A federal judge extended a temporary restraining order that bars the state of New York from imposing its tobacco tax on the Seneca Nation.

The order was due to expire today. Judge Richard J. Arcara extended it indefinitely yet at the same time declined to issue a preliminary injunction against the state.

Under a new state law and regulation, wholesalers that sell tobacco to tribal retailers must prepay the state's tax. The plan essentially forces tribal retailers to collect the state's tax on tobacco sold to non-Indians.

Tobacco sold to tribal members will remain tax-free. But the state gets to determine how much each tribal retailer gets, based on U.S. Census Bureau data on reservations.

Get the Story:
Tax ban extended on Indian cigarettes (The Buffalo News 10/15)
Candidates Differ On Seneca Tax Issues (The Jamestown Post-Journal 10/15)

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