Tribes in New York are back in court this week to block the state from imposing a tobacco tax on the reservation.

The Seneca Nation and the Cayuga Nation are in federal court today over a temporary restraining order that Judge Richard Arcara issued last week. The tribes say the state's tax infringes on their sovereignty and their regulatory systems.

On Thursday, the battle moves to state court, where an appellate division will consider whether to block the tax for all tribes. The tax has been put on hold pending the resolution of the case.

The state says it can tax wholesalers who sell tobacco to tribal retailers. The tax will be imposed up-front, so the cost is passed onto tribes.

The state says tribal members can continue to buy tax-free tobacco. But the limits will be dictated by the state.

Get the Story:
New York cigarette tax plans raise tensions on reservations (AP 9/6)

Relevant Documents:
ATF Letter on Tribal Consultation (May 19, 2010)

Prevent All Cigarette Trafficking Act:
H.R.1676 | S.1147

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