NY High Court Declines Challenge to Pay-First Sales Tax Rule

New York’s highest court declined on Tuesday to take up a payment processor’s challenge to a state rule requiring it to pay $3.86 million in sales taxes before contesting them.

The New York Court of Appeals’ denial of Metro Enterprises Corp.'s motion for leave to appeal means the prepayment-in-full rule, which requires businesses to pay sales taxes prior to going to court over them, remains intact.

• The rule means a corporation facing difficult financial times that gets a “hefty sales tax assessment” won’t be able to challenge the tax bill in a court, Metro Enterprises said its motion for leave ...