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NOZZOLIO CALLS ON GOVERNOR PATERSON TO APPROVE LEGISLATION TO COLLECT SALES TAXES FROM NATIVE AMERICAN BUSINESSES

Seeks Public Support of Effort to Enact Tax Equality

Albany – New York State Senator Michael F. Nozzolio today urged Governor David Paterson to sign into State law legislation he is sponsoring that would begin the collection of sales taxes from Native-American businesses that sell products to the general public. The measure (S.8146) was approved by both the State Senate and State Assembly.

“For far too long, we have waited for New York State to enforce the law and collect sales taxes on Native-American businesses,” said Senator Nozzolio. “In 1994, the Supreme Court ruled that it is legal to collect these taxes. In 2005, we adopted State law requiring the State Tax Department to collect these taxes and still we have not received any action from the State.”

It is estimated that the collection of sales taxes from Native-American businesses would lead to an increase in State tax revenue of $400 million a year.

Residents are urged to register their support for Senate bill 8146 by signing an online petition urging the Governor to sign the measure into State law. To urge Governor Paterson to sign Senate bill 8146 into State law, please click here.

“The time for talk is over – we demand action. I am calling upon the public to voice their support for Senate bill 8146 and join me in calling for Governor Paterson to sign this critical legislation into State law. The current situation continues to cause an unfair economic disadvantage for our State’s other retailers, particularly for those who operate their businesses near the Indian reservations,” continued Nozzolio.

Senate bill 8146, sponsored by Senator Nozzolio, would provide an alternative means to collect the sales tax by requiring wholesalers to pre-pay the tax. This pre-payment ensures sales taxes on goods would already be collected by the time they were delivered to the Native-American retailers.

“Thousands of my constituents have called for tax equality and an end to unequal taxation. Now, I am calling on them to sign the petition on my website urging Governor Paterson to sign Senate bill 8146. Together, we will tell Governor Paterson that Native-American businesses must pay their fair share of taxes and the tax inequality must end,” said Senator Nozzolio.

“Governor Paterson has the power to correct this inequity. This issue has a strong impact on the financial stability of our counties and local governments and on the ability of our local businesses to remain economically viable and competitive in our region. As the State Senator representing the Finger Lakes region, I am calling upon Governor Paterson to sign Senate bill 8146 into law and address this critical issue,” concluded Nozzolio

Attached is Senator Nozzolio’s letter to Governor Paterson urging the signing of Senate bill 8146.

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August 27, 2008


The Honorable David Paterson
State Capitol
Albany, NY 12224

Dear Governor Paterson:

On behalf of the people of Cayuga and Seneca counties, I ask that you sign Senate bill 8146 into State law to implement the collection of sales and excise taxes from Native-American businesses that sell products to the general public.

As you know, for far too long, the issue of taxation on Native-American businesses has gone unresolved. If signed into law, Senate bill 8146, which I sponsored in the State Senate, would ensure tax equality and level the playing field for all of New York’s businesses.

The Supreme Court in 1994 stated that the collection of sales taxes from Native-American businesses by the State is allowed under the law. In 2005, legislation was signed into law requiring the collection of the sales taxes.

However, both Governor Pataki and Governor Spitzer and the New York State Tax Department have yet to enforce what is part of New York State law. Signing Senate bill 8146 into State law and beginning the collection of sales taxes on these goods would lead to an estimated increase in State tax revenue of $400 million a year.

Senate bill 8146 would provide an alternative means to collect the sales tax by requiring wholesalers to pre-pay the tax. This pre-payment ensures sales taxes on goods would already be collected by the time they were delivered to the Native-American retailers.

This legislation has been adopted by both houses of the Legislature and is awaiting your signature into State law. It has already received overwhelming support from New Yorkers as well as many editorial boards across the State.

Once again, I strongly urge you to sign Senate bill 8146 into State law. I await your immediate response.

With best wishes.

Sincerely,

Michael F. Nozzolio
Senator, 54th District

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