In last month’s New York Tax Insights, we reported that a federal appeals court had lifted an injunction staying enforcement of the State’s regulatory mechanism for collecting taxes on reservation sales of cigarettes to non- Indians, but that the next day a State court entered another injunction, in an action brought by the Seneca Nation of Indians claiming the regulations implementing the 2010 amended statute were adopted without proper public input. This month, the State trial court rejected the challenge, finding that the regulation was merely implementing the statute and had fulfilled all regulatory requirements, and lifted the State injunction. Seneca Nation of Indians v. State of New York, Index No. 2011- 000714 (Sup. Ct. Erie Cnty. June 8, 2011). An immediate appeal was filed, seeking a preliminary injunction, and the Appellate Division entered a temporary restraining order again staying enforcement. On June 21, the Appellate Division issued its decision, No. CA 11- 01197 (3d Dep’t June 21, 2011), denying a preliminary injunction and vacating the temporary restraining order. This cleared the way to implementation of the regulations — which the Department announced would begin immediately (TSB-M-11(4.2)M, TSB-M-11(7.2)S (N.Y.S. Dep’t of Taxation & Fin., June 21, 2011)) — unless an appeal is sought with the Court of Appeals, New York’s highest court.