Interborough Rapid Transit Co. v. Sohmer, 237 U.S. 276 (1915)

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Interborough Rapid Transit Co. v. Sohmer


No. 129


Argued January 18, 19, 1915
Decided April 12, 1915
237 U.S. 276

ERROR TO THE SUPREME COURT
OF THE STATE OF NEW YORK

Syllabus

An exemption from taxation of a person constructing and operating a railroad in respect to his or their interest therein under said contract and in respect to the rolling stock and other equipment of the railroad does not extend to a tax or the privilege to operate as a corporation in case the parties decide to operate the road in a corporate form.

The Court of Appeals of New York, having held that the right to be a corporation was not an interest under the New York subway contract involved in this case, and that the exemption from taxation contained in that contract did not extend to such privilege, this Court accepts that construction although it is not conclusive upon it.

207 N.Y. 270 affirmed.

The facts, which involve the validity of certain assessments and provisions of the tax statutes of the State of New York under the contract clause of the federal Constitution, are stated in the opinion.