More Tribes Make Own Cigarettes

JC Seneca is one of an increasing number of Indian businesspeople who are rolling and selling their own cigarettes, the Buffalo News reports. Recently, a federal court ruled that New York can collect taxes on cheap cigarettes sold by tribes to non-Indians, but a state judge issued a stay until June 1 on the order. Thus far, New York has not attempted to tax Native American-made cigarettes manufactured on tribal land.

"Right now, I'd say 70 to 75 percent of the discount cigarettes I sell in my smoke cigarettes shop are native-made," said Seneca. "That number keeps going up. More and more people are taking advantage of the bargain. This is the wave of the future for us."

Seneca prices his Senate, Gator or Buffalo packs for around $2, while Marlboros sell for more than twice that much at $5.30 per pack. In non-tribal shops required to collect state cigarette taxes, those same Marlboros ring up at more than $9 per pack.

James Calvin, president of the New York Association of Convenience Stores, thinks New York should tax Native American-manufactured cigarettes. "It's a matter of opinion, and eventually we believe it will come to the courts," he said. "As far as we're concerned, any cigarettes sold by Indians to non-Indians are taxable. …"We're just trying to make them compete on an even playing field, with everyone paying the same taxes."

Making and selling cheaper smokes is a lucrative business for tribes. Seneca's Six Nations Manufacturing plant turns out 15.6 million cigarette packs annually, some of which he ships to other states. He does pay federal cigarette excise taxes on each carton he makes.

Todays Note: Armada site web.

Comments

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