A judge in New York granted a preliminary injunction on Tuesday that bars the state from imposing a tobacco tax on tribal retailers.

Two Seneca Nation retailers filed suit after Gov. David Paterson (D) signed a tobacco tax bill. As a result of the new law, they said their businesses were being threatened by creditors.

Paterson promised not to halt tobacco shipments to reservations but the court victory puts off the new law indefinitely because the state has not implemented regulations affecting tribal retailers. Similar rules have been in the works for at least a decade.

Despite the decision, Seneca President Barry E. Snyder Sr. said the tribe was open to negotiating the issue with Paterson.

Get the Story:
Another court ruling favors New York state Indian tribes on tax-free cigarette issue (The Syracuse Post-Standard 1/28)
Snyder hails extension of cigarette tax ban (The Buffalo News 1/28)
Court blocks tax collection from tribal stores (AP 1/27)

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