New York American Water again sues over 'illegal' Nassau County taxes
New York American Water has again filed suit against Nassau County, Oyster Bay Town and the North Shore School District, arguing that "illegal" miscalculations led it to overpay property taxes. Credit: Danielle Silverman
New York American Water has filed another lawsuit against Nassau County, Oyster Bay Town and the North Shore School District, arguing that “illegal” miscalculations led it to overpay property taxes for a half decade.
The suit, filed months before NYAW expects to complete its sale to a Canadian utility company, mirrors suits filed by the company in 2018 and 2019 that took issue with how taxes were calculated in its Sea Cliff service area. The latest suit adds claims from the company's 2019 tax bills.
The company is seeking unspecified refunds for the years it alleges it overpaid taxes, starting in the 2015-16 tax year through 2019-20.
New York American Water spokeswoman Lee Mueller said the company "initiated this litigation to protect the financial interest of its customers and continues to seek an equitable resolution." The company declined to say how much in refunds it seeks from the taxing districts.
The suit claims the taxing districts didn’t properly account for the demolition of a Glenwood Landing power plant in calculating taxes.
"This mistake has been carried over each year since that time," Mueller said, and the company is "simply preserving its right to refunds for each year that the illegally calculated tax rates are used to impose taxes in these jurisdictions."
The company said the amount of the refunds is "unknown at this time."
Representatives for Nassau County, Oyster Bay Town and the North Shore School District didn’t immediately respond to requests for comment.
NYAW has long argued that disproportionately high taxes are the bulk of the reason for spiking water rates for its roughly 120,000 Nassau customers. The company said it has supported proposed legislation to give investor-owned utilities the same tax-free status as municipal water districts.
NYAW's four-year, state-approved rate hike in 2016 generated protests at public hearings. Much of the increase was tied to a “conservation” rate that rises during the summer irrigation season. That took many customers by surprise.
The suit filed last month alleges the taxing jurisdictions charged special levies based on “illegal, erroneous and unconstitutional” calculations that “failed to reflect the physical demolition of the Glenwood Landing power plant.”
New York American Water said it paid “illegal and erroneous” tax rates resulting from the incorrect calculations “under protest” and “under duress.”
The suit asks for certain sections of Nassau County tax law to be declared unconstitutional, and seeks injunctions barring the county from relying on the erroneous calculations and equal protection under the law.
With Ted Phillips
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
Updated 34 minutes ago Suozzi visits ICE 'hold rooms' ... U.S. cuts child vaccines ... Coram apartment fire ... Out East: Custer Institute and Observatory
Updated 34 minutes ago Suozzi visits ICE 'hold rooms' ... U.S. cuts child vaccines ... Coram apartment fire ... Out East: Custer Institute and Observatory
