News Analysis: New York High Court Upholds Retroactive Taxation of Nonresident Stock Sales - McDermott Will & Emery

News Analysis: New York High Court Upholds Retroactive Taxation of Nonresident Stock Sales

Overview


Alysse McLoughlin said it was not surprising that New York’s highest court foreclosed nonresident taxpayers’ ability to challenge taxes imposed on intangible property, given that the court previously made the same determination in regard to non-income taxes. However, she said, this was the first time that the court’s analysis has been extended to clarify that a recent New York constitutional prohibition does not apply to income tax. “This result is not surprising due to the limiting language in the constitution and the relevant legislative history,” she added.