A state tax department policy of not enforcing tax collections on Indian cigarette sales was officially rescinded Tuesday by the Paterson administration. But it will still take approval of a new set of regulations before the tax-free sales are halted. Gov. David A. Paterson announced a proposed set of rules to break the decades-long dispute over tax-free tobacco sales, which critics say could be costing the state as much as $1 billion a year in revenues.
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