Appellate Division Allows Tax Collection to Resume in NY

Appellate Division Allows Tax Collection to Resume

The on-again, off-again enforcement of tax collection in Indian sales of cigarettes to non-Indian customers is on again -- for now -- following a ruling today by the Appellate Division of State Supreme Court.

Sitting in Rochester, the court upheld a lower-court ruling that the State of New York had followed proper procedures in adopting regulations governing the collection of such taxes, and lifted the previous restraining order imposed by one of its judges.

Thus, for the moment, the Cuomo administration can resume enforcement. However, the Seneca Indian Nation is vowing to seek permission to appeal to the state Court of Appeals. The key question will be whether they succeed in getting a new stay of enforcement while their request is pending. They are running out of legal options; who knows what other steps they might take to try to preserve the status quo?

NYACS will continue to keep you posted as we continue the quest for a level playing field for tax-collecting retailers.