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Can Non-Tribal Members Buy Tax-Free Cigarettes from Indian Tribes? For decades, Indian tribes in the United States have held the status of sovereign nations. Operating as such, they have been able to freely sell things like cigarettes and gasoline, and operate businesses such as casinos, without paying taxes to the state or federal government. However, that has become a heated issue in the current economic environment, especially concerning tax-free cigarettes while the rest of the country experiences never before seen cigarette tax increases. The Taxman Cometh The entire tax-free Indian cigarette program is under fire from all sides lately. With the ever-increasing taxes, and consumers fleeing to find alternative ways to purchase affordable tobacco products, Obama's appointed head of the Centers for Disease Control and Prevention, Thomas Freiden is on a campaign to find a way to eliminate the entire tax-free status of Indian cigarettes. The reasoning for the sudden desire to bring the tax-free business of tobacco sales by Indians to its knees is that those cigarettes are the ones most often targeted by bootleggers, brining in thousands of packs per day into the system. Tricky Business Some states try to limit or control the way Indians are allowed to sell tax-free cigarettes. A few states, such as New York State, the state with the highest cigarette tax in the nation, use tax stamps to indicate where cigarettes come from, and how they are taxed. This includes Indiana cigarettes, and the states demand Indians only sell to tribe members. Theoretically, anyone caught with a package of cigarettes stamped for tribal sale, but not a tribe member can be charged with contraband. However, that is much harder to track than it seems. When Indian tribe members sell tobacco products to outside customers, they are supposed to sell them packs stamped for Indiana non-tribal sales, charge sales tax, and submit it to the state in question—also hard to regulate and track. However, in early August of 2010, a federal judge temporarily stopped New York from imposing a non-tribal tax on Indian cigarette sales. Fearing backlash from the tribes, the way an earlier uprisings in the 1990s did when local governments tried to tax sales. Local tribes, the Seneca and Cayuga Nations feel that taxing their sales violates their rights as sovereign nations, and hurts their economy. The stalls did not dissuade new Governor Andrew Cuomo from including an expected $130 million from taxed Indian cigarette sales in his new budget. He remains hopeful that the law will see beleaguered state's side in the issue, and the courts will rule in favor of making tribes comply with non-tribal taxes. Getting Messier In late August of 2010, New York State Supreme Court lifted the ban on injunction that put a halt to the state's attempt to tax non-tribal sales of Indian cigarettes. One Seneca tribe leader declared it an "act of war." The Seneca tribe has also declared an intention to withhold proceeds from their casino slot machine fees, a big hit to New York fiscal economy. Other tribes are making other moves such as transferring their manufacturing plants to out-of-state factories as a means of evading the tax attempts. Is Buying Indian Cigarettes Legal for Non-Tribe Members? While the government hashes out its differences with the Indian reservations concerning sales, there is no such deliberation when it comes to non-tribal members who purchase the product at the tax-free price. It is considered bootlegging, and absolutely illegal. Anyone caught in possession of non-taxed cigarettes may face fines and even jail time depending on the number of packs, or cartons in their possession. Transportation vehicles may also be seized if the person is caught in possession while transporting the cigarettes. Best Mail Order Cigarettes Websites
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