In the early 1990s the US Supreme Court, yes the highest court in the land, voted UNANIMOUSLY that this tax free business being done on the reservations was illegal. Amazing that the most conservative and the most liberal justices agreed on this decision. In the treaty of whatever year it was, it said SPECIFICALLY that tax free business be done ONLY between Native Americans. Tax free transactions are prohibited under this treaty between Native Americans and "white men." Furthermore, the US Supreme Court said that those who are not Native Americans, but go to these reservations to purchase tax free goods are guilty of tax evasion. These transactions are therefore ILLEGAL"

    If this is correct -- and I don't know whether it is or not -- sales to non-Indians are taxable. Does anyone have particular knowledge of the issue? In other words, something beyond "honor the treaties" or "you can't tax the Indians."

  9. wingking

    1 ratings12345
    Dec 15th 2008, 16:48

    Something tells me the casino is about to get pushed through.

  10. Buffalo21stcentury

    2 ratings12345
    Dec 15th 2008, 17:59

    Well, the long term impact of empire zones may be bad for Buffalo and WNY but it remains to be seen how and what new form economic developed incentives for our area will be restructured.

    However, taking sales to non-natives effectively eliminates the near monopoly of unfair and unregulated tax free businesses....which isnt the end ofthe world for indian small business...it just means that those businesses will be competing fairly. DOES ANYONE KNOW HOW MANY GOVERNORS AND ATTORNEY GENERALS HAVE NOT HAD THE GUTS TO COLLECT THESE TAXES ON INDIANS AND ALLOWED UNFAIR COMPETITION TO PLAGUE PEOPLE WHO ARE PATRIOTIC NYS CITIZENS BY THOSE WHO NOT ONLY DONT CONSIDER THEMSELVES NYS CITIZENS BUT US CITIZENS.

    Unless Paterson does a major screw up...having the courage to tax indians alone gets him my vote.

    PS and yes taxing indians is going to raise the priority of the Buffalo Casino and the other casinos.

    Now, if NYS can collect sales taxes on cigarettes to non-natives then shouldnt they be able to collect sales taxes on gasoline, hotel rooms, buffets, entertainment tickets, parking, ... and basically all sales transactions to non-natives even on reservation such as casinos. I expect as the budget crisis worsens ... the pressure to collect sales taxes on more than just cigarettes will gain momentum....especially since Buffalo and NYS only have an agreement to share slot revenue for 15 years....after 15 years the loss of that slot revenue is going to either extended or replaced with sales taxes.

  11. whynot

    2 ratings12345
    Dec 15th 2008, 18:05

    Colin - This may only apply to non-Native Americans who are buying gas and tobacco on the reservation; however the non-natives make up the majority of the customer base for these businesses. Maybe if the State woke the f... up and realized that people will drive 30 minutes out of their way to avoid paying the exorbitant taxes that the State of New York has imposed on people, then we wouldn't be in this mess. Maybe the State of New York could right size the government and eliminate some of the unregulated Authorities, the outlandish usage fees, and other expenses that the people of New York are expected to shoulder. Maybe the State should look at the State spending instead of breaking treaties and continuing the centuries of abuse, racism, and discrimination against the Native Americans.

    Take their land, force them to move to reservations at the point of a gun, kill tens of thousands of them in mass genocide,remove the children to be adopted by 'white families', build thruways and canals through their assigned reservations without compensation, remove every viable means of business and commerce, and then we wonder why they are pissed off. The Native Americans are the most impoverished group of people in America. Spend some time on a reservation with the Native Americans, learn about how they really live, and then make your comments about how the Supreme Court decided blah, blah, blah.

    I hope they shut off the reservations to all outsiders. Close off the New York Thruway and the roads to Niagara Falls. Shut down route 81 and 17, and wait for the State of New York to bully the Native Americans once again by bringing in the military and state police.

    New York state should be ashamed of themselves.

  12. skarnath

    1 ratings12345
    Dec 15th 2008, 18:17

    Supreme Court Justice William Rehnquist in: Moe v. Salish & Kootenai Tribes (1976): "To the extent that the on-reservation "smoke shops" sell to non-Indians upon whom the State has validly imposed a sales tax with respect to the article sold, the State may require the Indian proprietor simply to add the tax to the sales price, and thereby aid the State's collection and enforcement of the tax. Such a requirement is a minimal burden designed to avoid the likelihood that, in its absence, non-Indians purchasing from the tribal seller will avoid payment of a lawful tax, and it does not frustrate tribal self-government or run afoul of any federal statute dealing with reservation Indians' affairs."

