Politicians propose delay of cigarette tax boost

Syracuse (WSYR-TV) - A State Senator and Assembly Member are pushing legislation that would delay the collection of the latest $1.60 sales tax increase on cigarettes. The delay would last until the State begins to collect tax on tobacco sold on reservations to non-Indians.

The proposal is being pushed by State Senator Joe Griffo and Assembly Republican Leader Kolb.
 
State and federal judges have temporarily halted the collection of the tobacco sales tax on reservations until pending lawsuits by a number of Indian Nations are settled. The idea behind the proposed legislation is that a tax reduction would keep small businesses competitive with their reservation-based counterparts while the suits are resolved.
 
The sales tax on cigarettes now stands at $4.35. This proposal, which must be approved by the Senate and Assembly, would reduce that tax to $2.75. Henry Shah of the North Salina Cigar Store says a reduction in the tax would help his business. "They definitely need to take it away because it is killing our business. We used to sell like 70 to 80 cartons a week. We're down to like 40 cartons a week," he said.
 
The sales tax collection on cigarettes sold on reservations to non-Indians was originally set to take effect on September 1 as part of the State's 2010-11 budget.