A judge on Wednesday ruled that the state of New York will not be able to collect taxes on cigarettes sold by Indian retailers to non-Indians for another week.

Erie County Judge Donna Siwek will consider the Seneca Nation's challenge to the regulations that govern collections and issue a written decision within a week, reports The Associated Press.
The Senecas want to force the state taxation department to rewrite the rules, arguing the department did not follow its own rules in creating them. The department allegedly did not consider the negative impact of regulations on the western New York tribe and its businesses.
Last month Gov. Andrew Cuomo's administration was preparing to begin collecting tax on smoke shop sales statewide, anticipating USD 500,000 a day in revenue. The state of New York plans to tax Native American sales without going onto reservations by requiring cigarette wholesalers to pay the sales taxes before they supply reservation stores. Wholesalers would pass along the levy to tribal retailers, who would have to raise their prices.
The Senecas won the temporary restraining order that is now in place.
It is the latest face-off in a dispute between New York and American Indian tribes that dates to 1988. The Indian nations argue that as sovereign nations they are exempt from taxation, while the state says it has the right to tax non-Indian customers.
Wednesday's hearing didn't address the tribe's long standing opposition to the tax itself. (pi)