People Ex Rel. Jamaica Water Supply Co. v. State Board of Tax Commissioners

One of the principal questions discussed in the opinion in this case originally was whether where the net earnings rule is adopted in valuing a special franchise the taxes paid by the relator should be deducted from the gross earnings in order to determine the net earnings of the taxpayer. The Appellate Division had held that there should be deducted from the earnings “ all taxes including approximately the amount of the special franchise tax to he assessed.” We expressed our dissent from this view, saying that the deduction to which the relator is thus entitled on account of taxes, however,…