Supreme Court of the United States

Boston Stock Exchange v. State Tax Commission

January 12, 1977429 U.S. 318

Summary

The Court held that New York's amended securities-transfer tax violated the Commerce Clause because it imposed a substantially heavier burden on out-of-state sales than on comparable in-state sales, thereby favoring New York exchanges. The Court rejected the characterization of the amendment as compensatory because the prior tax was neutral and the amendment altered tax consequences based on the location of the sale. The Court also held that the exchanges had standing and that the state courts had subject-matter jurisdiction. No separate opinions were issued.

Holding

  • Standing and subject-matter jurisdiction. The state courts had jurisdiction to adjudicate the federal constitutional claims, and the exchanges had standing because they alleged that the challenged tax diverted taxable securities transactions from their facilities and injured their members.
  • Constitutionality of the amended securities-transfer tax. The amended tax violated the Commerce Clause because it imposed a greater tax burden on out-of-state sales than on comparable in-state sales and provided a direct commercial advantage to New York exchanges.

Docket 75-1019

Cited authorities

  • R. 440.2
  • N.Y. Tax Law § 270.2
  • 89 Stat. 100
  • N.Y. Tax Law § 270.5
  • N.Y. Tax Law § 270
  • N.Y. Tax Law § 270

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