Ruling favors NY in smokeshop tax fight

BUFFALO, N.Y. (AP) – There's been another federal court ruling New York's attempts to tax most Indian reservation smokeshop sales, but the issue is far from settled.

U.S. District Judge Richard Arcara in Buffalo has denied a request to block the state from collecting sales tax on cigarettes sold to non-Indians. But he froze his decision so the two tribes who requested the order can appeal.

That means New York still can't start collecting the $4.35-per-pack sales tax until a higher court, the Second Circuit Court of Appeals, hears the case.

The latest ruling was issued Tuesday in a case brought by the Unkechaug and St. Regis Mohawk tribes. It mirrors an earlier decision in a challenge by the Seneca and Cayuga nations.

It's unknown how long the appeals process will take.