Lawrence-Smith School, Inc. v. City of New York

Plaintiff is an educational corporation which conducts an elementary and secondary school. It brings this action to cancel as a cloud on title real property taxes for the years 1935, 1936 and 1937, claiming that it is entitled to exemption under subdivision 6 of section 4 of the Tax Law. The defendant, The City of New York, disputes the right to exemption and urges that though in form non-profit and non-stock, plaintiff in reality is a profit-making corporation within the meaning of the Tax Law.

A brief history of The Lawrence-Smith School is essential to a proper consideration of the case.…