New York Leasing Company’s $2.8 Million Tax Claim Stymies Court

A vehicle fleet management company’s effort to claim an overpayment of $2.8 million in sales taxes after it refunded customers at the end of their leases potentially could result in a settlement after an intermediate New York appeals court appeared to struggle with the issue Wednesday.

At the conclusion of oral arguments, Presiding Justice Elizabeth A. Garry said the case was “a really close call” and encouraged Gelco Corp. and the state to resolve their dispute out of court.

Michael J. Bowen of Ackerman LLP, who represented Gelco, argued that the company should be allowed to adjust its sales tax ...