New York ~ Tobacco, Sales and Use Taxes: Tax Collection on Seneca Nation Reservation Begins

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

Other References:

Explanations at ¶55-001

Explanations at ¶60-430


Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting