Herzog Brothers Trucking v. State Tax Commission Et Al‪.‬

[72 N.Y.2d 720 Page 722] Opinion OF THE COURT This appeal questions whether the State may require the corporate plaintiff, a wholesale distributor
of motor fuel to Seneca Indian retailers on the Allegany and Cattaraugus Reservations, to prepay taxes on motor fuel delivered
to the retailers for resale to Indian and non-Indian consumers. We first considered the question in May 1987 on appeal by
plaintiffs (69 N.Y.2d 536). At that time, we held that the Federal Indian trader laws preempted State regulation of the corporate
plaintiff and that the Appellate Division erred, therefore, in denying its application for an order preliminarily enjoining
defendant from proceeding against it. The State Tax Commission then petitioned the Supreme Court of the United States for
a writ of certiorari to review our decision. The Supreme Court granted the writ, vacated the judgment and remanded the case
to us "for further consideration in light of proposed regulations" published by this State's Commissioner of Taxation and
Finance effective November 30, 1988 (20 NYCRR 414.6, 414.7) and applicable to sales made after January 1, 1989 (see, State
Tax Commn. v Herzog Bros. Trucking, U.S. , [72 N.Y.2d 720 Page 723108]