New York judge blocks state from imposing tobacco tax on tribes
Thursday, September 2, 2010
An appellate court judge in New York blocked the state from imposing a tobacco tax on reservations but Gov. David Paterson (D) said he would appeal.
The state is forcing wholesalers who sell tobacco to tribal retailers to pay the tax up front. That essentially forces tribes to collect the tax on the sale of tobacco to non-Indians.
On Tuesday, a federal judge put the law on hold for the Seneca Nation and the Cayuga Nation. The appellate court judge said the rest of the tribes can continue to sell tax-free tobacco until a September 9 hearing.
At $4.35 a pack, New York's tobacco tax is the highest in the nation.
EDITORIAL FOOTNOTE: Story taken from www.indianz.com