A court in New York cleared the way for the state to impose a tobacco tax on the reservation as litigation continued in federal court.

The state did not say whether it would immediately start forcing wholesalers that supply tobacco to tribes to pay the tax. But tribes are expected to appeal the decision.

The state court ruling does not apply to the Seneca Nation and the Cayuga Nation Both tribes have a temporary restraining order in federal court that has been extended to September 28.

The Seneca Nation was back in federal court on Tuesday to present more arguments in the case. The tribe collected $45 million in fees for tobacco sales on the reservation to fund governmental services, an attorney said.

Separately, the Oneida Nation and the St. Regis Mohawk Tribe have filed lawsuits against the state in federal court. The Oneidas say they will ask for an injunction to block the tobacco tax.

Get the Story:
Legal battle over cigarette tax continues (The Buffalo News 9/15)
NY court allows Indian cigarette tax (AP 9/14)
Senecas, NYS resume smoke tax fight (Business First of Buffalo 9/14)
New York tribes fight for tax-free cigarettes (AP 9/14)

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

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

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