A federal judge ordered retailers on the Poospatuck Reservation to stop selling tobacco products to non-Indians until a lawsuit over tax-free cigarettes can be resolved.

Judge Carol Amon granted an injunction sought by New York City, whose mayor has led the fight against the reservation smoke shops. He claims they are cheating the city out of millions of dollars in tax revenue.

"The city will go after every dollar that is owed to city taxpayers," said Mayor Michael Bloomberg. "Based on the evidence introduced at the four-day hearing, the Court found that each business was selling huge quantities of cigarettes on which state and city taxes had not been paid."

The retailers are not operated directly by the Unkechaug Indian Nation, a state-recognized tribe. Amon previously ruled that they cannot raise a sovereign immunity defense.

Chief Harry Wallace, an attorney, supports the smoke shops, who can appeal the injunction. The reservation is located on Long Island, near New York City.

Get the Story:
New York Wins Round in Fight Against Indian Tobacco Vendors (The New York Times 8/27)
Judge halts tribe's cigarette sales to nonmembers (Newsday 8/27)
Judge delivers blow to NY reservation smoke shops (AP 8/27)
Press Release: MAYOR BLOOMBERG ANNOUNCES FEDERAL COURT ORDER THAT BLOCKS ILLEGAL CIGARETTE SALES BY LONG ISLAND INDIAN SMOKE SHOPS THAT HAVE COST NEW YORK CITY TAXPAYERS MILLIONS IN LOST REVENUE (Mayor Bloomberg 8/26)

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