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08/30/2010 09:36 PM

State judge rules against Seneca's; state can collect cigarette tax

By: YNN Staff

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BUFFALO, N.Y. -- It’s another setback for the Seneca Indian Nation and their crusade against New York State’s taxation of cigarettes sold on their reservations.

Monday a state judge refused to block the state from taxing reservation cigarette sales to non-native customers.

Seneca Indian Nation attorneys argued a 2009 court order blocking the state from taxing Native American cigarette sales should remain in place.

The judge ruled the new laws make any previous court orders moot.

The Seneca Nation President issued this statement in response to the ruling: "We are disappointed State Supreme Court Justice Siwek did not keep the tax impositions injunction in place, however, our legal efforts are far from over. We will be filing an expedited appeal motion with the Appellate Division of State Supreme Court and we remain hopeful Judge Arcara will grant our request a Temporary Restraining Order in the separate Federal case. It is our intention to block the New York State from ever collecting a penny of tax on sales of tobacco by the Seneca Nation or any other Native American nation under this ill-conceived taxing scheme."

The $4.35 per pack tax collection is set to begin on Wednesday. The Seneca Nation is also challenging the tax in federal court. A decision is expected as early as Tuesday.