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Interstate Trade from the States with Low Taxes
Interstate Trade from Indian Reservation
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Tax Commissioner Andrew S. Eristoff told lawmakers about his proposed regulations mirror a similar rule his agency killed last year over the opposition of the State Legislature, health groups and non-Indian retailers. The new rules, which have not yet been publicly released, are also similar to legislation passed last week as a part of the state budget, ordering Eristoff's agency to collect what lawmakers believe is at least $400 million a year in taxes from sales by Indian smoke and gasoline shops and Internet sites. The new budget provision is the third straight year that the Legislature has ordered Gov. George E. Pataki to collect the tax an edict the governor, citing Indian sovereignty, has ignored.
Finally, USA DOJ said that it also could not locate any case law applying the analysis to the Jenkins Act, and DOJ generally concluded that an Indian tribe may be subject to the act's requirements. DOJ noted, however, that considering the lack of case law on this issue, this conclusion is somewhat speculative. ATF has stated that sales or shipments of cigarettes from Native American reservations are not exempt from the requirements of the Jenkins Act ( ).
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