Monarch Life Insurance v. State Tax Commission

New York Court of Appeals

Monarch Life Insurance v. State Tax Commission

299 N.E.2d 684, 32 N.Y.2d 850, 346 N.Y.S.2d 272, 1973 N.Y. LEXIS 1253

CourtNew York Court of Appeals

DecidedMay 30, 1973

StatusPublished

Cited by2 cases

This text of 299 N.E.2d 684 (Monarch Life Insurance v. State Tax Commission) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Monarch Life Insurance v. State Tax Commission, 299 N.E.2d 684, 32 N.Y.2d 850, 346 N.Y.S.2d 272, 1973 N.Y. LEXIS 1253 (N.Y. 1973).

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Opinion

Memorandum.

The order of the Appellate Division should be affirmed, with costs. The recording of change, through New York transfer agents, of ownership of investment shares of stock held in other corporations, following the merger of two Massachusetts corporations, was subject to the stock transfer tax (Tax Law, § 270, subd. 1; 20 NYCRR 440.1 [b]). True, it was held in Electric Bond & Share Co. v. State of New York (249 App. Div. 371, 373, affd. 274 N. Y. 625) that a similar change in record title was not taxable because it occurred ‘ ‘ by operation of law”. Thereafter, however, section 270-c of the Tax Law was enacted. That statute provides that a transfer is not exempt from tax because effected by operation of law. Moreover, the change of ownership was not merely the result of ‘ ‘ operation of law ’ ’, since the merger was effected by the voluntary action of the participating corporations and shareholders (see 1930 Opns. Atty. Gen. 166, 167; Niagara Hudson Power Corp. v. Hoey, 117 F. 2d 414, 416 [CCA2], cert. den. 313 U. S. 571; Koppers Coal & Transp. Co. v. United States, 107 F. 2d 706, 708 [CCA3]).

Chief Judge Fuld and Judges Burke, Breitel, Jasen, Gabrielli, Jones and Wachtler concur.

Order affirmed, with costs, in a memorandum,

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Memorandum.

The order of the Appellate Division should be affirmed, with costs. The recording of change, through New York transfer agents, of ownership of investment shares of stock held in other corporations, following the merger of two Massachusetts corporations, was subject to the stock transfer tax (Tax Law, § 270, subd. 1; 20 NYCRR 440.1 [b]). True, it was held in Electric Bond & Share Co. v. State of New York (249 App. Div. 371, 373, affd. 274 N. Y. 625) that a similar change in record title was not taxable because it occurred ‘ ‘ by operation of law”. Thereafter, however, section 270-c of the Tax Law was enacted. That statute provides that a transfer is not exempt from tax because effected by operation of law. Moreover, the change of ownership was not merely the result of ‘ ‘ operation of law ’ ’, since the merger was effected by the voluntary action of the participating corporations and shareholders (see 1930 Opns. Atty. Gen. 166, 167; Niagara Hudson Power Corp. v. Hoey, 117 F. 2d 414, 416 [CCA2], cert. den. 313 U. S. 571; Koppers Coal & Transp. Co. v. United States, 107 F. 2d 706, 708 [CCA3]).

Chief Judge Fuld and Judges Burke, Breitel, Jasen, Gabrielli, Jones and Wachtler concur.

Order affirmed, with costs, in a memorandum,

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299 N.E.2d 684, 32 N.Y.2d 850, 346 N.Y.S.2d 272, 1973 N.Y. LEXIS 1253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monarch-life-insurance-v-state-tax-commission-ny-1973.

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