Court delays ruling on tribe's tax feud with NY

BUFFALO, N.Y. (AP) – A federal judge is delaying a decision on the Seneca Indian Nation's request for a restraining order to block New York from imposing steep new taxes on cigarettes sold on Indian reservations.

To help close a mammoth budget gap, Gov. David Paterson is vowing to collect a $4.35-per-pack tax on cigarettes sold by Native American retailers to non-Indian customers beginning Wednesday.

At a hearing in Buffalo on Friday, U.S. District Judge Richard Arcara reserved decision on the Senecas' request. He indicated that the attorneys would return for a hearing next week.

Lawyers for the Senecas filed a request last week for a temporary restraining order to stop the state from imposing new cigarette taxes at the tribe's two reservations in western New York.