NYS taxes on Native American cigarette sales on hold

By Joyce Kryszak

Buffalo, NY – Following an Appellate court decision Wednesday, state officials said, for now, the state won't attempt to collect any cigarette sales taxes from any Native American tribe in New York.

The state was already blocked from collecting taxes from the Seneca and Cayuga Nations. That restrainng order came Tuesday from United States District Court. But an earlier State Supreme Court ruling on Monday - which vacated previous restraining orders - left the door open for the state to collect taxes from the other four New York tribes.

Now, the Fourth Appellate Division has reinstated those previous restraining orders. And that indefinitely bars the state from collecting the taxes from any tribe in the state.

But it is not over. A final decision on the matter is still pending in both federal and state court. "I'm just afraid things could ugly, with the Nation Guard hereand everything else," said Jennifer Jamison. "They just keep pushing. They won't give it up."

Jennifer Jamison was one of about a hundred Seneca supporters who turned out for twin rallies at the Cattarugus reservation yesterday. Like Jamison, others had predicted violence if the state had been allowed to go through with the tax collection. But Jamison, who works at a Seneca smoke shop, says their worries won't be over as long as a state victory is possible. "I'm just really scared and stressed out. I work here - I need a job," said Jamison.

The state has argued that Native Americans have an unfair advantage over non-Indian tobacco sellers. The Governor's office declined an interview. But in a written statement a spokeswoman said the state does expect to prevail. The Seneca Nation also sent out a statement saying they will continue to challenge what they call the "State's misguided taxing scheme."

Final court decisions will likely take weeks.

Seneca smoke shop owner J.C. Seneca said he will be ready when those decisions come - even if they favor of the state.

"We've made provisions here to be able to continue supply lines coming into the territory without going through a New York state wholesaler," said Seneca. "We're going to continu to move in that direction."

And if that effort fails, Seneca said he and others are prepared to sell only Native American brands. Legal arguments to consider a permanent injunction begin in Buffalo's U.S. District Court Thursday.