As a result of the decision of the New York State Supreme Court, Appellate Division, Fourth Department, in Seneca Nation of Indians v. State of New York,No. 2011-000714, denying the Seneca Nation of Indians’ motion for preliminary injunction pending appeal and vacating the temporary restraining orders issued June 9, 2011, and June 10, 2011, the New York Department of Taxation and Finance will immediately implement the Indian cigarette tax exemption coupon system and the prior approval system. Wholesale dealers, including agents, are required to collect the cigarette excise tax and prepaid sales tax on all cigarettes sold for resale on an Indian reservation to non-Indians and non-members of an Indian nation or tribe. All packs of cigarettes sold by wholesale dealers to Indian nations and tribes and reservation cigarette sellers must have New York tax stamps affixed to them. Wholesale dealers may sell stamped packs of cigarettes to Indian nations and tribes and reservation cigarette sellers exempt from tax to the extent Indian tax exemption coupons are provided or to the extent prior approval is received from the tax department.
TSB-M-11(4.2)M, TSB-M-11(7.2)S, Taxpayer Guidance Division, New York Department of Taxation and Finance, June 21, 2011, ¶407-291
Explanations at ¶55-001
Explanations at ¶60-430