Judge Extends Indian Cigarette Tax Restraining Order

October 15, 2010 Updated Oct 15, 2010 at 11:47 AM EDT

By WKBW Programming

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Judge Extends Indian Cigarette Tax Restraining Order

October 15, 2010 Updated Oct 15, 2010 at 11:47 AM EDT

BUFFALO, NY (WKBW) - A Federal judge has extended the temporary restraining order preventing New York from collecting sales tax on cigarettes sold on Native American territory.

U.S. District Court Judge Richard Arcara made his ruling Thursday that allows the Seneca Nation of Indians to continue to sell tax free cigarettes to non-Indian customers. The restraining order was set to expire Friday.

It wasn't all good news for the Seneca Indians, however. Judge Arcara rejected the claim that any attempt by the state to collect sales taxes would be unconstitutional, saying that they had "failed to demonstrate a likelihood" of being able to convince higher courts of that point, according to Business First.

Seneca Nation President Barry Snyder released the following statement regarding the courts ruling:

"We are extremely disappointed that the Court did not grant us the injunction we were seeking against the State’s tobacco tax scheme. Nevertheless, we are thankful that he granted our motion for a stay pending appeal and the State still cannot enforce their unlawful and improper tax scheme against the Seneca people. This fight is far from over.”