In New York state there’s been a festering battle between state government and Indian tribes regarding cigarette sales. There were several developments last week.
Judge Kenneth Fisher of the state Supreme Court (equivalent to a district court in California) ruled that the Cayuga Indian nation cannot sell tax-free cigarettes at its stores in Union Springs and Seneca Falls, New York. Judge Fisher noted that the stores are not on Indian reservations. District attorneys in Cayuga and Seneca counties plan on presenting charges to grand juries. The Cayuga Indian tribe will appeal, and that battle could last years.
Meanwhile, a bill that would tax all Indian cigarette sales in New York is awaiting the signature of Governor David Paterson. Indian nations complain that this legislation, if signed, is an attack on their sovereignty. The Buffalo News is reporting that Paterson will sign the legislation though it will take some time to craft regulations to enforce the new law. Additionally, a legal challenge by the Indian tribes is almost certain.
Finally, the New York Times has an excellent article exploring New York City’s battle with a nearby Indian tribe that sells a lot of tobacco. New York City is suing the tribe. With most government budgets being under stress you can expect all local governments to go after anything that even looks remotely promising as a source of funds.