NY court mulls order barring Indian cigarette tax

ROCHESTER -- A New York appeals court is weighing whether to extend an order blocking the state from collecting taxes on cigarettes sold by Native American stores to non-Indian customers.

A state appellate judge in Rochester restored a restraining order last week that barred the state from collecting the $4.35-per-pack tax. The court's five-judge panel is taking up the case Thursday, but it's not clear how soon a decision will be issued.

A federal judge in Buffalo has already temporarily blocked tax collections from two Indian nations -- the Senecas and Cayugas -- and scheduled a hearing for Tuesday. The appellate court order applies to all nine New York tribes battling to preserve their tax-free cigarette business.

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