Judge Will Not Block Tax Collection

August 30, 2010 Updated Aug 30, 2010 at 8:36 PM EDT

By WKBW Programming

August 30, 2010 Updated Aug 30, 2010 at 8:36 PM EDT

BUFFALO, NY (WKBW) - A State Supreme Judge will not block New York State from collecting taxes on cigarettes sold to non-natives on Indian reservations. That word coming down late Monday afternoon in Buffalo.

Eyewitness News obtained a statement from the Seneca Nation of Indians President Barry E. Snyder Sr. on the State Supreme Court ruling in "Day Wholesale v. State Of New York."

“We are disappointed State Supreme Court Justice Siwek did not keep the tax impositions injunction in place, however, our legal efforts are far from over.

We will be filing an expedited appeal motion with the Appellate Division of State Supreme Court and we remain hopeful Judge Arcara will grant our request a Temporary Restraining Order in the separate Federal case.

We will return to federal court tomorrow afternoon to renew our motion for the TRO. It is our intention to block the New York State from ever collecting a penny of tax on sales of tobacco by the Seneca Nation or any other Native American nation under this ill-conceived taxing scheme.”

The Senecas say that collecting any taxes on their reservation violates treaties.

"New York State is not going to collect one penny of tax from the Seneca Nation. We're going to fight this and we're going to find ways to succeed and weather this economic storm that we are in," said J.C. Seneca, business owner and Tribal Council member.

In the meantime, some Native American resellers have said they will discontinue the resale of major tobacco brands to avoid any tax, and just sell Indian brand cigarettes made on native territory.

Channel 7's Eyewitness News will continue to follow the legal ramifications and reaction to this decision.