Court Ruling Paves Way For NYS To Begin Collecting Taxes On Cigarette Sales

Utica, NY (WIBX) - A federal appellate court unanimously voted to allow the state to collect taxes on cigarettes sold on Native American reservations. The decision came down today, from The U.S. Court of Appeals for the Second Circuit, and it upholds a law enacted last year that mandates New York State begin collecting the tax on all cigarette sales.

In a released statement, President of the New York Association of Convenience Stores, James Calvin, said, "We are very pleased with today's decision, which strongly reaffirms the State's power to close this devastating loophole in the cigarette tax system. We are encouraged that the State will move swiftly to enforce the law, giving law-abiding retailers a fair chance to compete, and ending a problem that is fueling enormous contraband activity in the State."

In the same release, Chairman of the Madison County Board of Supervisors, John Becker said, "Today's ruling is a victory for taxpayers, small business owners and local governments like Madison County. It moves us another step closer to achieving a level playing field."

In a released statement, Mark Emery, Director of Media Relations, Oneida Nations, said, “The court's ruling against the tobacco distributors does not impact our ability to sell cigarettes at a reduced cost. We will continue to provide our customers with a selection of cigarette brands like Niagara's, Bishop, Great Country and Cool Harbor as they are manufactured on the Oneida homelands and not subject to state taxes. We will sell the remaining inventory of cigarette brands not manufactured on the Oneida Indian land."