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Feb 2nd, 2007 - 16:31:59

Tension Over Indian Cigarette Sales Eased


Nov 14, 2006, 17:39

(AP) -- The state Tax Department has advised aBuffalo cigarette wholesaler it can ignore a new law requiring tax collection on tobacco products sold to Seneca Nation and other Indian businesses.That eased tensions on Indian reservations since nervous suppliers cut off shipments to smoke shops earlier in the week.Supplier Milhem Attea and Brothers resumed shipping cigarettes to Seneca smoke shops. Spokeswoman Rosemary Saffire tells The Buffalo News -- quote -- "We have it in writing, so we can take it to a judge and say, "Look, we have permission."'The Tax Department says it had a "long-standing policy of allowing untaxed cigarettes" to be sold to Indian retailers, while noting Governor Pataki has proposed changing the law that kicked in March 1st.However, the state Legislature this week rejected delaying the law, and State Attorney General Eliot Spitzer has warned wholesalers it's in effect.Richard Nephew, chief executive of the Seneca Nation, says the letter sounds like a temporary fix.On the Tuscarora Reservation, residents gathered by a bonfire last night with signs urging passing motorists to support treaties.

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