David Schwartz, a lobbyist for the New York Tobacconists’ Association, debates Michael Seilback from the American Lung Association on whether the city should be allowed to ban smoking in public beaches and parks on Thursday’s edition of “Inside City Hall.”

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A founding partner of the Parkside Group who has been involved in Queens politics for decades has left the political consulting and lobbying firm for Gotham Government Relations, a Long Island-based lobbying firm.

Bill Driscoll, one of three founding partners of the Parkside Group, which runs a number of campaigns for Queens political candidates, was the former chief of staff to the late Tom Manton, a congressman and Queens Democratic Party chairman, and was counsel to Manton’s successor, U.S. Rep. Joseph Crowley (D-Jackson Heights).

You can read more at Queens Campaigner

By A.A. Hoyt – Gotham Government Relations

The combination of Governor David Paterson’s Emergency Expenditure Legislation and the federal CHIP and PACT legislation will destroy any hope for an Indian summer by New York tobacco consumers.

The PACT legislation, Prevent All Cigarette Trafficking Act, signed in April 2010 by President Obama, is scheduled to be implemented by the end of this month (June 2010). PACT prohibits the post office from delivering cigarettes sold on the Internet.

Last year, the federal tax on cigarettes was raised by 62 cents/pack and is currently $1.01/pack. President Obama okayed the tax increase in order to fund CHIP legislation (children’s health insurance program). Although the Wall Street Journal reported in February of 2009, when the CHIP legislation was proposed, that the move by the federal government could “complicate efforts around the U.S. to boost state cigarette taxes,” that has not stopped New York from proceeding full speed ahead with its proposed tobacco tax.

The New York Tobacco Tax

New York’s now infamous tobacco tax increases the tax on every pack of cigarettes by $1.60 (effective July 1, 2010), increases the tax on other tobacco products by 75%, increases the tax on snuff products by $1.04/pound, and creates a new category of tobacco product, the “little cigar” (which will be taxed at an equivalent rate to cigarettes, effective August 1, 2010).

An Act to Amend the Tax Law, in Relation to the Sales of Cigarettes to Indian Nations or Tribes

Aside from the unprecedented taxes on cigarettes and other tobacco products proposed in Governor Paterson’s Emergency Appropriations Bill (# 293) and Emergency Article VII Bill (# 294), the Emergency Article VII Bill (#294) promises to tax New Yorkers who buy their cigarettes on qualified Indian reservation land.

Part D of Governor Paterson’s Emergency Article VII Bill (#294) ends the tax shelter (a.k.a legal loophole) enjoyed by New Yorkers who buy their cigarettes on qualified Indian reservation land.

New York Tax Law § 471-e (Tax Law) provides that “qualified Indians” have the right to purchase tax exempt cigarettes on the “qualified reservation” property of their tribe or nation for their own consumption. The law’s intent was to exempt only “qualified Indians” from paying State taxes on cigarettes. In 2005, the Legislature amended Tax Law §471-e, making it clear that “non-Indians making cigarette purchases on an Indian reservation shall not be exempt from paying the cigarette tax when purchasing cigarettes within this state.”

However, due to enforcement problems, the State has not been able to put into place a regulatory scheme that would allow Indian retailers to distinguish between “qualified Indians” and non-Indians when making cigarette sales.

Enforcement: Proposed Regulatory Schemes

In 1988, New York’s Department of Taxation and Finance (Department) adopted an approach to tax New Yorkers who bought their cigarettes from Indian land – the “probable demand” approach. (The Supreme Court formally put its stamp of approval on this approach in 1994.) Probable demand limits the quantity of unstamped (“untaxed”) cigarettes wholesalers or distributors could sell to tribes and tribal retailers. Essentially the “probable demand” formula attempts to fulfill the projected monthly cigarette need of a particular Indian tribe or nation so that “qualified Indians” would continue to purchase their cigarettes tax free and there would not be an excess amount of tax free cigarettes that could be sold to non-“qualified Indians.”

