Appeals court holds off on making decision on NY tax on cigarette sales by Indian tribes

By AP
Thursday, September 9, 2010

NY court holds off ruling on Indian cigarette tax

ROCHESTER, N.Y. — A New York appeals court has held off deciding whether to extend or lift an order blocking the state from collecting taxes on cigarettes sold by Native American stores to non-Indian customers.

On Sept. 1, a state appellate judge in Rochester restored a restraining order that barred the state from collecting the $4.35-per-pack tax. The court’s five-judge panel took up the case Thursday, but ended the session without saying when a ruling would be issued.

A federal judge in Buffalo has already temporarily blocked tax collections from two Indian nations — the Senecas and Cayugas — and scheduled a hearing for Tuesday.

The appellate court order applies to all nine New York tribes battling to preserve their tax-free cigarette business.

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