The People of the State of New York Ex Rel. Alpha Portland Cement Company, Respondent v. Walter H. Knapp…

Summary

The New York Court of Appeals held that Article 9A of the Tax Law is unconstitutional to the extent it taxes foreign corporations on income from bonds and dividends while excluding the underlying assets from the apportionment formula, severed the invalid provisions, permitted the relator to subtract bond interest from income and to include the value of its stock holdings in the asset pool, reversed the Appellate Division’s complete reversal of the tax, and remanded for a revised assessment.