Mix of Skepticism and Hope Over Governor Paterson's Tax Fairness Initiative

• by New York Association of Convenience Stores

ALBANY, NY (01/19/2010)(readMedia)-- Statement by James Calvin, President, New York Association of Convenience Stores, on Governor Paterson's budget message concerning plans to start enforcing an existing state law requiring collection of taxes on Native American sales of cigarettes to non-Indian customers:

"Fifteen years of delay and deceit have taught us to be skeptical of any new promises from the Capitol on the tax fairness issue.

"However, no one can question Governor Paterson's sincerity in wanting to resolve this long-standing dilemma he inherited. We applaud his commitment to fully and fairly enforcing the tax collection law, and our stores are eager to help New York State collect all the tax revenue it is entitled to.

"It would be a mistake, however, for the State to further increase the cigarette tax rate prior to commencing enforcement, because that would only make the current tax evasion epidemic worse, as the last three tax increases clearly have done. First things first. Enforce the law, recapture the hundreds of millions of dollars in cigarette tax revenue that is escaping at the current rate, and then examine whether any change in the rate is really necessary."

Other resources on the tax fairness issue:

15-Year Chronology of NYS Tax Evasion/Enforcement Issue: www.nyacs.org/documents/15-yearchronology.pdf

Economist: Cigarette Tax Evasion Costing NY $1 Billion a Year: www.nyacs.org/documents/09OConnortaxstudyupdate.pdf

NYACS White Paper on the Tax Fairness Issue: www.nyacs.org/documents/PerspectivesBook.pdf