State Tax Department Implements Emergency Regulations On Tax-Free Sales Of Cigarettes To Indians

ALBANY, NY (06/22/2010)(readMedia)-- New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward today announced the adoption of emergency regulations outlining amendments that implement significant changes enacted Monday regarding the sale of tax-free cigarettes to Indian reservations.

The regulations will ensure that an adequate quantity of tax-free cigarettes will be available for purchase for the use of each Indian nation or tribe and for the personal consumption of the nation's or tribe's members. At the same time, they will prevent the unlimited flow of tax-free cigarettes to reservation retailers.

The emergency regulations detail the dual statutory system for the delivery of an adequate supply of stamped, but tax-free cigarettes to Indian nations or tribes. The Indian nations or tribes may elect to participate in the Indian tax exemption coupon system, otherwise a system of prior Departmental approval will be used. Under both systems, the quantity of tax-free cigarettes is based on the probable demand of the Indian nations and their members and is determined by the Department based on Census data and federal consumption figures.

The regulations are effective immediately and apply to cigarettes sold to Indian nations and tribes on and after September 1, 2010.

A summary of the amendments and a link to the regulations is provided on the Department's website at www.nystax.gov.

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