Federal judge temporarily blocks NY plan to tax Seneca, Cayuga reservation cigarette sales

Judge blocks part of NY tax on Indian cigarettes

BUFFALO, N.Y. — Two American Indian nations in western New York have won a temporary reprieve from the state’s plans to tax cigarette sales to non-Indian customers.

But Gov. David Paterson says the state’s other tribes will still be subject to the tax after a federal judge’s order Tuesday.

Paterson says he’s disappointed by the temporary restraining order granted to the Seneca and Cayuga Indian nations. He says he’s confident the state will win the overall legal challenge.

He says the state will move forward Wednesday with plans to apply the $4.35 per pack tax on cigarettes sold by tribal nations not covered by the order.

The state expects about $200 million a year in new revenue. Tribes see it as an attack on their sovereignty and finances.