[ By Christopher Michel ]

Staff Writer

Jan. 8, 2009

With the arrival of the new year, New York State officials are
still working on a cure for the state’s economic woes. While many
of the solutions coming from cutting state aid and programs have
brought a slew of opponents, the Seneca Nation of Indians is
fighting a measure which could provide the state with millions of
dollars in additional funds.

Starting in December, state officials took a critical look at
taxing Native cigarette sales.

On Dec. 5, SNI officials met with Governor David Paterson at his
office in Manhattan.

Initial reports from the Seneca Nation of Indians and Governor’s
Office indicated the meeting went well, with no controversial
issues discussed. Paterson’s actions nearly two weeks later,
however, told a different story of the meeting’s proceedings.

On Dec. 15, Gov. Paterson signed a bill into law allowing the
state to tax cigarette manufacturers selling to Natives. The law
prohibits manufacturers from selling cigarettes without a state-tax
stamp. According to Paterson’s office, the taxes collected could
amount to more than $400 million annually or 2.6 percent of the
state’s $15 billion budget deficit.

At a press conference held in the days after the approval of the
new law, Barry Snyder, president of the SNI, said Paterson told him
a week earlier he knew the bill was flawed.

“The governor told me he knew this bill was flawed” Snyder said
referring to the meeting he had with him two weeks earlier. At the
meeting Paterson told Snyder he signing the bill was a political
move, citing he is not the elected governor.

Snyder said along with Nation officials, he would be taking a
hard look at options the SNI can take in having the law amended or
repealed. Snyder did not indicate what actions the SNI may take or
options they would be exploring.

Additionally, letters were sent to President George Bush and
Gov. Paterson by the SNI condemning the new law. The letters sought
to work with government officials to reach a compromise. The letter
to Paterson invited him to come to Seneca Territory to meet – an
action Snyder said no recent governor has taken in the past.

Should the law go into effect, Snyder said 20,000 local jobs and
$300 million in revenues would be affected.

Nation and state officials have a Feb. 15 deadline to reach an
agreement before the law takes effect.

While SNI officials work for the best interests of the Tribe in
the matter, Snyder asked members of the Tribe to let SNI officials
handle the matter. He decried any violent protests.

On Dec. 26, Rose H. Sconiers, New York State Supreme Court
justice, issued an injunction against the law. The injunction
results from legal actions taken by a local smoke shop owner.
Sconiers’ ruling requires state officials to appear in court to
appeal the temporary hold on the law.

State officials are expected in court on Jan. 27 for hearings on
the new law.