"Talk is cheap — especially when it comes to New York state’s ability to collect taxes on cigarette sales by Indian-owned businesses to non-Indians. Four governors failed to do so, despite promises, and now, as a fifth prepared to finally go where no governor has gone before, there’s a new glitch in the process.

Nevertheless, Gov. Andrew Cuomo must remain committed, work through the latest delay, and begin collecting the tax.

On Monday, the 2nd Circuit court upheld state authority to collect taxes on cigarette sales on reservation land to nonmembers of the tribe. The appeals court upheld a lower court.

But on Tuesday, a state judge issued a temporary restraining order barring New York from collecting its $4.35-per-pack tax until a June 1 hearing to determine whether the state followed its own rules in adopting taxing regulations. The order had been sought by the Seneca Indian Nation."

Get the Story:
Our view: Cuomo must stay firm on tobacco tax (The Utica Observer-Dispatch 5/13)

2nd Circuit Decision:
Oneida Nation v. Cuomo (May 9, 2011)

Related Stories:
New York judge bars tobacco tax on sales to Seneca Nation (5/10)
2nd Circuit lifts injunction in New York tribal tobacco tax feud (5/9)