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International News Title: Cayuga County judge sides with Cayuga Indians; orders DA to dismiss indictments, return smokes For the second time this week Cayuga County lost a major court decision in its cigarette tax dispute with the Cayuga Indian Nation. In county court today, Judge Mark H. Fandrich dismissed indictments against the Cayugas and ordered county District Attorney Jon Budelmann to return to the Cayugas some 7,600 cartons of cigarettes and business records seized in a December 2008 tax raid from the nation’s LakeSide Trading store in Union Springs. Fandrich’s ruling follows a related decision by the state Court of Appeals in May. “It’s not up to me to determine if the Court of Appeals is wrong … I don’t have that authority,’’ Fandrich said. On Monday, the U.S. Supreme Court refused to hear the county’s request to overturn the ruling by the state’s highest court. The three rulings effectively end the county’s attempt to stop the Cayugas from selling tax-free cigarettes and from prosecuting them on tax-evasion charges. Budelmann said he was disappointed in Fandrich’s ruling and was critical of the recent court decisions that went against the county. “All the courts are saying, ‘We’re not going to follow the law, we’re going to make up new laws,’’’ Budelmann said after the hearing. In a companion case, the Seneca County district attorney was ordered in June to dismiss indictments against the Cayugas and to return more than 12,500 cartons of cigarettes and business records confiscated in a 2008 tax raid at the nation’s Seneca Falls store. The county complied with the judicial order in July. Shortly after Fandrich ruled, Lee Alcott, a Syracuse lawyer representing the Cayugas, said nation leaders would be “pleased and relieved by the court’s decision.’’ In his argument before Fandrich, Alcott said the state Court of Appeals ruling made it clear that the Cayugas cannot be prosecuted for possessing or selling tax-free cigarettes to non-Indians. “The point is, judge, it’s over,’’ Alcott said. Budelmann, in his argument, said he wanted a new opportunity to try to prove that the Cayugas are selling cigarettes wholesale at their store, an allegation denied by Alcott. The nation sells one million packs of cigarettes a week, Budelmann said. “He’s saying there’s no wholesaling going on, I’m saying there is,’’ Budelmann said. However, Fandrich agreed with Alcott that the prosecutor waited too long to try to change the focus of his prosecution in the case. Until July Budelmann said he was trying to bring charges against the Cayugas for possessing unstamped cigarettes that are sold to non-Indians. Fandrich said it is up to the state to implement a system for collecting taxes on cigarette sales at the nation’s stores. Until a system is enacted the Cayugas will continue to hold an unfair competitive edge over neighboring businesses that have to remit the tax to the state and charge higher prices for their cigarettes, Fandrich said. After Fandrich ruled, Budelmann tried one more time to persuade the judge to let him try to prosecute the Cayugas on the new wholesale allegations. “I understand your argument but my decision stands,’’ Fandrich said. You can reach Scott Rapp at sapp@syracuse.com or 289-4839
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