TAXATION - COMMERCE CLAUSE - TAX BY SELLER STATE ON CONTRACT TO SELL INTERSTATE

Appellants were partners in the securities business with offices in New York City. In the course of their business they agreed to sell shares of stock to two firms, one engaged in business in Philadelphia, the other in Washington, D. C. The securities were mailed to banks in Philadelphia and Washington for delivery upon payment of sight drafts attached. Under the tax law of the state of New York, a tax was levied on the sale of this stock. Appellants sought a refund of the tax on the ground that the statute imposed an unconstitutional burden on interstate commerce.

Held, the statute is valid and the tax is not an unconstitutional burden on interstate commerce. Three judges dissented. O'Kane v. State, 283 N. Y. 439, 28 N. E. (2d) 905 (1940).