A federal judge Friday will hear arguments on why the Seneca Nation of Indians should not collect taxes on cigarettes sold on tribal lands to non Indians.
The nation is seeking an injunction to delay the collection, scheduled by the state to begin Sept. 1.
The state, which has been working on various plans for years to collect the taxes, adopted emergency regulations in June, describing how the plan will be implemented. Tribes, which are exempt from paying state taxes, will receive a specified amount of cigarettes quarterly for their own members and are expected to pay state taxes to wholesalers on any cigarettes sold to non Indians.
The state expects to collect $150 million this fiscal year by taxing sales to non-Indian customers.
Arguments are scheduled for 2:30 p.m. Friday before U.S. District Court Judge Richard J. Arcara of the Western District.