New York Rapid Transit Corporation, Respondent v. City of New York, Appellant

Summary

The New York Court of Appeals reversed the Appellate Division's denial of the transit company's motion to dismiss, holding that the city’s exclusive refund remedy does not bar a common law action when the tax is challenged as unconstitutional, and that the 3% gross receipts tax on transit utilities is a valid classification that does not violate equal protection, the contract clause, or the due‑process taking clause.