Judge: 2 NY Tobcacco Wholesalers Broke Law

by Associated Press
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Cigarette Butts
fattybacon, flickr

Judgement is a step forward in NY's battle to tax cigarettes in Indian Reservations.

A judge has ruled two tobacco wholesalers broke the law selling untaxed cigarettes to retailers on an Indian reservation that then resold them at reduced prices in New York.

The judgment is a victory for New York. It's waged a legal battle for years to collect taxes on cigarettes sold by Indian-owned businesses to non-Indians.

According to The New York Times, Judge Carol Amon said Long Island company, Mauro Pennisi, sold more than 11 million cartons of untaxed cigarettes to Indian retailers on the Poospatuck Reservation from 2008 to 2011. She said Gutlove & Shirvint, a Queens company, sold a similar amount to the same tribe.
 
Both companies voluntarily stopped selling to the Indian retailers after the city sued in 2006. But Amon ruled they should've stopped sooner.

 

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