Cigarette-tax policy on reservations called a local loss

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October 28, 2009

<img src="/homepage/images_image_276103054" alt="">  Mohawks cite $95 million local impact, enhanced by tax-free cigarette sales

By DENISE A. RAYMO The Press Republican Wed Oct 28, 2009, 11:28 PM EDT

AKWESASNE — The $119 million economic impact of the St. Regis Mohawk Tribe could plummet if the state begins taxing on-reservation cigarette sales, Mohawk officials say.

It could cost jobs, reduce slot-machine-revenue sharing to Franklin and St. Lawrence counties and damage the overall North Country economy.

And this week's State Senate committee hearings on enforcing cigarette-tax laws could create more hardship instead of relieving it, tribal leaders say.

IMPACT REPORT
An economic-impact study by the Taylor Policy Group showed that by paying wages to more than 1,300 people, buying a majority of its goods and services locally and sharing millions in gaming profits each year, the tribe had a $119 million impact in New York in 2008 and a $95 million impact on Franklin and St. Lawrence counties.

The counties shared $7.8 million in slot-machine revenue in 2008.

But Tribal Council Chief James Ransom testified Tuesday that if an existing sales-tax law is enforced, the state would lose between $13 million and $20 million a year, based on a study the Tribal Council commissioned in 2003.

He spoke before the Senate Committee on Investigations and Government Operations, which is taking input on enforcement of tax laws adopted almost 20 years ago.

Previous attempts at enforcement in 1992 and 1997 met with protests from Indian nations across the state, including blockades on state roadways and the Thruway.

And lawmakers fear the same thing would happen again if enforcement were tried today.

CITES TEA PARTY
"To understand why we refuse to be the state's tax collectors, all you have to do is examine an event in your own history," Ransom said. "The parallels to our situation today are striking."

The Boston Tea Party of 1773, which eventually led to the American Revolution and establishment of the United States of America, "is arguably amongst the strongest examples of civil unrest in history," he said.

"It was the British trying to impose taxes on the colonists, getting them to, in essence, help pay for a huge British financial deficit that was none of their making," the chief said.

"If we jump forward to 2009, New York state has taken over the role of the British and is trying to impose taxes within sovereign Mohawk and Haudenosaunee (Iroquois) territories.

"Instead of a tea tax, it is a cigarette tax," Ransom told the committee. "Exactly as in 1773, the governor and State Legislature are justifying the most-recent tax legislation, stating the need for the tax (exists) because of the tremendous budget deficit they are trying to address.

"Our rights and interests are no less important than they were for the colonists," the chief said. "Protesting has long been an integral part of democracies and is viewed as an acceptable right of the oppressed.

"And much like 230 years ago, the oppressors are labeling our acts of civil disobedience as unlawful and illegal."

RIGHTS
He said "the state should expect no less" than what occurred in June, when Mohawks turned out in great numbers to voice their opposition to an attempt by the Canadian Border Service Agency to issue a sidearm to all of its customs agents at the Port of Entry on Cornwall Island.

"It was met with civil disobedience because of this failure to consider our rights — rights enshrined in the Canadian Constitution and Canada's Charter of Rights," Ransom said.

The agency closed its customs house over the issue, which also shut down the Seaway International Bridge for six weeks before authorities moved the Customs check off Akwesasne and into the City of Cornwall.

Until the state sits down to negotiate a compromise, Mohawks and all other tribes in New York say they will continue to oppose taxation.

"If our rights are given fair consideration and meaningful consultation occurs, then a peaceful resolution of state concerns can be found," Ransom said.

"But if the state should attempt to enforce a unilateral solution, I would expect a tea party to occur, as it did over 200 years ago."

E-mail Denise A. Raymo at: draymo@pressrepubloican.com