W. H. Morton & Co. v. New York State Tax Commission

Main and Mikoll, JJ., dissent and vote to annul in the following memorandum by Mikoll, J. Mikoll, J. (dissenting).

We respectfully dissent. The determination of the State Tax Commission on this record is arbitrary and unreasonable. The franchise tax imposed does not bear a reasonable relationship to the privilege granted. The franchise tax is a tax imposed on every domestic corporation, with some exceptions, “for the privilege of exercising its corporate franchise, that is to say, for the mere possession of the privilege” (58 NY Jur, Taxation, § 513, p 682; see Brady v State Tax Comm., 176…