Appeals Court Lifts Temporary Ban on Cigarette Tax Collection

September 14, 2010 Updated Sep 14, 2010 at 6:14 PM EDT

By WKBW Programming

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September 14, 2010 Updated Sep 14, 2010 at 6:14 PM EDT

ROCHESTER, NY (WKBW) - A State Appeals Court in Rochester lifted a temporary order barring New York State from collecting taxes on cigarettes sold to non-natives and Indian land late Tuesday afternoon.

Earlier this month, an appellate judge restored the restraining order, keeping New York from collecting those taxes. That ruling was reversed in Tuesday's decision, allowing the state to collect the $4.34 tax per pack of cigarettes.

A hearing is also underway in Federal Court where a judge had already temporarily blocked the state from collecting taxes from the Seneca and Cayuga Indians. No decision has been made in that case.

The Seneca Nation of Indians and Governor Paterson have not commented on the court's ruling.