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Albany - Calling the New York State Tax Department derelict in their duties to implement State tax law by failing to collect sales taxes on retail goods sold by Native Americans to non-Native Americans, State Senator Michael F. Nozzolio today called for Acting State Tax Commissioner Robert Megna to begin immediate collection of the tax.

"New York State government is the #1 tax scofflaw in the entire state," said Senator Nozzolio. "The overburdened property taxpayers of New York State are owed approximately $250 million from the collection of taxes on tobacco and motor fuel sold by Native Americans to American citizens. It's time for the NYS Department of Taxation to follow the law and collect the tax."

In an appearance Wednesday before the State Senate Finance Committee, Governor Spitzer's nominee to serve as Tax Commissioner, Robert Megna, was questioned by Senator Nozzolio on current state tax policy and the continued reluctance of the Tax Department to collect the sales tax from Native American businesses. During the Commissioner's confirmation before the Finance committee, Senator Nozzolio reiterated that the State Tax Department should enforce state tax law by collecting the sales tax.

Nozzolio noted in the confirmation process that Governor Spitzer last year projected revenue of $250 million from the collection of these taxes upon Native American goods sold to non-Native Americans. The 2008-09 State Budget, which was released yesterday, also projects nearly $100 million in revenue for the upcoming fiscal year from this tax.

In 2006, Senator Nozzolio sponsored legislation that was adopted by the Legislature and signed into New York State law requiring the State Tax Department to collect sales taxes on retail goods sold by Native Americans to non-Native Americans. The Tax Department has yet to enforce State tax law by collecting the sales tax from Native American owned businesses.

"The NYS Tax Department has become a tax deadbeat because it is not collecting revenue that it is required to from Native American tribes who are enjoying an enormous advantage over every other retailer who is forced to pay taxes. The Tax Department cannot selectively choose which laws it will follow and which taxes it will collect. The law of the state requires them to collect this tax and the people deserve to be served by a Tax Department that implements the law fairly and without discretion," concluded Nozzolio.

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