Smoke shops on the Poospatuck Reservation lost a last-minute appeal in their taxation battle with the state of New York.

In August, Judge Carol Amon ordered the smoke shops to stop selling tobacco products to non-Indians. The smoke shops asked the 2nd Circuit Court of Appeals for an emergency stay of the decision but the request was rejected yesterday.

As a result, the smoke shops must stop selling tobacco to non-Indians or collect the state's sales tax. They can continue to sell tax-free cigarettes to members of the Unkechaug Indian Nation, a state-recognized tribe.

New York City Mayor Mike Bloomberg sued the smoke shops last year, claiming they are cheating the city out of millions of dollars in tax revenues.

Get the Story:
Tax deadline looms for NY reservation smoke shops (AP 9/24)

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