The Brookhaven Town Industrial Development Agency has voted to sue a Yaphank furnishings company for allegedly failing to make more than $22,000 worth of payments in lieu of taxes.
Anthony's Closets missed the payment on May 31, IDA chief executive Lisa Mulligan said Monday in an interview, adding that company officials did not respond to a letter requesting payment sent by IDA officials two or three weeks ago.
"If it is not rectified, we will pursue legal action," she said. "We would prefer that we were able to receive the payment rather than pursue legal action."See alsoEditorial: Stop bad tax breaks
Anthony's Closets chief financial officer Frank Guarino said Monday he plans to make the overdue payment Tuesday. He said the 12-year-old company, which has $18.5 million in annual sales in New York and Florida, missed the payment in May because of the "lag time" between completing jobs and getting paid.
"I'll make sure the payment is made," Guarino said.
The company sells and installs home and office furnishings, according to its website.
Mulligan said Anthony's Closets was awarded a standard package of tax breaks about 10 years ago for the company's site on Old Dock Road. The package, which includes sales tax and mortgage tax recording exemptions, calls for the company to make lump-sum payments in lieu of taxes of nearly $23,000 every six months, she said.
She said the company had not previously missed a payment, and it was rare for companies to fail to make such payments.
"This is not normal for us at all," Mulligan said.