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Threat of Tax-Free Gas Station/Convenience Store
Remains as Threat to Falls Businesses

One month ago, The Niagara Falls Reporter broke a statewide story of how the Seneca Gaming Corp. sent out solicitations to vendors to design a tax-free gas station and smoke shop on casino land given to the Seneca Nation by New York State in 2003.

The story caused a lot of angst.

The New York Association of Convenience Stores issued a letter stating that the sale of untaxed cigarettes and gasoline would “cripple” mom and pop stores.

Gov. Andrew Cuomo’s operations director, Howard Glaser, said a Seneca gas station and smoke shop is not allowed in the gaming compact between New York and the Seneca Gaming Corp.

Niagara Falls Mayor Paul Dyster said, “There were (verbal) assurances given by the Seneca ... that this type of development was not intended.”

The Senecas argue they can do what they please.

In the past few years, the Senecas opened a hotel, stores, gift shops, restaurants, nightclubs, all tax free, and in competition with local tax-paying businesses.

There is a smoke shop on casino property already. In the 24-hour newsstand, and in their gift store, smokers can buy tax-free Seneca brand cigarettes like Heron and Buffalo for $6 a pack.

New York State’s excise tax is $4.35 per pack, the highest in the nation. Marlboro and Camel, reflecting the excise tax, sell for $10 per pack at nearby American stores.

Before long, perhaps, the Senecas will build a mega smoke shop and gas station on Niagara St. and eliminate all the other convenience stores and gas stations in Niagara Falls.

For Americans in Niagara Falls , unable to muster a fight against the Senecas, all they can do is sit back and watch as the Seneca Nation takes over their town.

 

 

Niagara Falls Reporter www.niagarafallsreporter.com Sep 18 , 2012