Squanto wrote:
People don't understand the laws involved.
The Buffalo Creek treaty of 1842 says that the Senecas will not be taxed by the NY government. The state IS NOT TRYING TO TAX THE SENECA PEOPLE.
Under existing NYS tax law, if you buy something outside of NYS, and bring it into NYS, you're supposed to pay taxes on that. This is a commonly ignored law, but it's a law regardless.
For example, let's say you go to PA, and purchased a TV at a 0% tax sale. You take that TV back to your home in NY. By law, you're required to pay NY state sales tax on that TV even though you didn't buy it in NY.
Now, almost nobody actually claims this and pays the tax. I'm sure some businesses do, because of the volume of goods they move, but most individuals don't.
Let's turn to tobacco. We all know that the state taxes the snot out of tobacco products. When you go to a reservation, you don't pay that tax. Remember that the reservations are technically sovereign territory, and thusly NOT part of NYS. So, you're purchasing a product outside of NY (on the res) and bringing it back into NY. By definition, you're supposed to claim that on your taxes, and pay the tax that you didn't pay on the reservation. Obviously, nobody does this.
So, the state passed a law that says Native American tobacco retailers are required to collect these unpaid taxes from anyone who isn't a registered Native American. They basically said "Well, we can't enforce our own tax laws, so we want you do."
THAT is the crux of the problem. At no time are Native Americans being taxed, or any parts of the Buffalo Creek treaty being violated. The Senecas know that their rights are not being infringed, but they know if non-Native Americans are forced to pay taxes on gas/tobacco (that they are legally required to anyways), they'll lose their competitive advantage in those markets. They also object (and rightfully so) to being a tax collection arm for the NY government.
They can scream about honoring treaties all they want, but this has nothing to do with sovereignty rights. It's 100% about maintaining their competitive advantage in the tobacco and petroleum markets.
Excellent post, Squanto (or should we call you Tisquantum?).
Since Indian tribes are treated as quasi-nations, my question for Gov. P is will he also force Canada to collect sales tax for NY, as well? Lots of folks go there and purchase goods and services (including health care and prescriptions) and they probably don't pay NY tax on those items.