UPDATED: Tax on Tabacco Sold on Indian Reservations - Unjust, Unnecessary and Unconstitutional

Since Wednesday morning, March 1 police have been seen on the Poospatuck Reservation in Mastic. The NY State Dept of Taxation has stated they are awaiting action of the legislature before attempting to enforce a law which would require non-natives to pay a tax on tobacco and
gasoline purchased on Native land. Nevertheless both NY State and Suffolk County police are patrolling on the reservation of the Unkechaugs. A substantial number of people on the reservation owe their livlihood to the businesses which sell tax-free cigarettes.

The New York tax law amended in 2005 and scheduled to be enforced starting March 1 would impose the state cigarette tax of $1.50 per pack on cigarettes as well as taxes on gasoline and diesel fuel sold to non-natives on Indian Reservations recognized by the state.

This law is unjust, unnecessary and unconstitutional.

It is unjust because it would eliminate the income of many families of Long Island's two state-recognized Native American tribes. These workers have few alternatives in a low wage economy.

The tax law change would increase the profits of already thriving convenience store businesses while eliminating native-owned businesses.

Efforts to expand the economy on the Shinnecock Reservation have been frustrated by those lobbying to prevent Federal recognition and the benefits from Federal programs which would ensue.

Imposition of the tax is unnecessary because the savings to New York State, estimated at $40 million by the State Department of Taxation would be offset by the increased cost of welfare. In fact there may be a net cost to the state's taxpayers.

It is unconstitutional because it violates the principle of sovereignty of Native tribes guaranteed by the U.S. Constitution and by New York State recognition.