A ruling Monday by a federal appeals court prompted state officials to begin planning to collect taxes on cigarette sales from Indians to non-Indian customers.
The effort announced by Gov. Andrew M. Cuomo sets up a potential confrontation between the state and Native Americans who call the taxation an assault on their sovereignty and economic well-being.
The state Tax Department was expected to post tax-collection guidelines on its website Monday night -- the first legal step for what Cuomo administration officials said will be an immediate requirement that wholesalers charge the state's $4.35-per-pack excise tax on every pack of cigarettes sold to Indian retailers.
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