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NY Tax On Tribal Cigarettes Temporarily Blocked, For Now

 
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09/01/2010 12:57 PM
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NY Tax On Tribal Cigarettes Temporarily Blocked, For Now
Indian tribes won’t be taxed on cigarettes for at least two weeks.

A federal judge on Tuesday temporarily blocked budget-strapped New York State’s plans to tax cigarette sales by two American Indian nations to non-Indian customers while the tribes challenge the policy shift as a threat to sovereignty and their financial well-being.

Judge Richard Arcara granted the Seneca and Cayuga nations’ request for a court order that stops the state from imposing a $4.35 per pack sales tax on cigarettes sold by reservation retailers starting Wednesday. The duration of the order wasn’t immediately clear; another hearing in the case was set for Thursday.

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