Jump to full article: Queens (NY) Courier, 2010-09-08
Author: Community
Intro: A state appellate court blocked a new tax on Indian reservation cigarettes that tribal members were calling a drag on their economy.
The court's temporary restraining order, issued on August 31, prevents the state from collecting the $4.35 excise tax from the Seneca and Cayuga reservations. The tax would have gone into effect on September 1 and officials said it could have handed the state almost $200 million in tax revenue.
The Seneca and Cayuga reservations said the new tax uses them like a "piggy bank" and would damage their livelihood and take away their sovereignty by forcing them to charge non-tribal members more for a pack of smokes.
Governor David A. Paterson disagreed and said the new Indian reservation tax would generate funds desperately needed by the cash strapped state.
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