Mutual Life Insurance v. New York State Tax Commission

Chief Judge Fuld.

Section 187 of the Tax Law imposes a tax on “ all gross direct premiums ” received by domestic life insurance corporations “ for the privilege of exercising corporate franchises or for carrying on business * * * within this state ” (subd. 2). The question posed by this appeal, here by our leave, is whether the costs of life and health insurance benefits for the employees of such a life insurance corporation, on a nonprofit and noncommercial basis, are taxable as premiums received within the sense of that statute.

Contending that they are not, the petitioner-appellant, Mutual…