    Supreme Court Justice John Paul Stevens in: Department of Taxation & Finance of N.Y. v. Milhelm Attea & Bros. (1994): "Because we conclude that New York's cigarette enforcement regulations (which require the collection of a sales tax from non-Indians) do not, on their face, violate the Indian Trader Statutes, the judgment of the New York Court of Appeals is reversed."

    It appears to me that New York State has not had the political will to enforce the 1994 decision.

  13. Colin

    0 ratings12345
    Dec 15th 2008, 18:25

    whynot --

    The treaty either does or doesn't say that sales to whites are taxable. From the evidence presented, it's seeming more and more like they are. All along, the native position has been "honor our treaties." Or was it actually "honor the parts of treaties that benefit us, but not those that hurt us?"

    And I think you're right -- unless the state backs off, this will be settled with force.

  14. InformedOne

    2 ratings12345
    Dec 15th 2008, 18:35

    The cigarettes that people purchase tax-free contribute to lung cancer and other health related issues. Folks with emphysema, lung cancer, tumors,children with birth defects resulting form inhaling cacinogens..all seek services and health care delivery from our hospitals. Do tax free cigarette sales contribute any funds to address these health service costs? Of course not!!!

    Similar to the question do tax free sales contribute to road maintenance? Of course not.

    It is time to level the playing field on these tax free sales of cigarettes and gasoline also. The deficit will be made up somewhere and it should be across the board based on consumption, not by proximity to a reservation.

    Let the tire burning begin and the lawless face their day in the halls of justice!

  15. NewBuffalo

    2 ratings12345
    Dec 15th 2008, 18:46

    Next is:

    the obesity tax

    cow fart tax (methane killing ozone)

    this is getting insane

    balance the stupid budget!

  16. Assaroni

    1 ratings12345
    Dec 15th 2008, 19:00

    what about the bird migration tax for hi rises and bridges?

  17. skarnath

    2 ratings12345
    Dec 15th 2008, 20:16

    Under the "Treaty with the Seneca, 1842" & the subsequent "Treaty with the Seneca, Tonawanda Band, 1857" the Seneca's were paid $458,000 for the land comprising the Cattaraugus, the Allegany, the Buffalo Creek & the Tonawanda Reservations. According to one way of measuring worth of dollars over time, that's almost $4 billion dollars in 2008.

    In 1954 the Thruway paid the Seneca Nation $75,000 for an easement to build the Thruway through the Cattaraugus Reservation. Sounds like a small amount of money but it was on top of what was paid to the individual property owners. And it's worth between $500,000 and $2.7 million in today's dollars. Whether it was a fair deal or not is open to debate, but the point is that the Seneca's agreed to it. Do they want to re-open those negotiations, which apparently took almost 8 years? No - they want to claim that they have the sovereign right to shut down the Thruway.

    Last year the Seneca's made $100 million (net profit) on their 3 casinos, according to their SEC filings. I'm beginning to think they are more interested in paying Zogby International to do "push polls" showing that the majority of New Yorkers want the the state to "honor Indian Treaties" (an elusive subject) than to engage in a serious public discussion of the issues. Where is the honor in that?

  18. NBJOHN

    3 ratings12345
    Dec 15th 2008, 20:21

    Can't the Seneca's just hold back Casino payments to the State and municipalities?

    I have to admit.... In every debate, Casino (I don't gamble) and Cigarettes (I don't smoke) - I pulling for the Seneca's.

  19. Colin

    1 ratings12345
    Dec 15th 2008, 22:39

    So unless someone can point out where in these treaties it says that the Senecas can sell tax-free to non-Indians, there is really no argument to be had here.

  20. InformedOne

    2 ratings12345
    Dec 16th 2008, 09:00

    If there was a group selling highly addictive greasy food (containing addicting drugs) tax free and making a bunch of people fat and sick and in need of government supported health care...why wouldn't we argue there had ought to be a tax.

    People make bad lifestyle choices like smoking. I assume you are one of the informed that agree with the jury that cigarettes cause health problems and cancers (it says so on the pack..I would imagine the only way you could disagree with my argument is you are a smoker). Why should I (a non-smoker) pay for added health care costs as a result of tax-free cigarette smoking for folks not contributing to the health care pot based on their consumption.

    Methane burping cows..natural occurence, no problem. Highly addictive carcinogenic lung dart consumption? Pay a tax for your degenerative behavior and burden on the health care system!

  21. MJWorthington

    0 ratings12345
    Dec 16th 2008, 12:44

    Yes, lets reduce our tax load to reservation levels so we can live on an indian reservation too. ;)

    If this is true and does get extended to other types of buisnesses, there may actually be an even playing field too allow other complimentary buisnesses to grow up around the casinos.

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