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Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2401
Title of bill
An act to amend the tax law, in relation to taxes on cigarettes sold on an Indian reservation to non-members of the Indian nation or tribe
Purpose
This bill temporarily suspends the $1.60 cigarette tax increase until the state begins collecting taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or Tribe.
Summary of provisions
Amends section 471 of the Tax Law by adding language to temporarily suspend the $1.60 cigarette tax increase until the state begins collecting taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or Tribe. If the state fails to collect the tax, this bill would impose the cigarette tax at $2.75; once the state begins collecting, the cigarette tax rate would be imposed at $4.35.
Justification
Chapter 134 of the Laws of 2010 (Emergency Spending Bill), raised various taxes, including a $1.60 cigarette tax increase beginning July 1, 2010, and set a firm deadline of September 1, 2010 to begin collecting taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or Tribe. On July 1st, the cigarette tax increase went into effect. However, on the September 1st deadline to collect taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or Tribe, Indian nations filed suits in state and federal courts. The courts responded by temporarily halting the September 1st collection date. The current cigarette tax increase and the subsequent failure of the State to collect taxes has only widened the gap of inequity between retailers and Indian nation sellers. It is not fair to uphold one part of Chapter 134 of the Laws of 2010 and yet temporarily halt another part of the law. Consequently, this bill aims to uphold fairness by temporarily suspending the $1.60 cigarette tax increase until the State begins collecting taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or tribe.
Legislative history
2011-12 S. 2008a - Investigations & Government Operations/A. 1101a - Ways and Means
Fiscal implications
The fiscal impact is dependent upon the State collecting taxes on cigarettes sold on an Indian Reservation to nonmembers of the Indian Nation or tribe. The 2010-11 State fiscal year financial plan assumed the collection of $114 million in taxes from Indian reservation sales to non-Indians and $260 million in additional revenue from the increase in the excise tax of $1.60 per pack of 20 cigarettes.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.