New York Appellate Court Justice Samuel Green earlier this week issued a stay regarding the August 30 State Supreme Court ruling in the "Day Wholesale v. State of New York" tobacco tax case. The Green ruling temporarily enjoins the state from collecting tobacco taxes from all Native American tobacco sellers within state boundaries.

The ruling by the Rochester-based Fourth Department Appellate judge reinstates the injunction State Supreme Court Justice Donna M. Siwek lifted on August 30, until an Appellate Court panel hears arguments next week.

"We are extremely relieved that now all Indian nations within New York are protected from the state's collection efforts, while efforts continue in both state and federal courts to continue our challenge of the state's misguided taxing scheme," said Seneca Nation of Indians President Barry E. Snyder, Sr., in a statement to the media.

In response, the New York Association of Convenience Stores (NYACS) wrote a letter asking Governor Paterson to issue an executive order suspending the 58 percent tax hike on cigarettes that took effect July 1 “to level the playing field.”

"In light of the court rulings blocking the start of tax collection on Indian sales of cigarettes to non-Indians, the New York Association of Convenience Stores respectfully requests that you temporarily suspend the cigarette excise tax increase that was enacted July 1," wrote NYACS President James Calvin.

"The double-edged bargain you made with the legislature in June was to sharply increase the cigarette tax rate on July 1 but to mitigate its negative effect on tax-collecting retailers by capturing taxes on tribal sales to non-Indians starting September 1," he added. "If one side of this bargain has been placed on hold, it's only fair that the other should be put on hold as well." 

Since the cigarette tax hike jumped from $2.75 a pack to $4.25 a pack on July 1, NYACS said mom-and-pop stores in the state have lost 25-45 percent of their cigarette unit sales.