St. Regis Tribe files suit over tax

The St. Regis Mohawk Tribe wants a federal judge to stop the state from taxing reservation cigarette sales.

The lawsuit filed Tuesday in U.S. District Court in Albany argues that the plan violates their federally protected rights and would force the tribe to discard its own regulatory system in order to enforce the state's plan.

The state plans to collect its $4.35 per pack sales tax on cigarettes sold by Native American retailers to nonnative customers as a way to raise an estimated $200 million a year.

"We have valid concerns about New York State law and how it impinges on our territory and on our self governance," St. Regis Mohawk Tribe Chief Monica M. Jacobs said in a statement Wednesday. "We try to remain productive with our economy to generate revenues to support health, law, education and other programs that benefit the community. The state of New York is prohibiting us from continuing our economic development for our territory. The intent of this law is clearly to interfere with our internal affairs."

The suit challenges amendments to the state's tax law that were enacted on June 21 and the emergency regulations declared by the state Department of Taxation and Finance in an effort to implement those provisions.

Gov. David A. Paterson's office declined to comment on the filing Wednesday. Taxation and Finance Department spokesman Brad Maione said Wednesday the department would move forward with plans to implement the tax beginning Sept. 1.

The Seneca Indian Nation filed a similar lawsuit last week in federal court in Buffalo, along with seeking an injunction to delay the collection of cigarette-tax revenue on reservations.