Holmes Electric Protective Co. v. City of New York

Heretofore and prior to the commencement of this action plaintiff instituted an article 78 proceeding to review the action of the comptroller of the City of New York in imposing on plaintiff a utility tax for the year 1935. Plaintiff was successful in that proceeding, the Appellate Division holding that plaintiff was not engaged in the sale of electric, telephone or telegraphic service within the meaning of the then existing tax laws (Matter of Holmes Elec. Protective Co. v. McGoldrick, 262 App. Div. 514, 517, affd. 288 N. Y. 635).

But subsequent to 1935 and in 1938 the local law setting up…