Updated 08/31/2010 04:16 PM
Judge orders hold on taxes set for Native American tobacco sales
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
BUFFALO, NY - A federal judge issued a temporary restraining order stopping New York State plans to begin collecting taxes on Native American tobacco sales to non-Native Americans Wednesday.
The decision by U.S. District Judge Richard Arcara provides relief to tribes, including the Seneca Nation, that are battling the state's tax collection law due to take effect at midnight.
U.S. District Judge Richard J. Arcara gave a temporary reprieve this afternoon to Native American tribes trying to fight off the state's efforts to collect taxes on cigarette sales to non-Indians.
The order protects cigarette sales by Native American businesses for at least two weeks.
Both sides will meet in court to continue negotiations Thursday.
The new taxation threatened hostilities on Seneca Nation reservations in Western New York. Federal and state authorities are reportedly preparing for any efforts by those protesting the law to violently protest the law's enactment.
Advocates of New York's taxation plan believe Native American tribes have received a competitive advantage over other non-Indian businesses forced by the state to collect $4.35 in taxes for each pack of cigarettes.
The ruling comes just a day after the Seneca Nation struck back at New York State following a judge's refusal Monday to block the state from taxing reservation cigarette sales to non-native customers.
Seneca Nation leaders voted to withhold future exclusivity payments to the state, claiming that the state violated terms of the 2001 gaming compact which allowed the nation to establish class three casinos.
Nation leaders say New York violated another Indian treaty when it authorized casino-like operations in Hamburg, Batavia and the Finger Lakes.
In a statement, Seneca Nation spokesperson J.C. Seneca said, "the state authorized casino-like operations in Hamburg, Batavia and the Finger Lakes, and late last year the state approved "moxie mania." we have run out of patience. We are tired of the ongoing process of the state violating more of our treaty rights, our sovereign rights and the gaming compact."
The nation has already paid more than 700 million dollars to the state in "slot fees" since the 2001 compact.
The tribe also cited a judge's ruling Monday to lift injunctions which had prevented the state from taxing Indian cigarette sales. The state plans to begin tax collections Wednesday.