New York Court of Appeals, 1978

Trust v. State Tax Commission

New York Court of Appeals · Decided February 22, 1978

43 N.Y.2d 933; 403 N.Y.S.2d 891; 374 N.E.2d 1242; 1978 N.Y. LEXIS 1831

Cases that cite this one

18 later published cases cite this decision.

Replan Development, Inc. v. Department of Housing Preservation & Development (N.Y. 1987)
US Bank N.A. v. Gordon (New York Supreme Court, Queens County 2025)
Caprio v. New York State Department of Taxation & Finance (New York Supreme Court 2012)
Citibank, N. A. v. State (N.Y. Ct. Cl. 1980)
Klebanow v. Glaser (N.J. 1979)
97 Lyman Ave., LLC v. MTGLQ Invs., L.P. (Appellate Division of the Supreme Court of New York 2024)
The Matter of Regina Metropolitan Co. v. NYS Division of Housing and Community Renewal, Joel Raden v. W7879 , James Taylor v. 72A Realty Associates , Elizabeth Reich v. Belnord Partners (N.Y. 2020)
WL, LLC v. Department of Economic Development (Appellate Division of the Supreme Court of New York 2012)
WL, LLC v. Department of Economic Development (Appellate Division of the Supreme Court of New York 2012)
JAMES SQUARE ASSOCIATES LP v. MULLEN, DENNIS (Appellate Division of the Supreme Court of New York 2011)
Moran Towing Corp. v. Urbach (Appellate Division of the Supreme Court of New York 2003)
Boynton Suites, L. L. C. v. Board of Assessment Review of Plattsburgh (Appellate Division of the Supreme Court of New York 2000)
Varrington Corp. v. City of New York Department of Finance (N.Y. 1995)
Wittenberg v. City of New York (Appellate Division of the Supreme Court of New York 1988)
Wittenberg v. City of New York (New York Supreme Court 1987)
Fiduciary Trust Co. v. State Tax Commission (Appellate Division of the Supreme Court of New York 1986)
Bank of New York v. Tully (Appellate Division of the Supreme Court of New York 1981)
New England Petroleum Corp. v. State (New York Supreme Court 1981)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion of the Court

OPINION OF THE COURT

Per Curiam.

Judgment affirmed, with costs. Facile categorization of taxable transactions as "voluntary” or "involuntary” does not progress the analysis. Even property taxes and income taxes involve voluntary acts—the decision to own property or to earn, rather than to forego, income.

Retroactivity provisions in tax statutes, if for a short period, are generally valid, but the constitutional analysis must involve a balancing of equities. Arbitrariness in a tax statute, it has been held, deprives taxpayers of property without due process of law (People ex rel. Best & Co. v Graves, 265 NY *935431, 436). Although a close question is presented, the apparent absence of a persuasive reason for retroactivity, with its potentially harsh effects, offends constitutional limits, especially when the tax imposed is one which might exert significant influence on personal or business transactions (cf. Welch v Henry, 305 US 134, 147, and cases cited, reh den 305 US 675; People ex rel. Best & Co. v Graves, 265 NY 431, 436, supra). Also somewhat influential, but hardly determinative, is the lapse of an entire legislative session before the apparent "error” was corrected (cf. Welch v Henry, 305 US 134, 150-151, supra).

Reference (inaccurately) to the new, higher, tax rate in the instruction booklet for the 1972 fiduciary income tax return does not help the Tax Commission. At best, the instructions provided potential taxpayers with notice to look to the statutes, which imposed no increase. The legislative error, if that it was, could be corrected only by further legislation, not by self-serving publication in an instruction booklet.

Chief Judge Breitel and Judges Jasen, Gabrielli, Jones, Wachtler, Fuchsberg and Cooke concur in Per Curiam opinion.

Judgment affirmed.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.