LEGISLATIVE RESOLUTION urging the New York State Congressional deleg-
ation to enact the Prevent All Cigarette Trafficking Act (PACT)

WHEREAS, The systematic non-enforcement of New York tax laws has fueled
a national and international criminal trade in untaxed cigarettes; the
most damaging example is the State's current non-enforcement policy on
the taxation of cigarette sales by Native American reservation-based
sellers to non-tribal customers; and
WHEREAS, The United States Supreme Court upheld New York State's right
to collect taxes on reservation sales to non-tribal customers in their
1994 decision DEPARTMENT OF TAXATION AND FINANCE OF NEW YORK ET AL. V.
MILHELM ATTEA & BROS., INC., ET AL.; however, more than 15 years later,
New York has yet to collect these cigarette taxes, and is currently
losing hundreds of millions of dollars a year; and
WHEREAS, This Legislative Body has passed laws explicitly requiring
taxes to be collected on reservation sales, but many have not been
enforced; and
WHEREAS, At a time when New York State is struggling financially to
fund vital programs and services, this State cannot afford to lose any
more cigarette tax revenue to cigarette smugglers and the businesses
that sell untaxed cigarettes; and
WHEREAS, In 2000, New York State passed the first law of its kind in
the nation prohibiting the direct shipment of untaxed cigarettes to
consumers in an effort to reduce the internet trade in untaxed ciga-
rettes and prevent remote sales to minors; and
WHEREAS, The State of New York has also been a leader in negotiating a
multi-state agreement with credit card issuers to stop processing
payments for illegal shipments of untaxed cigarettes; and
WHEREAS, Legislation is pending before the United States Congress that
would shut down the internet trade in untaxed cigarettes by closing the
remaining loophole that allows the United States Postal Service to
deliver cigarettes to New York consumers; and
WHEREAS, The United States Senate passed the Prevent All Cigarette
Trafficking Act (PACT) unanimously on March 11, 2010; currently, the the
bill is before the House of Representatives; now, therefore, be it
RESOLVED, That the New York State Congressional delegation be and
hereby is respectfully memorialized by this Legislative Body to enact
the Prevent All Cigarette Trafficking Act (PACT); and be it further
RESOLVED, That copies of this Resolution, suitably engrossed, be tran-
smitted to each member of the Congressional delegation from the State of
New York.