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Collect of state taxes on Indian cigarettes remains on hold

By Eileen Buckley

Buffalo, NY – U.S. District Court Judge Richard Arcara has extend a temporary restraining order to indefinitely block the state from collecting taxes on some Indian cigarette sales.

The order was set to expire Friday.

Judge Arcara's order prevents New York State from taxing cigarettes sold to non-native Americans at the Seneca and Cayuga Nations until further notice.

But Arcara also issued a separate order that is not a victory for the Senecas. The judge threw out some arguments made on behalf of the Native American tribes. Arcara, in his ruling, wrote he is not convinced the state's plan to collect taxes on those cigarettes sold to non-Indians would violate the nation's sovereignty.