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Attorney General Eliot L. Spitzer lobbed a legal bombshell yesterday in New York State’s tax war with its neighbors over the city’s commuter tax. Mr Spitzer announced that New York will sue Connecticut to obtain for New York residents the same $50 rebate from the Connecticut sales tax that all of Connecticut residents will receive next fall. Connecticut had led the charge in winning a court ruling that New York’s repeal of the city’s commuter tax must apply to out-of-state residents as well as New Yorkers. In return, Mr Spitzer wants New Yorkers to qualify for the Connecticut rebate. Connecticut officials are unsure how the state would pay such claims.

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