Tax collection halted on Indian smokes

CATTARAUGUS RESERVATION, N.Y. (WIVB) - The tobacco tax battle is filtering into new territory. For now, the tax collection plan on cigarettes sold by Native American retailers to non-Indian customers is on hold.

The state of New York says it will not enforce cigarette tax collections against any Indian tribes, for now. That's because a state appeals judge in Rochester reinstated a temporary restraining order. A spokesman for Governor Paterson tells News 4, "Despite the ruling, we believe the state's legal arguments are sound and we believe that state will prevail."

Meanwhile, Native Americans gathered on the Cattaraugus Territory not from Interstate 90. Neville Spring, a Tonawanda Seneca, says the target on the front of his shirt symbolizes how he feels.

Spring said, "It's open season on Indians. My elders before me fought. I'm fighting now. My children will be fighting. And we shouldn't be doing this."

The Senecas say the tax not only threatens their financial well-being, they say it violates their sovereignty. Tribal councilor Travis Jimerson says the nation has even tried to reach out to President Obama for assistance.

"We've sent numerous letters to him, and he continues to ignore us. He's violating his oath to office as far as being President of the United States, and it's in the United States Constitution that he will defend all treaties," argued Jimerson.

Jim Calvin, President of the New York Association of Convenience Stores, says some western New York stores have lost 45 to 50 percent of their cigarette units sales since the taxes jumped on July 1st.

"We are recommending to the governor that he issue an executive order suspending that 58 percent tax hike on cigarettes that took effect July 1st in fairness to our retail members," said Calvin.

There's already a 14 day federal court ban on state tax collection action on tobacco sales by the Seneca and Cayuga Nations. Lawyers for those parties and the state are due back in federal court Thursday afternoon.