By Joyce Kryszak
http://stream.publicbroadcasting.net/production/mp3/wbfo/local-wbfo-921468.mp3
Buffalo, NY – New York state will not be collecting sales tax on cigarettes sold to non-Indians Wednesday as planned. A last minute restraining order was issued Tuesday by a federal judge, temporarily banning the state from collecting taxes on tobacco sales to non-Indians.
A rally is going on as planned Wednesday morning on the Cattauraugus Indian reservation in Irving. But Seneca leaders say it should be a peaceful one - not the angry protest many expected.
Fury over the planned collection of taxes on Native American tobacco sales was diffused for the time being by the order issued last Tuesday by United States District Judge Richard Arcaca. He begins a hearing Thursday to determine whether or not to issue a permanent injunction. Seneca senior council Robert Porter said the underlying dispute continues.
"It doesn't solve the underlying problem, but I do think the judge understands that this is a complex problem and it's going to take a little bit of time to work through the legalities," said Porter. "And ultimately what we beleive to be the right position that the state has no authority to tax in our territory."
The governor's office did not return WBFO's calls for comment. But the state has argued that Native Americans have an unfair advantage because they are not taxed and can sell their tobacco products cheaper than non-Indian sellers.
J.C Seneca owns Native Pride smoke shop. He said if the state ultimately prevails, he refuses to pay the taxes. Seneca said he has arranged to buy all his brand name cigarettes from out of state wholesalers. He says he's within his rights. And he said polls show even most non-Indian New Yorkers agree.
"They've been speaking out, trying to send a message to Albany to leave us alone, let us do our business," said Seneca. "They're upset about what the state is trying to do."
Seneca attorney Porter said they are prepared to fight as long as necessary to protect their sovereignty.
"It's important to understand these battles have been going on for over two hundred years. And we have fought battles over the title to our land, the jurisdictions over our land, our waters - and now our commerce," said Porter. "So, this is just one battle of many that will undoubtedly occur, and I think our people understand that."
Although the restraining order was issued on behalf of the Seneca and Cayuga Nation of Indians, Porter says the order temporarily bans the collection of taxes from any Indian tribe in New York.