NEW YORK - In a turnaround from previous promises - or threats - to collect state taxes on tribal cigarette sales, the New York state attorney general's office is seeking a declaratory judgment verifying that tribal nations and the distributors who sell them cigarettes are exempt from paying tobacco excise taxes.
The ruling, if granted, could be a de facto affirmation of tribal sovereignty and immunity; but tribal leaders expressed wariness in their response to the legal action - perhaps understandably, since the state's motion is not necessarily
motivated by a pure intention to support Indian sovereignty and immunity, but appears to be a tactic driven by the desire to avoid further lawsuits from the big tobacco companies.
A positive ruling could put to rest years of struggles between the tribes and state for tax sovereignty, and reaffirm previous court decisions.
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