Kirst blames the closure of his food and tobacco wholesale distribution business on the failure by New York State to resolve the long-standing issue of collecting taxes on
camel online sales by Indian retailers, whose tax-free sales put his products at a severe price disadvantage.УYou are looking at a casualty of New York StateТs failure to enforce the tax law,Ф Kirst said Monday in Albany as a group of his supporters announced a lawsuit against Spitzer for failing to collect the taxes Ч which have been estimated to total as much as $1 billion when gasoline sales are factored in.The lawsuit, filed by Assemblyman David Townsend, an Oneida County Republican, and by a Franklin County convenience store, seeks to compel the governor to collect the taxes. The governor, despite numerous promises, has backed away from mandating that the taxes be collected at the wholesale level, instead taking a route that involves trying to negotiate individual deals with the stateТs Indian tribes.The plaintiffs want the governor to enforce a law enacted in 2006 that requires wholesalers to pay the stateТs $1.50 per pack excise tax before the products are transported to Indian retailers for sale via smoke shops, the Internet and mail order. The Seneca Nation, the kings of tax-free tobacco sales in New York, have long argued treaty rights dating back to the 1700s protect their business from state interference.The Spitzer administration has said it canТt enforce the law, in part, because a judge in Erie County last year issued an injunction saying the tax department failed to print coupons that Indians, personally exempt from the tax for their own cigarette purchases, could use to buy tax-free cigarettes. Critics say the administration could fix that legal problem by simply printing the coupons.