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Article: Top court rejects Bankers Trust appeal of N.Y. tax on federal securities income. (US Supreme Court; New York City franchise tax) (Brief Article)
- Article from:
- American Banker
- Article date:
- October 6, 1992
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON - The Supreme Court has let stand a ruling against Bankers Trust New York Corp. in its challenge of a New York City franchise tax policy.
The lower-court ruling, which the Supreme Court refused to consider, said New York may take into account income from federal securities in calculating franchise taxes on financial companies.
Federal law generally exempts interest on federal securities from state or municipal taxes. An exception to that rule allows cities and states to impose franchise taxes that take into consideration corporations' earnings from federal securities.
Bankers Trust's challenge involved about $4 million it paid in the ...