Judge Blocks Cigarette Tax … For Now

Wednesday, Jul 22, 2009  |  Updated 10:35 AM EDT
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Judge Blocks Cigarette Tax … For Now

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Cigarettes sold on Indian reservations won't be taxed in New York -- at least, not yet.

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A judge has temporarily barred state officials from enforcing a new law that would tax cigarettes sold on Indian reservations.
 
State Supreme Court Justice Rose Sconiers signed the order this week in Buffalo. A wholesale company and a businessman had sought to ban the law until the state takes certain actions, including giving tax-exempt coupons to Indian tribes.

  Sconiers scheduled a Jan. 27 hearing for state officials to show why she shouldn't issue a permanent injunction against the law.
 
The law, signed by Gov. David Paterson this month, is not set to take effect until February. It bans manufacturers from selling unstamped tobacco products to wholesalers that would supply Indian-owned stores.
 
Paterson spokesman Morgan Hook says the state will comply with the judge's order while it reviews it.

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