State high court hears Nassau tax case

ALBANY -- Judges on New York's highest court peppered attorneys for Nassau County and dozens of school districts and municipalities Tuesday with questions about who is responsible for local property-tax refunds -- a fight that will cost the loser $80 million per year.

The case centers on Nassau's property tax-assessment system. Unlike almost every other county in New York, Nassau was granted power decades ago to oversee assessments instead of towns and other municipal entities. Republican County Executive Edward Mangano wants to shift the burden for refunds to the localities.

Allowing that would "bring Nassau in line with 60 other counties of this state," Ronald J. Rosenberg, attorney for the county, told the court. Said Chief Judge Jonathan Lippman: "I understand why the county would want to do that. But the question is, can the county do that?"

Some 40 school districts, led by the Baldwin Union Free School District, have filed suit against Nassau, joined by the Town of North Hempstead and some individual taxpayers. They claim Nassau exceeded its authority and would have to get the State Legislature to pass a law to overturn the county's current assessment system. They argue that the State Legislature in 1948 enacted what's known as the "county guarantee" that made Nassau responsible for refunds.

"I think that determination is up to the State Legislature," said Catherine Battle, lawyer for two private taxpayers who joined the lawsuit.

One of her colleagues said it was unfair for the localities to have to pay refunds for assessment errors made by the county.

"Your honor, it's the county making the mistakes," said Maureen Liccione, attorney for the Town of North Hempstead.

But Judge Eugene Pigott Jr. said the communities were trying to have it both ways. "You're willing to live with the mistakes if it means more money for you, but not if it doesn't," Pigott told Liccione.