SCALLOP CORP. v. TULLY

No. 81-CV-744.

546 F.Supp. 745 (1982)

SCALLOP CORPORATION, Plaintiff, v. James H. TULLY, Jr., Thomas H. Lynch, and Francis Koenig, constituting the New York State Tax Commission; Robert Abrams, Attorney General of the State of New York; and James L. LaRoca, Commissioner of the New York State Energy Office, Defendants.

United States District Court, N. D. New York.

September 3, 1982.


Attorney(s) appearing for the Case

Cravath, Swaine & Moore, New York City, Kernan & Kernan, P.C., Utica, N.Y., for plaintiff; Paul M. Dodyk, Henry B. Gutman, Nancy F. Preiss, New York City, John Hunt, Utica, N.Y., of counsel.

Robert Abrams, Atty. Gen., State of N.Y., Albany, N.Y., for defendants; Shirley Adelson Siegel, Sol. Gen., Albany, N.Y., of counsel.

Paul Wiess, Rifkind Wharton & Garrison, New York City, for defendants Tully, Lunch and Koenig; Edward N. Costikyan, Simon H. Rifkind, Richard D. Friedman, Michael C. Lasky, New York City, of counsel.


MEMORANDUM-DECISION AND ORDER

McCURN, District Judge.

In June 1980, New York State enacted a two percent tax on the gross receipts of oil companies attributable to revenues derived from their in-state activities. New York Tax Law § 182 (McKinney Supp. 1981). In an effort to insure that the tax would be borne by the oil companies rather than by consumers, the New York Legislature included a so-called "anti-passthrough" provision which prohibited the...

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