NEW YORK, NY September 28, 2009 in New York City smokers looking for cheap cigarettes may be looking a little harder this week. The Federal Court allowed at least five shops on the Poospatuck Reservation on Long Island, from the sale of duty-free cigarettes for those who are not a member of the tribe.
City Law Department said at least one smoke shop on the reservation closed because the ruling Friday's. But unconfirmed reports that several other stores are still in business.
New York City sued eight stores in the order last year. The Government maintains duty-free sales were to deceive the state and the city hundreds of millions of dollars of revenue a year.
Tribes can sell cigarettes tax-free to members of the tribe, but must collect taxes on all other sales.
New York has the nation's highest cigarette taxes. From the reservation, cigarettes are often priced at half of what they would go to the city.
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