People ex rel. Sheraton Buildings, Inc. v. Tax Commission

Relator is a Massachusetts corporation doing some business in New York. Its only business in New York at the time was owning and operating a hotel in Buffalo. It also owned an office building in Boston which it sold during the year in question, realizing a long-term capital gain of $2,233,139.97. An excise tax (very similar to the New York State franchise tax) on the full amount was paid in Massachusetts, with no attempt at apportionment, and the full amount was reported in its Federal income tax return. Relator did not include this long-term capital gain in its New York franchise tax return,…