July 30, 2010, 3:15 PM
Judge upholds ban on mailing of cigarettes
A judge today upheld the federal government's right to ban the mailing of cigarettes by Seneca Nation tobacco businesses, but rejected for the time being the collection of taxes on those cigarettes.
The ruling by U.S. District Judge Richard J. Arcara upholds the crux of a new federal law that Seneca business owners say will cripple their mail-order operations.
In short, the judge banned the sale of tobacco products through the mail but allowed for other forms of interstate sales of tax-free cigarettes.
The Prevent All Cigarette Trafficking Act, or PACT Act, is viewed by both critics and supporters as sweeping legislation with billions of dollars in tax revenue and thousands of jobs at stake.
Arcara, in his decision, rejected a request by Seneca businesses for a preliminary injunction that would have prevented the government from enforcing a law that applies to all businesses that mail tobacco products.
The judge, however, did issue an injunction against one aspect of the law -- the right of federal, state and local governments to collect taxes on other forms of interstate sales of tobacco products.
Earlier this month, Arcara issued a temporary restraining order that, in essence, gave the businesses a reprieve from the laws enforcement.
The new law prohibits the U.S. Postal Service from delivering commercial cigarette shipments, and requires companies that engage in interstate cigarette sales to pay all federal, state and local taxes where the buyer lives.
The law also requires cigarette businesses to register with the state where they are headquartered and make periodic reports to state tax departments. It also requires they check the age and identification of customers who buy tobacco products.
In defending the law, government lawyers said it was enacted to prevent underage smokers from obtaining cigarettes through the mail and to end a practice that cost governments billions of dollars a year in lost taxes.
The government claims the federal measure was carefully drafted to adhere to the U.S. Constitution and to avoid infringing on the sovereign rights of Native Americans.
The bill, signed into law in March by President Obama, is backed by a coalition that ranges from anti-smoking groups to convenience store owners to large tobacco manufacturers.
The other side, most notably Seneca businesses, has portrayed the law as discriminatory against Indians, and as a windfall for non-Indian tobacco businesses.
The Seneca Fair Trade Association, which represents 140 businesses, has argued that the law is unconstitutional and, if enacted, would force hundreds of Seneca-owned businesses to close their doors and eliminate 3,000 jobs."
Judge upholds ban on mailing of cigarettes
A judge today upheld the federal government's right to ban the mailing of cigarettes by Seneca Nation tobacco businesses, but rejected for the time being the collection of taxes on those cigarettes.
The ruling by U.S. District Judge Richard J. Arcara upholds the crux of a new federal law that Seneca business owners say will cripple their mail-order operations.
In short, the judge banned the sale of tobacco products through the mail but allowed for other forms of interstate sales of tax-free cigarettes.
The Prevent All Cigarette Trafficking Act, or PACT Act, is viewed by both critics and supporters as sweeping legislation with billions of dollars in tax revenue and thousands of jobs at stake.
Arcara, in his decision, rejected a request by Seneca businesses for a preliminary injunction that would have prevented the government from enforcing a law that applies to all businesses that mail tobacco products.
The judge, however, did issue an injunction against one aspect of the law -- the right of federal, state and local governments to collect taxes on other forms of interstate sales of tobacco products.
Earlier this month, Arcara issued a temporary restraining order that, in essence, gave the businesses a reprieve from the laws enforcement.
The new law prohibits the U.S. Postal Service from delivering commercial cigarette shipments, and requires companies that engage in interstate cigarette sales to pay all federal, state and local taxes where the buyer lives.
The law also requires cigarette businesses to register with the state where they are headquartered and make periodic reports to state tax departments. It also requires they check the age and identification of customers who buy tobacco products.
In defending the law, government lawyers said it was enacted to prevent underage smokers from obtaining cigarettes through the mail and to end a practice that cost governments billions of dollars a year in lost taxes.
The government claims the federal measure was carefully drafted to adhere to the U.S. Constitution and to avoid infringing on the sovereign rights of Native Americans.
The bill, signed into law in March by President Obama, is backed by a coalition that ranges from anti-smoking groups to convenience store owners to large tobacco manufacturers.
The other side, most notably Seneca businesses, has portrayed the law as discriminatory against Indians, and as a windfall for non-Indian tobacco businesses.
The Seneca Fair Trade Association, which represents 140 businesses, has argued that the law is unconstitutional and, if enacted, would force hundreds of Seneca-owned businesses to close their doors and eliminate 3,000 jobs."
I couldn't find any mention of the other issues he was reported to be considering.
Maybe there will be more updates forthcoming, but I doubt it.
"..the judge banned the sale of tobacco products through the mail but allowed for
other forms of interstate sales of tax-free cigarettes"??
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