The Department proposed to implement the probable demand mechanism in one of two ways: (1) The Department could project the probable demand for cigarettes attributable to members of a particular Indian tribe or nation, or (2) The Department could enter into agreements with tribal leaders to determine probable demand. Thereafter, tax exemption coupons would be issued to Indian retailers in an amount representing their monthly allotment under the probable demand formula. Retailers could then exchange those coupons with wholesalers for unstamped (untaxed) cigarettes. Retailers were to sell unstamped cigarettes only to “qualified Indians” whom would be provided with individual exemption certificates to present to retailers when purchasing cigarettes. However, these regulations were never implemented due to prolonged legal challenges and proceedings and in 1998 the Department announced its repeal of the regulations.

In 2003 the New York Legislature adopted Tax Law § 471-e, which directed the Department to issue whatever regulations would be necessary to collect cigarette taxes on reservation sales to non-Indians. The new regulatory scheme also used a coupon system as the mechanism of enforcement. Again, the Department was to determine the probable demand for cigarettes by tribal members through various means. However, this time the Department was to periodically issue to the governing body of a tribe tax exemption coupons representing the amount of cigarettes likely to be consumed by tribal members each quarter. Contrary to the first set of regulations which stated probable demand was to be calculated on a monthly basis, the new regulations stated that probable demand was to be calculated on a quarterly basis. Further, the new regulations provided that the tax exemption coupons were to be issued to the governing body of the tribe, not to Indian retailers. Under the new regulatory scheme, cigarette wholesalers were to pay the sales taxes on all cigarettes in their possession; all cigarettes were to bear tax stamps. A tribe could then purchase cigarettes for use by its members without paying any sales tax by proffering the tax exemption coupons it was provided by the Department to the wholesaler. The wholesaler, in turn, would use those coupons to obtain a refund from the Department for the sales tax it had already laid out on the cigarettes it sold to the tribe.

However, this new batch of regulations never took effect due to the Department’s failure to meet the March 1, 2006 deadline. The Department had not made the probable demand calculations nor had it issued the tax exemption coupons. In an advisory opinion on March 16, 2006, the Department stated that it intended to continue its policy of “forbearance” (a.k.a. it would not actively attempt to collect from wholesalers, distributors, or Indian retailers, cigarette sales taxes associated with on-reservation sales).

Cayuga Indian Nation of New York v. Cayuga County Sheriff David S. Gould, et al.

The most recent legal challenge to the sale of tax exempt cigarettes on reservation land to non-“qualified Indians” was decided by the New York Court of Appeals on May 11th, 2010. Pertinent to our discussion, the issue before the Court was whether the Sheriffs and District Attorneys of Cayuga and Seneca Counties may enforce Tax Law § 471 (imposing a sales tax on cigarettes sold by Indian retailers to non-Indians on reservation land) despite the fact that the tax exemption coupon system devised by the Legislature in Tax Law § 471-e was not in effect. Essentially the Court had to decide whether Indian retailers could be criminally prosecuted for failing to collect the sales taxes from non-Indian consumers and forwarding them to the Department. Without a regulatory scheme in place to collect these sales taxes, the Court answered this question in the negative: “[A] system of ad hoc enforcement by local District Attorneys, without implementation of an appropriate calculation and collection methodology, [would not] be consistent with legislative intent.”

The Court did provide some guidance as to future methods of enforcement: “It is generally up to the Legislature and the Department to articulate – before a transaction occurs – in what circumstances a tax is owed, who is obligated to collect it, how it should be calculated and when and how it must be paid.” Finally the Court stated: “Whatever methodology is ultimately used to calculate and collect sales taxes derived from on-reservation retail sales of cigarettes, we would expect that advance notice would be supplied to Indian retailers and that the system would be uniform throughout the state.”

Where Do We Go From Here?

