The Oneida’s tobacco factory is a major economic driver here in the rural Central New York town of Onondaga, where the cigarettes help finance scholarships, housing and a health clinic. But for state officials, the tribe’s cigarette business presents a dilemma. The state has long tried, without success, to collect taxes on the name-brand cigarettes that the Oneida and other Indian nations sell outside their borders. The profits from the sales are supposed to be rechanneled to the reservation, where they would help fund tribal programs.

The Indian cigarettes near me of national-brand cigarettes from Indian reservations is a nationwide problem, but New York’s tobacco black market is among the largest in the country, robbing the state and city of revenue. As a result, the state’s governor and his predecessors have opted for a policy of “forbearance” with regard to cigarette taxes on tribal land.

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Last month, however, the state won a court victory that allowed it to demand tax payments from wholesalers that supply cigarettes to Indian retailers for resale. Since then, the national brands that had stocked the shelves of Indian-owned convenience stores have disappeared, replaced by cigarettes the state says are exempt from tax.

The big tobacco companies have shown little interest in stopping the smuggling, which is profitable for them. In 2007, cigarette sales to Indian smoke shops accounted for 25 percent of Lorillard, Philip Morris and R.J. Reynolds’ combined totals in the state, according to a three-month investigation by The New York Times and ICIJ.

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