De Buono v. NYSA-ILA Medical and Clinical Services Fund (1996)
- Docket
- 95-1594
- Decided
- 1996-01-01
Summary
Question: Does the Employee Retirement Income Security Act preclude New York's Health Facility Assessment from imposing a gross-receipts tax on the income of medical centers operated by ERISA funds? Conclusion: No. In a 7-2 decision, authored by Justice John Paul Stevens, the Court ruled that the Employee Retirement Income Security Act does not preclude New York from imposing a gross receipts tax on ERISA funded medical centers. Justice Stevens wrote, "Any state tax, or other law, that increases the cost of providing benefits to covered employees" will affect the benefit plan, "but that simply cannot mean that every state law with such an effect is pre-empted.