Paterson Signs Bill to Enforce Cigarette Tax Collection

Jen Chung

Published Dec 16, 2008

Modified Dec 16, 2008

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Jen Chung

Published Dec 16, 2008

Modified Dec 16, 2008

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In an effort to add to the state's coffers, Governor Paterson signed a law into bill that will "enforce the collection of excise taxes on cigarettes sold at Indian-owned stores." The bill requires manufacturers to have the state tax stamp on its tobacco products before selling them to retailers. The excise tax is $2.75, and it's expected that the bill will bring $400 million more in revenue. While, Indian tribes feel the move will hurt them, as smokers won't head to their stores to buy cigarettes any more, Governor Paterson pointed out the law has always stood, it just hasn't been "adequately applied for far too long" and gave" non-Indians easy access to tax-free cigarettes both on the reservations and over the internet." Mayor Bloomberg, who has sued over the untaxed cigarettes, is happy: "The bottom line is everybody should be paying taxes on cigarettes."