Appeals court reinstates lawsuit alleging tax assessment discrimination in Nassau

A lawsuit alleging Nassau County has discriminated against minority homeowners’ tax assessments to the tune of $1.7 billion has been reinstated by a state appeals court, overturning a decision by a Nassau judge.

Not only did the appeals court rule the plaintiffs have legal standing to sue, it also transferred the case to Queens, saying it was unlikely the matter could get an impartial jury in Nassau because the outcome could shake up countywide assessments.

The 4-0 decision favoring minority plaintiffs was handed down Wednesday by the Appellate Division of the State Supreme Court. The county could ask New York’s top court to overrule and dismiss the case but reversing a unanimous decision isn’t common.

The lawsuit was filed by Wayne Hall, a former mayor of Hempstead Village, and other homeowners who alleged Nassau, under former County Executive Edward Mangano, had abandoned tax assessment reforms that were meant to ensure minority-owned properties weren’t assessed unfairly.

The plaintiffs’ attorney declined to comment Thursday. The lawyer representing Nassau didn’t immediately return messages.

A 2000 lawsuit settlement over assessments was supposed to make the county essentially adjust assessments as properties appreciated. Hall and the other plaintiffs claim the county abandoned those policies. As a result, they claim taxes on 61% of the top-valued properties in the county from 2010-16 rose just 5%. Taxes on the bottom 39% — less-wealthy homeowners — climbed 36%.

Hall had filed a federal lawsuit, which was dismissed because of lack of federal legal grounds to sue. Plaintiffs changed course and filed in state court.

In February 2024, Justice Lisa Cairo, of  the state Supreme Court in Nassau County, dismissed Hall’s lawsuit, saying the plaintiffs failed to demonstrate a "negative impact of property tax assessments," according to the Appellate Division.

But on Wednesday, the Appellate Division said the Nassau judge erred.

"Here, contrary to the determination of the Supreme Court, the allegations in the complaint, if true, do establish standing, including that the plaintiffs suffered an injury-in-fact," Judge Betsy Barros wrote for the court, adding: "It is undisputed that the plaintiffs are homeowners in predominantly nonwhite census tract communities in the county."

Barros also granted a motion to shift the case to Queens. She said she agreed with the plaintiffs that it would be hard to find an impartial jury in Nassau.

Wrote Barros: "Many prospective jurors would have an actual or at least perceived pecuniary interest in the outcome of this case, which warrants moving the trial to another county."

By Yancey Roy

yancey.roy@newsday.com@yanceyroy