NYACS Position on Tax Evasion Issues

Restore fairness in taxation of cigarettes and motor fuel.

New York's convenience store industry continues to bleed billions of dollars in sales annually – and the State is losing over $1 billion in tax revenue – due to a cigarette and motor fuel tax evasion epidemic caused by the State's insistence on exorbitantly increasing excise tax rates without closing off channels for routinely dodging those taxes. Law-abiding retailers need and deserve immediate relief from the ill effects of this pervasive problem.

  • Every 10-gallon fill-up by a non-Indian motorist on an Indian reservation costs New York State $5 in lost tax revenue. Indian enterprises collectively sell millions of gallons of gasoline "tax free" to New Yorkers every year. By law, such purchases are taxable. Why is our State tolerating this tax avoidance?
  • A NYACS economic analysis shows that half the cigarettes consumed in New York are sold without any New York State tax being collected – purchased from border states, Indian reservations, or smugglers. This tax evasion epidemic is costing our State $1.7 billion annually in lost revenue and over 6,700 jobs.
  • Native American-made cigarettes sold to non-Indian customers should be subject to state tax, just as with national brands. Inter-reservation shipments of untaxed Native American-made cigarettes on state highways should be seized as contraband. Applicable taxes also should be collected on cigars, smokeless tobacco, and other non-cigarette tobacco products sold by tribal stores to the public.

Resources on the Tax Fairness Issue