Victory for tribe tobacco sales
A state law intended to make non-Indians pay tax on cigarettes they buy from Indian retailers is not in effect because New York has yet to come up with a way to implement it, a judge ruled.
State Supreme Court Justice Rose Sconiers issued a preliminary injunction barring New York from enforcing the law that has been a source of confusion since it went on the books last March.
The Jan. 2 trial court decision was a victory for cigarette wholesalers and Indian retailers, who have argued that the state has not given them to the tools to comply with the law. For example, the statute exempts Indian customers from paying the state tax through special coupons, but no coupons have been issued.
"While the intent of the statute is to require that non-Indians who purchase cigarettes on Indian reservations pay the New York state stamp tax, the statute can only function if it properly exempts Indians purchasing cigarettes under circumstances where they are not lawfully required to pay such taxes," the decision said.