The Department must put an end to its forbearance policy and heed the advice of the New York Court of Appeals in crafting regulations that pass muster under current legal standards. Cooperation from Indian tribes as well as tobacco wholesalers and distributors would contribute to smooth enforcement. New York should also look to other states with successful regulatory schemes in place for guidance.

Finally, in crafting its regulations the Department must fulfill the three requirements articulated by the United States Supreme Court in 1994: “States may impose sales or excise taxes on sales or activities within an Indian reservation if the legal incidence of the tax rests on persons who are not tribal members, the balance of Federal, State, and tribal interests favors the State, and minimal burdens on collecting the tax are imposed on a tribe or tribal members.” (Dep’t of Taxation and Fin. of N.Y. v. Milhelm Attia & Bros., Inc., 512 U.S. 61 (1994)). As the “legal incidence of the tax” will rest on New Yorkers who are not “qualified Indians,” and a strong argument can be made that the “balance of Federal, State, and tribal interests favors the State,” the only remaining issue is enforcement.

Whether or not New York’s proposed regulatory scheme imposes only “minimal burdens” on collecting the tax imposed on a tribe or tribal members is likely another issue to be decided in the courts.

The price of a pack of cigarettes will increase by $1.60 and taxes on other tobacco products will increase to 75 percent of their wholesale costs.

The tobacco tax hike is just one of several bills passed by lawmakers Monday night.

State legislators also gave the OK to Gov. Paterson’s latest budget extender bill.

Gotham’s David Schwartz speaks to Albany’s Fox23 News:

You can read Fox23′s full article here

New York Tobacconists Association gathered to speak out against an increased state OTP tax that would put them out of business and would lose money for the state. Shot at De La Concha in Manhattan by the European Cigar Journal.

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For more information and to get involved, go to NYUpInSmoke.Org

Celene McDermott from NYMETROPARENTS caught up with Dr. Ellenmorris Tiegerman, founder and executive director of the School for Language and Communication Development (SLCD).  This year marks the 25^th anniversary of the opening of SLCD’s first school in Glen Cove, which was followed by a middle school in Woodside and, opening this fall for high school students, a vocational training school in Richmond Hill.

SLCD Founder Dr. Ellenmorris Tiegerman

The SLCD in Glen Cove offers preschool, elementary school, and middle school programs to children with speech impairment (SI), learning disability (LD), hearing impairment (HI), mental retardation (MR), autism (AUT), emotional disturbance (ED), traumatic brain injury (TBI), and other health impaired (OHI).  The SLCD in Woodside serves the same spectrum of middle school aged children, and the upcoming SLCD in Richmond Hill will be exclusively for high school aged students, with the aforementioned diagnoses, and will focus on vocational training and life skills.

What makes Dr. Tiegerman so unique?  One thing is her philosophy on language learning and her mission to give all of her students the gift of language:  “We can do something about the fact that the child is not talking.  We can provide him with the right teacher, the right setting, and the right curriculum so that he has the best opportunity to learn.”

To find out more about Dr. Tiegerman, read Celene McDermott’s interview

To find out more about the SLCD, or arrange a tour or visit, the SLCD website.

The next terror attack on America could be a self-inflicted wound — specifically, a cigarette burn. Politicians expand tobacco taxes to discourage smoking and to feed their own nicotine-like addiction to public spending. Like so many others, this government action smolders with unintended consequences. Tobacco taxes create a perfect arbitrage opportunity that radical Muslims exploit to collect money for terrorist groups that murder Americans and our allies.

Read Entire Article at NPR

The New York Post reports this morning that Governor Paterson may include a $1-a-pack tax hike on cigarettes in his next round of emergency spending legislation.

