(COURTHOUSE NEWS) — ALBANY, N.Y.  Robert Redford has sued New York state, contesting its tax assessment of $1.6 million from the sale of his company’s part-ownership of the Sundance Channel.

Redford sued the New York State Department of Taxation and Finance on July 30 in Albany County Supreme Court.

He seeks “a declaratory ruling on a pure question of law concerning the constitutionality of imposing on plaintiff, a nonresident of the State of New York, a personal income tax on the gain derived from the sale of an ownership interest in a limited liability company.

New York claims Redford owes $1,568,470 for tax year 2005 from his sale of ownership interests in a Utah LLC.

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