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Judge says no to taxes on Indian cigarettes


A state Supreme Court judge ruled that the state cannot collect taxes from cigarettes sold on Indian reservations in New York.

Judge Rose Sconiers issued a preliminary injunction Jan. 2 barring the state from enforcing controversial tax amendments to Tax Law Section 471-e. She found that the tax law was not in effect due to the state's failure to create a fair tax exemption system for Native Americans and other deficiencies.

In the case of Day Wholesale Inc. and Scott B. Maybee v. State of New York, it is stated that "the order to show cause seeks a preliminary injunction enjoining enforcement of Tax Law Section 471-e until certain actions are taken, including the issuance of enabling regulations and the distribution of Indian tax-exempt coupons."

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