Fredericks Peebles & Morgan LLP
ads@blueearthmarketing.com   712.224.5420

Business | Law
New York City seeks smokeshop injunction


New York City Mayor Mike Bloomberg asked a federal judge on Tuesday to stop smokeshops on the Unkechaug Indian Nation, a state-recognized tribe, from selling cigarettes.

The city says the smokeshops on the Poospatuck Reservation are selling cigarettes to non-Indians without collecting state taxes. "In making off-reservation sales, including bulk transactions in which defendants sell vanloads of cigarettes on a daily basis, which are then trafficked into New York City for resale, defendants grow rich at the expense of tax-paying retailers and city and state taxpayers," court papers stated.

The city says only reservation residents are entitled to tax-free cigarettes. But with only 279 people living at Poospatuck, there is no way they bought 11.3 million cartons of cigarettes last year, the motion for a preliminary injunction stated

Chief Harry Wallace said the state has no right to interfere with business on the reservation.

Get the Story:
City Tries to Curtail Cigarette Sales From Reservation (The New York Times 10/29)
pwnyt

Mayor Bloomberg Relevant Documents:
Press Release | Video

Related Stories:
Editorial: Indian smokeshops and organized crime (10/27)
Editorial: New York City finds a new foe in tribes (10/10)
More than 30M cartons sold on New York reservations (10/2)
New York City mayor sues Indian smokeshops (9/30)
New York governor pressed on tribal tobacco bill (09/04)
Editorial: Negotiate tribal tobacco deal in New York (9/3)
St. Regis Mohawk Tribe opposes tobacco tax bill (8/26)
Seneca Nation lobbies governor on tobacco tax bill (8/14)
Seneca Nation opposes tobacco tax bill (8/12)