By Joyce Kryszak
Buffalo, NY – A federal judge has issued a temporary restraining order to prevent the State from collecting sales taxes on cigarettes sold by Native Americans to non-Indian customers.
U.S. District Court Judge Richard Arcara granted a temporary restraining order to the Seneca Nation and Cayuga Nation of Indians. The TRO blocks, at least for now, the state from collecting taxes on cigarettes sold to non-Indians on Reservations.
But the decision is not a final ruling on the state's legal effort to collect millions of dollars in taxes. Both parties are due back in court Thursday to begin a full hearing on whether or not a permanent injunction should be ordered.
Seneca leaders said they are happy with the decision, but still plan to rally Wednesday to voice their strong opposition on any state taxes on Indian property.