A federal judge temporarily blocked the state of New York from imposing its tobacco tax on the Seneca Nation and the Cayuga Nation but said the effort could go ahead on other reservations.

Judge Richard Arcara said the Seneca and Cayuga tribes can continue to sell tax-free cigarettes for another two weeks. A hearing will be scheduled on a permanent injunction against the state.

"Judge Arcara's ruling sets the stage for an orderly and thoughtful legal review of what we believe is an illegal, ill-conceived attempt by New York State to use the Seneca Nation, and other Indian Nations located within its boundaries, as piggy banks to balance the State Budget," Seneca Nation President Barry E. Snyder Sr., said in a press release.

Starting today, wholesalers that provide tobacco to tribal retailers must must pay the $4.35-per-pack tax in advance. The tax is essentially passed onto the tribes.

Tribes can sell tax-free tobacco -- but only to their members -- and the limit will be determined by the state.

Get the Story:
Senecas gain cigarette tax reprieve (The Buffalo News 9/1)
Seneca, Cayuga Indian tribes won't be taxed on cigarettes for at least two weeks (The New York Daily News 9/1)
Tribes win cigarette tax delay (The Albany Times-Union 9/1)
Judge allows Seneca, Cayuga nations to sell tax-free cigarettes (The Rochester Democrat and Chronicle 9/1)
Federal judge blocks implementation of cigarette tax for two western NY tribes (The Syracuse Post-Standard 9/1)
Schools Have Plan In Place In Case Of Road Closures (The Jamestown Post-Journal 9/1)
Tribal smoke break (AP 9/1)
New York Is Trying Again to Tax Indians’ Cigarette Sales (The New York Times 9/1)
On the reservation, resentment (The Buffalo News 9/1)
Collection of New York cigarette tax goes into effect Wednesday (The Syracuse Post-Standard 9/1)
State prepares to tax cigarettes on reservations (The Utica Observer-Dispatch 9/1)
Tensions Rise as Senecas Stop Casino Payments to NY State (WNED-AM 970 News 8/31)
Judge Clears New York State to Tax Cigarettes Sold on Indian Reservations (Bloomberg News 8/31)
Press Release: State Tax Dept. Implements Law Regulating Tax-Free Sales Of Cigarettes To Indian Reservation Cigarette Sellers (New York State Department of Taxation and Finance 8/31)

Relevant Documents:
ATF Letter on Tribal Consultation (May 19, 2010)

Prevent All Cigarette Trafficking Act:
H.R.1676 | S.1147

Related Stories:
Deadline looms for tribes in New York over state tobacco taxes (8/31)
Editorial: New York City mayor must apologize for cowboy remark (8/27)
Judge expected to issue ruling in Seneca Nation tobacco tax case (8/27)
New York governor cites potential for 'violence' over state taxes (8/27)
Onondaga Nation drops name brand tobacco amid state tax push (8/27)
New York governor condemns 'inappropriate' remark about tribes (8/26)
St. Regis Mohawk Tribe files lawsuit against state taxation efforts (8/26)
Oneida Nation drops name brand tobacco in favor of own product (8/26)
Column: Mayor alienates Indians who helped build New York City (8/25)
Editorial: New York City mayor must apologize for cowboy remark (8/25)
New York tribes continue meetings over state tobacco tax efforts (8/25)
New York tribes united in opposition to state's tobacco efforts (08/19)
Seneca Nation sues to halt state taxation of reservation tobacco (08/18)
New York mayor wants tribes shown the 'shotgun' for tax issues (8/16)
Editorial: New York must take action against tribes over tobacco (8/16)
Judge won't continue injunction against tobacco trafficking law (8/13)
Editorial: New York tribes get more business by avoiding taxes (8/13)
State to return tobacco products and truck to Seneca retailer (8/12)
Tribal retailers see business boost after New York tobacco hike (8/11)
Seneca Nation business owner blasts state seizure of tobacco (8/10)
Reward doubled over derailment attempt on Seneca Nation land (07/23)
County lawmaker eyes support on tax free Seneca Nation tobacco (7/21)
Judge extends PACT Act restraining order for Seneca businesses (7/8)
Seneca Nation smoke shops shut down mail-order operations (6/30)
Seneca Nation smoke shop gets restraining order for PACT Act (6/29)
Seneca Nation defends tobacco sales on treaty anniversary (05/24)
ATF schedules tribal consultation on tobacco trafficking law (5/20)
Obama signs cigarette trafficking bill over tribal objections (4/1)
Seneca Nation asks Obama to veto cigarette mailing bill (03/19)
Cigarette trafficking bill sent to White House for review (3/18)
Editorial: PACT Act puts a halt to Internet tobacco sales (3/17)
White House weighs stance on cigarette trafficking bill (3/16)
Seneca Nation blasts passage of cigarette trafficking bill (3/15)
Lance Morgan: PACT Act a hidden power grab for states (3/12)
Seneca Nation lobbies against cigarette trafficking bill (3/8)
New York governor proposes tobacco tax regulations (02/24)
Seneca Nation targets Sen. Gillibrand for tobacco bill (01/25)
Seneca Nation prepares for battle over cigarette taxes (1/20)
New York governor puts Indian tobacco tax in new budget (1/19)
Seneca Nation aims to defeat cigarette trafficking bill (01/12)