County owes Verizon refund

New York State's highest court has declined to hear an appeal from Nassau County, meaning the county rather than North Hempstead Town owes about $1.2 million in tax refunds to Verizon.

Last week's decision by the Court of Appeals ends a dozen years of litigation over garbage taxes that the telephone company paid on its property -- telephone cables, poles and other equipment -- in North Hempstead.

North Hempstead Supervisor Jon Kaiman said Tuesday he was pleased that the town had prevailed. But, he added, "the notion that Verizon doesn't have to pay property taxes is incredibly unfair. What we should really be doing is working with the county to change the law" at the state level.

County attorney John Ciampoli said in a statement: "We are disappointed by the Court of Appeals denial to address the certain issues raised in this litigation. The county attorney's office is currently litigating these issues before the Supreme Court in a similar lawsuit; therefore, it would not be proper for our office to comment at this time. We intend to vigorously defend the county's position."

A Verizon spokesman declined to comment.

In 1998, Verizon, then known as New York Telephone Co., sued North Hempstead and its special garbage districts, arguing that cables and poles did not generate garbage and did not benefit from the trash collection service.

In 2003, the Supreme Court ruled in favor of Verizon, directing that Verizon be refunded for the period from 1992 to 2002, according to court documents.

Two years later, North Hempstead filed an action claiming that Nassau County should pay the refunds. "The county placed these properties on the tax rolls," said Maureen Liccione, a Garden City attorney who represents the town.

The Supreme Court ruled in favor of the county. But in August, the Appellate Division, Second Department, overturned that decision, siding with North Hempstead. The Court of Appeals last week declined to hear the county's appeal.

Along with North Hempstead, Verizon had sued Hempstead and Oyster Bay towns over the garbage tax issue. In the Oyster Bay case, the state Court of Appeals in 2005 ordered the town to pay $3.4 million.