Cig tax delayed until March

The back-and-forth court battle between New York State and Indian tribes continued this past week with the latest ruling favoring (for the time being) Akwesasne and the other tribal communities fighting the state’s cigarette tax imposition.

On Dec. 9, the Second Circuit Court of Appeals denied a motion filed by the state that would have lifted an injunction granted previously to the St. Regis Mohawk Tribe. The injunction prevents New York from enforcing a cigarette tax law that requires tribes in New York to tax non-Natives purchasing major brands of tobacco.

The court also ruled that the injunction must remain in place until the SRMT’s case against the state is finalized which isn’t expected until at least March of 2011. The SRMT already lost their case before the court but immediately filed an appeal to the ruling which is the next court decision to be made.

In the Dec. 9 ruling, the court also expedited the case and the SRMT’s opening brief date is January 21, 2011 with the state’s response scheduled for Feb. 4. The SRMT anticipates the hearing to take place sometime in March, 2011.

“We anticipate a hearing in March, with a decision relatively quickly after that,” said Michele Mitchell, attorney for the SRMT. “That decision, whether in our favor or not, will likely be appealed to the Supreme Court, because if we lose, we will certainly appeal, and if the state loses, they will definitely appeal.  The

Supreme Court can then either hear the case, or let the Second Circuit

decision stand.”