Federal judge temporarily blocks NY plan to tax reservation cigarette sales to non-Indians

Judge blocks NY plan to tax reservation cigarettes

BUFFALO, N.Y. — A federal judge has temporarily blocked New York state’s plans to tax Native American cigarette sales to non-Indian customers.

Judge Richard Arcara granted a request by two western New York tribes for a court order that would stop the state from imposing a $4.35 per-pack sales tax on cigarettes sold by reservation retailers starting Wednesday. The duration of the order is unclear.

Attempts to collect the tax in the 1990s resulted in sometimes violent protests on Seneca lands. The Seneca and Cayuga nations argued the policy change violates sovereign rights and will damage their economies.

The cash-strapped state sees the tax as a potential $200 million source of annual revenue.