The filing accused the recently passed NY law of being "enacted to retaliate against the President because of his policy positions, his political beliefs, and his protected speech, including the positions he took during the 2016 campaign".
The suit asks the court to provide a declaratory judgment that the committee "lacks a legitimate legislative goal for obtaining the President's state tax information".
New York Attorney General Letitia James said in a statement, "President Trump has spent his career hiding behind lawsuits, but, as New York's chief law enforcement officer, I can assure him that no one is above the law - not even the President of the United States".
"Once it became clear that Treasury would not divulge the President's federal tax returns, NY passed a law allowing the Committee to get his state returns", the court filing read, describing the new law that directs the commissioner to grant the committee's request for Trump's state tax returns.
The attorneys said the restraining order should remain in place until Neal notifies Trump and the court that he intends to seek the president's state returns from NY and the court rules on its legality.
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"We have filed a lawsuit today in our ongoing efforts to end presidential harassment". NY officials are also named in the suit. Trump also sued New York Atty.
On Tuesday, lawyers for Mr Trump sued the committee and officials in NY, claiming the president's constitutional rights were being breached.
Trump hasn't disclosed any tax information since announcing his candidacy in mid-2015.
The administration and the Trump's business have repeatedly tried to stall Democrats' investigations by filing lawsuits and not cooperating.
Trump's new legal action intervenes in that suit, according to the complaint filed in U.S. District Court in Washington, D.C. Treasury Secretary Steven Mnuchin rejected a subpoena by the House Committee on Ways and Means. After several follow-up letters, the Treasury Department formally denied the request and Neal issued subpoenas to the IRS and Treasury Department on May 10.
The lawsuit comes three weeks after the committee sued to force the U.S. Treasury Department and Internal Revenue Service to hand over Trump's tax records from the last six years.
The lawsuit piles onto several other court fights involving other committees and members of Congress seeking Trump's financial records.