Court Blocks NY Tax Collection Plan

New York State didn’t start collecting taxes from Native American retailers today after all.

A state appellate court judge issued an order today stopping the collections. State Supreme Court Judge Donna Siwek had lifted an earlier order Monday. The Seneca and Cayuga nations appealed that decision.

Those tribes won a federal court order Tuesday temporarily barring collections against them. But the state said it would start imposing the $4.35 per pack tax on cigarettes shipped by wholesalers to other reservation retailers starting today. There is no end date for the restraining order.

Governor David Paterson says the state will continue its court battle and believes New York will prevail.

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