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NEW YORK V. JERSAWIT, 263 U. S. 493 (1924)

U.S. Supreme Court

New York v. Jersawit, 263 U.S. 493 (1924)

New York v. Jersawit

No. 352

Submitted December 3, 1923

Decided January 7, 1924

263 U.S. 493


1. The tax laid on a domestic corporation in New York (Tax Law, § 209) for the privilege of exercising its franchise in the state, to

Page 263 U. S. 494

be paid annually "in advance" for the year beginning November 1st, to be computed upon the basis of the entire net income of the corporation for its fiscal, or the calendar, year preceding is an entirety, and cannot be apportioned to a fraction of the tax year which has elapsed when the corporation goes out of business. P. 263 U. S. 495.

2. The state has a claim for the entire tax when the corporation is thrown into bankruptcy after lapse of part of the tax year. Id.

3. The addition of 10% where the tax is not paid by January 1st is a penalty, and the further addition of 1% for each month the tax remains unpaid is not statutory interest, but part of the penalty, and neither can be allowed the state in a bankruptcy proceeding. Bankruptcy Act, § 57j. P. 263 U. S. 496.

290 F. 950 reversed.

Certiorari to an order of the circuit court of appeals which affirmed an order of the district court, in bankruptcy, adjudicating a claim made by the State of New York for a tax.

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