According to the New York City government’s website “[t]here is a combined City and State cigarette tax of $4.25 per pack on all cigarettes possessed for sale or use in New York City.”  $2.75 reflects the New York State tax and $1.50 reflects the New York City tax.  According to a June 2010 New York State Senate Investigations Report, “New York State convenience store owners pay a license fee to sell tobacco products and comply with the myriad of regulations surrounding tobacco sales.  Cigarette sales are a core product of the convenience store product line.  These retailers provide employment, risk capital, and work seven days a week.  Nevertheless, these small business owners are confronted with a State policy which chases their customers away…”

Read the entire report at: Senate Report: Why New York Fails to Collect Cigarette Taxes on Native American Reservations.

Enough is enough.

Gotham Government Relations has been working tirelessly on behalf of the New York Tobacconist Association, tobacco distributors and other small businesses to get Albany’s butt out of their businesses. What can you do? Join the conversation by posting a comment on this morning’s article in the New York Post.

Don’t stop there… send a letter or e-mail to your elected officials telling them to oppose the tobacco tax. To find the address of your elected officials, visit this link.

New York State faces a $9 billion shortfall while failing to collect taxes on the billions of dollars worth of cigarettes sold by Native American reservations.

Why?

State Senator Craig Johnson

Headed by chairman Craig Johnson, the New York State Standing Committee on Investigations takes a close look at why we’re not collecting these taxes.  Read the report, share it with your friends and be sure to head over to NYUpInSmoke.Org for more information. NYUpInSmoke.Org also has a prepared letter that you can send to Governor Paterson to urge him to take action.

New York is in deep trouble. With your help, we can stop this illegal activity and stop cutting important government programs.

You can also Download Report Here

Roslyn, NY

Brad Gerstman and David Schwartz, founding partners of Gotham Government Relations, are pleased to announce their biggest expansion to date, proving yet again they are New York’s fastest-growing government relations firm. High powered lobbyist Bill Driscoll has joined the firm as  a partner. In addition, Mark Lieberman has joined the firm as a political consultant.

“All of our new members have an incredible wealth of experience working at the highest levels of government and as private lobbyists. We are pleased to welcome them into our Gotham family,” says founding partner Brad Gerstman. “It took us some time to find exactly the right pieces we needed in order to continue to grow the Gotham brand. With our new partners, we hit it out of the ballpark!  Driscoll and Lieberman have built up an incredible track record over the past thirty years and they all share our philosophy of striving to be the most aggressive, relentless and tireless lobbying firm in the business,” says founding partner David Schwartz.

Mr. Driscoll is an attorney and has been a vital part of New York government and politics for over three decades. He represents a wide array of non-profit organizations, counseling them on their budgetary, programmatic and legislative priorities. Mr. Driscoll’s extensive service in government includes: Chief of Staff to Congressman Thomas Manton, Counsel to Congressman Joseph Crowley, Counsel to the Queens County Clerk, and Chief of Staff to members of the New York City Council and New York State Assembly. He is also a member of the Executive Committee of the New York State Democratic Committee.

Mr. Lieberman is an attorney and a twenty-five year veteran of the Albany scene. He has provided representation to a broad base of entities including banking and financial institutions, local governments, media companies, health care providers, pharmaceutical manufacturers, insurance companies, educational institutions, racing and wagering companies, not-for-profits, unions, manufacturing and service companies, and trade associations. He has also served as counsel to members of both the Assembly and Senate.

In addition to these new team members, Gotham Government Relations is opening an additional New York City office, located at 154 Grand Street in SoHo. “Our business was growing so rapidly, that we knew we needed to expand and have a base close to City Hall in Manhattan,” Schwartz says. “We’re certain that our new space will only be beneficial to our growing business and serve as a crucial hub for us to effectively lobby in New York City,” Gerstman says.

New York’s fastest-growing government relations firm, Gotham Government Relations, provides lobbying, advocacy and consulting to its clients. Gotham offers its clients forward-thinking strategies that tap into political trends and opportunities. The work of its partners has resulted in shaping public policy on a number of key matters, including business advocacy and strategy, land use, special education and charitable causes. Gotham Government Relations has offices in New York City, Albany, Long Island and Washington, D.C.