Mayor To NY: Collect Lost Revenues

With the state of New York looking at trying to find money to close its massive budget gap, Ogdensburg Mayor William D. Nelson has a suggestion.

Why not collect an estimated $1 billion in lost revenues from cigarette sales to non-tribal members on Native American reservations?

Recently, Mr. Nelson met with representatives of the Enforce the Law - Collect the Tax Coalition, a state-wide group of business organizations, community leaders and advocates who are working to raise awareness and generate support to ensure the state collects the estimated $1 billion in lost revenues.

They are revenues that, if collected, would most likely would have kept Ogdensburg Correctional Facility off of the state's prison closure list, according to Mr. Nelson.

"Last week, thousands of people from throughout the region rallied in support of saving the nearly 300 jobs at the Ogdensburg Correctional Facility. We all know times are tough and there are difficult choices to be made, but at over $1,900/ minute collecting just 21 days of these lost revenues could prevent the closure of Ogdensburg and all four upstate prisons," he stated,

"That's why I say before you decide to close our prison, collect the taxes already on the books."

Mr. Nelson said that he intends to forward a draft resolution in support of the coalition's efforts to the city council for their consideration.

According to the Enforce the Law-Collect the Tax Coalition's tax loss calculator, based on a report by the New York Association of Convenience Stores, indicates that New York State loses $1,900 every minute that the law is not enforced and the tax is not collected.

The report can be found on-line at http://www.nyacs.taxstudy .

The coalition states that the Department of Tax and Finance can start collecting the tax immediately by issuing coupons that are required under a law - Tax Law 471-e - that was passed several years ago.

The coalition's stance is that the Legislature should pass a simple bill to impose a hard deadline on the Department to start collecting the taxes.

Members of the coalition include the following: New York Association of Convenience Stores, NYC Newsstand Operators, Teamsters Local 805, Empire State Restaurant & Tavern Association; New York State Business Council and the National Association of Tobacco Outlets among others.

For more information on the coalition, log onto its Web site at www.collectthetaxny.com.