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NY Set to Tax Cigarettes on Indian Reservations

By musiclover - Tue Aug 31, 2:55 pm

New York, the nation’s third-most populous state, may begin collecting taxes as soon as tomorrow on cigarettes sold by Indians from their reservations to non- tribal buyers after a judge refused to block the levies.

The Seneca Nation of Indians has been fighting to bar the collections, which are set to begin Sept. 1 under a law passed in June. The levy is projected to produce $150 million by March, according to the state budget, and may help close a $9.2 billion gap in the $136 billion spending plan for fiscal 2011.

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