The New York Court of Appeals sided with the Cayuga Nation in a tobacco tax case.

The court said the tribe can continue to sell tobacco at two smoke shops. The facilities are located on "qualified reservation" property -- as that term is defined by state law -- even though the properties are the subject of a pending land-into-trust application.

"But based on existing precedent and federal consideration of the fee-for-trust application, the United States government continues to recognize the existence of a Cayuga reservation in New York," the court said in a 4-3 decision.

The court said the tribe cannot sell tobacco to non-Indians without collecting a state tax. However, the state has yet to implement regulations that would facilitate the process so the court said it would be "unduly burdensome' to force the tribe to pay the taxes at this time.

The appeals court is the highest court in the state.

Get the Story:
Court nixes cigarette tax case against Cayuga Indian Nation (AP 5/11)

New York Court of Appeals Decision:
Cayuga Nation v. Gould (May 11, 2010)

New York Appellate Division Decision:
Cayuga Nation v. Gould (July 10, 2009)

New York Supreme Court Decision:
Cayuga Nation v. Gould (December 9, 2008)

Related Stories:
New York court hears Cayuga Nation tobacco tax lawsuit (3/25)
DOJ brief backs Cayuga Nation in tobacco tax dispute (02/25)
Editorial: Cayuga Nation tobacco battle a big issue (2/22)
Cayuga Nation wants seized cigarettes back (7/17)
Second county rejects Cayuga tobacco tax offer (7/16)
County to appeal Cayuga Nation tobacco case (7/15)
Cayuga Nation offers settlement in tobacco case (7/14)
Cayuga Nation wins tobacco taxation decision (7/13)
Battle over Cayuga Nation tobacco continues (3/6)
Cayuga Nation halts sale of tax-free cigarettes (2/20)
Judge rules against Cayuga Nation tobacco sales (2/19)
Cayuga Nation to reopen disputed smoke shops (01/30)
Court halts Cayuga Nation tobacco prosecution (01/22)
Cayuga Nation seeks halt to tobacco prosecution (1/13)
Cayuga Nation plans to fight tobacco tax charges (12/10)
Cayuga Nation in court over raid of smokeshops (12/4)
Cayuga Nation claims 'reservation' exemption (12/2)
Cayuga Nation heads to court after smokeshop raid (12/1)
County authorities raid Cayuga Nation smoke shops (11/26)