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: Breaking Legal News

Judge mulls blocking NY tax on reservation sales

By (Breaking Legal News)

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The dominant Indian nation in New York's lucrative tax-free cigarette market says it should remain exempt from the state's plans to tax most reservation sales because those plans are flawed.

Lawyers for the Seneca Nation, along with Cayuga Nation lawyers, argued in federal court in Buffalo on Thursday for a preliminary injunction, saying the state's untested system for collecting the $4.35-per-pack tax on sales to non-Indian smokeshop customers would excessively burden tribal governments.

The judge took no action but left a temporary order blocking collections in place until Oct. 15. It's one of three separate court orders now preventing the state from going forward with the tax as planned Sept. 1.

At least five New York Indian nations are fighting the tax in court.

Full post as published by Breaking Legal News on September 24, 2010 (boomark / email).

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