Tully v. Griffin, Inc., 429 U.S. 68 (1976)

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF VERMONT

Syllabus

The Tax Injunction Act, 28 U.S.C. $ 1341, which prohibits federal district courts from enjoining the assessment, levy, or collection of state taxes where "a plain, speedy and efficient remedy may be had in the courts of such State," held to bar appellee Vermont furniture store’s suit in Federal District Court for injunctive relief against allegedly unconstitutional assessment of New York sales taxes on appellee’s sales to New York customers, since New York provides a "plain, speedy and efficient" means for redress of appellee’s constitutional claims while preserving the right to challenge the amount of taxes due. Despite New York statutes providing that judicial review of an administrative determination shall be a taxpayer’s only remedy, other procedures, including a declaratory judgment action, may be used in New York courts when the claim is that the tax is unconstitutional, Ammex Warehouse Co. v. Gallman, 414 U.S. 802. Moreover, appellee need not accept as binding the amount of the assessment as a price of challenging the constitutionality of the tax, but can obtain a preliminary injunction in state court that will toll the running of the 90-day period within which appellee may challenge such amount at an administrative hearing. Pp. 73-77.

404 F.Supp. 738, vacated and remanded.

STEWART, J., delivered the opinion for a unanimous Court.