NEW YORK - This week, the Second Circuit Court of Appeals decided that New York could collect cigarette taxes on purchases made by non-Indians from Indian retailers, the Buffalo News reports. The New York Tax Department posted collection regulations online immediately requiring wholesalers to tack on New York??s $4.35 per-pack tax on each cigarette pack sold to Native American retailers.

"After 20 years, it??s about time," said Lyle Beckwith, NACS senior vice president of government relations.

"We will now begin the implementation phase as we move to collect these taxes," said Gov. Andrew Cuomo. "I have always said that taxes on cigarettes sold to non-tribal members must be collected because this is revenue rightly owed to the state, and with this decision, my administration will move to do so expeditiously."

New York Attorney General Eric Schneiderman said the decision enables the state to realize around half a million dollars daily from cigarette sales to non-Indian customers by Native American retailers. The governor??s budget estimates it will gain more than $100 million from these collections.

The Seneca Nation of Indians has indicated they will not stop fighting this tax collection. "We will continue fighting against this overreaching action by the state to protect our treaty rights, tobacco commerce and all the jobs it supports," said Seneca President Robert Odawi Porter. "The Seneca Nation will not be New York State's tax collector."

New York has been eyeing Indian tobacco taxes for years, but has only recently begun to go after those tax dollars. The New York Association of Convenience Stores (NYACS) has long supported taxing sales of cigarettes to non-Indian customers from Indian retailers.

"We think it's a victory for taxpayers and the fundamental principle of fairness," said James Calvin, NYACS executive director. He thinks some of the tribes may take the matter further to the U.S. Supreme Court.