Business | Law

New York judge bars tobacco tax on sales to Seneca Nation

A judge in New York barred the state from imposing its tobacco tax on sales to the Seneca Nation, a day after a federal appeals court said the plan was legal.

The judge's order will stay in place until June 1, The Buffalo News reported. The injunction only affects wholesalers who do business with the Senecas.

The ruling came after Gov. Andrew Cuomo (D) said the state would collect the tax. The 2nd Circuit Court of Appeals on Monday said the state's effort doesn't infringe on tribal sovereignty.

"We will continue fighting against this overreaching action by the State to protect our treaty rights, tobacco commerce and all the jobs it supports," Seneca President Robert Odawi Porter. said in a statement.

Get the Story:
State barred from collecting tobacco taxes (The Buffalo News 5/10)
State set to get tax on Indian cigarette sales (The Buffalo News 5/10)
State vows to collect taxes on Indian reservation cigarette sales (The Syracuse Post-Standard 5/10)

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

Related Stories:
2nd Circuit lifts injunction in New York tribal tobacco tax feud (5/9)

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