Updated 08/31/2010 03:53 PM
Court Temporarily Halts Indian Cigarette Tax
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A federal judge Tuesday temporarily blocked New York State's legislation taxing reservation cigarette sales to non-Indian customers.
A state judge yesterday refused to block the state from enforcing a $4.35 per pack tax starting tomorrow.
The ruling delays the collections for at least two weeks.
Seneca Indian Nation officials had argued that the state circumvented procedures by adopting the regulations on an emergency basis.
The tax is expected to generate an estimated $200 million a year in revenues for the state.
Tribes argue the plan infringes on their sovereignty and could damage their economies.