>>>All the dealers that aren't indian reservation connected are forced by law to turn over copies of their sales.
Are you sure? Look at this:
Seneca Tobacco Faces Taxes Online [07/18-2]
Excerpts from: Seneca Tobacco Faces Taxes Online
By Jerry Zremski, Buffalo News [07/16/05]
The Internet tobacco sales empire based on Seneca Nation land suffered another big blow this week, as one of the tribe's biggest merchants agreed in federal court to turn over his customer list to tax authorities in Washington State who plan to collect sales taxes from those purchasers.
The decision in the case is believed to be the first in the nation forcing a Native American Internet retailer to help a state collect taxes on cigarette purchases.
Seneca merchant Scott Maybee agreed to the settlement with U.S. District Court Judge Franklin D. Burgess in Tacoma, Wash.
Tobacco opponents said the decision would encourage other states to pursue similar cases. And that would put even more pressure on online tobacco merchants, who are already suffering because many credit card companies are now refusing to do business with them.
If states follow Washington's path and are able to collect taxes from people who buy cigarettes on the Internet, the huge price advantage that Internet tobacco merchants have would quickly disappear.
"If this approach is followed by attorneys general in other states, it could have a very significant impact on curtailing cigarette sales," said Eric Lindblom, manager of policy research at the Campaign for Tobacco-Free Kids.
Lindblom said he was surprised that Maybee did not "try to use tribal sovereignty as a shield." Other Indian merchants have contended that tribal sovereignty the principle that Indian tribes are independent nations exempted them from taxation.
But Maybee's lawyer, Margaret A. Murphy of Buffalo, said she advised Maybee to comply with the law because tribal sovereignty clearly doesn't protect tribal merchants from the federal Jenkins Act, which forces all tobacco merchants to report out-of-state sales.
"Other Indian merchants have contended that tribal sovereignty the principle that Indian tribes are independent nations exempted them from taxation."
Seneca got trapped by NY because they are in the state, as for WA they should never have agreed to settle and used the above argument which seems to hold up.
I won't buy from a reservation in CA because if I did they would be forced to report the sale.