Hunt v. State Tax Commission

OPINION OF THE COURT

Simons, J.

The issue on these appeals is whether the Federal tax benefit rule applies to exclude State and local income taxes when computing New York items of tax preference subject to New York minimum income tax under Tax Law §§ 622 and 623 for *15the tax years 1976 and 1977. We hold that it does and reverse the order of the Appellate Division in each proceeding.

New York State imposes a “minimum income tax” on the New York “minimum taxable income” of every individual, estate or trust (Tax Law § 601-A).1 Its purpose is to limit the ability of high income taxpayers to avoid any…