Tensions rise as NY Indian leaders fight tax on reservations’ cigarette sales to non-Indians

NY cigarette tax plans raise reservation tensions

CATTARAUGUS INDIAN RESERVATION, N.Y. — As New York Indian Nation leaders battle in court against state attempts to tax reservation cigarette sales, they’re urging calm on reservations, where members count on tax-free sales for jobs and revenue.

A federal judge in Buffalo will hear arguments Tuesday in the Seneca and Cayuga’s case to invalidate the law imposing New York’s $4.35-per-pack sales tax on cigarettes sold to non-Indian customers. The nations say the state lacks jurisdiction on reservations.

On Thursday, a state appeals court in Rochester will take up arguments on the enforcement regulations.

Judges at both the state and federal levels last week temporarily blocked the tax collections from going forward as scheduled on Sept. 1.

Nine New York tribes are in the cigarette business.