AKWESASNE, NY ― The Saint Regis Mohawk Tribal Council and the Tribe’s Business Taskforce issued the following statement in response to a lawsuit filed by the New York State Association of Convenience Stores on
May 2, 2006
. The suit was filed against Governor George Pataki attempting to enforce the collection of the State sales tax on cigarettes and motor fuel sold to non-Natives on reservation across
New York
.
The Tribal Council stated that it had anticipated that the New York State Association of Convenience Stores would file a suit against Governor Pataki trying to force the collection of the sales tax on goods purchased by non-Natives. The Tribal Council, however, continues to believe that the State’s concerns can be addressed through negotiations, rather than litigation. To that extent, the Tribal Council has reached out to both Governor Pataki and Attorney General Spitzer to discuss efforts to resolve this issue.
The Tribal Council firmly believes and has stated that Akwesasne is not a part of the state's overall tax problem and that enforcement of the state tax collection on non-Natives will have a negative impact on the regional economy. They noted that attempting to litigate the issue will be costly for all the parties and will adversely impact efforts to reach a negotiated resolution.
The Tribal Council has put forth good-faith efforts and has formulated a response to State tax collection efforts based on our community’s unique factors. A solution is being developed by the Tribal Council and the Business Taskforce that will consider Akwesasne remote geographic location, a regulatory program that includes licensing and collection of tribal fees that support essential governmental services, an existing minimum pricing system that keeps prices competitive with surrounding communities, employment of several hundred non-Native taxpayers from neighboring towns and villages, and other factors.
In a recent meeting with the Tribal Council, members of the Business Taskforce indicated that they are growing tired of NYSACS’s insistence on taking economic problems of the State and pinning it solely on the Tribal Nations. The Taskforce noted that in a State with a $110 billion budget and more than 7 million citizens, that Tribal Nations are not the problem. They stated that the NYSACS is not looking for a level playing field, but are looking to remove Tribal Nation businesses from the field.
The Tribal Council noted a March 1st Zogby poll that confirmed the Tribe's position that Akwesasne is not a part of the state's overall tax problem. The poll revealed that not only do 79 percent of
New York
voters support a delay on the collection of taxes on non-Native purchases, but reservations shouldn't be taxed at all. The poll clearly showed that a majority of State residents have a favorable opinion of Tribal Nation businesses for the economic opportunities they provide.
Both groups stated that what is not being considered is the savings that consumers find on reservations is extra money that is spent in surrounding economies. In addition, the hundreds of non-Natives that work at Mohawk businesses are tax payers and pay into local tax rolls through school taxes and real property taxes. They also noted that several hundred Mohawks live away from Akwesasne and pay state and local taxes.
The Tribal Council and Business Taskforce urge local patrons to join their efforts to prevent an additional tax from being imposed on non-Natives. They suggested that voters contact their local representative and demand that a special-interest group comprised of large oil companies not determine what is best for the average citizen.