A federal judge''s has been declared a major victory for the Seneca Nation of Indians and other tribes in the state that have built a multimillion-dollar business selling tax-free cigarettes by mail order, telephone and the Internet.
In a 72-page decision, U.S. District Judge Loretta A. Preska ruled in Manhattan that the state law making the shipment or transport cigarettes sold via the Internet, mail order or telephone a crime is "unconstitutional . . . and void."
Joseph F. Crangle, attorney for the Seneca Sovereign Partnership, said the ruling is significant on the issue of Indian sovereignty.
"Indian reservations located within New York State are not part of the state, and therefore, direct sales from such reservations are not "in state'' sales," Crangle quoted from the ruling.
Joseph Conway, Gov. George E. Pataki''s press secretary, called the decision "disappointing."
"The court struck down a law intended to save lives by keeping children from smoking." he said. "We plan to work with our federal delegation to try and get this much-needed protection in place."
The law, approved last August by the State Legislature and signed by Pataki, was to have taken effect Jan. 1. The law would have penalized such companies as United Parcel Service and Federal Express for delivering reservation cigarettes not bearing state tax stamps.