Court upholds ruling on town’s tax receipts

Court upholds ruling on town’s tax receipts
North Hempstead Town Hall will be the subject of elevator repairs. (Photo by Jim Henderson via Wikimedia Commons)

A state appellate court has upheld a judge’s ruling that Nassau County needed to return $1.3 million of the Town of North Hempstead’s sales tax revenue it withheld to cover Fashion Institute of Technology reimbursement costs for the 2004-05 school year.

Last Wednesday the state’s Appellate Division’s Second Judicial Department unanimously affirmed a state Supreme Court judge’s June ruling saying that the statute of limitations for the county to take the money had run out.

“We are gratified by the court’s decision,” town Supervisor Judi Bosworth said in a statement.  “The county punched a hole in our 2016 budget and we said they did not have that right. I commend the tenacity of Deputy town Attorney Amanda Abata and town Attorney Elizabeth Botwin in getting our funds back.”

In February, town officials authorized litigation against the county in the event that it withheld a portion of the town’s sales tax revenue.

However, following a letter the county sent to the town comptroller’s office on March 7 saying that it withheld $1,273,496.76, town officials said they would seek a court order blocking the county from the claim.

The state requires that counties pay a portion of tuition for community college students attending schools in other counties.

The county began asking for tuition reimbursements in 2010 from the towns of North Hempstead, Hempstead and the cities of Long Beach and Glen Cove.

In June, Bosworth called the county’s move to try and collect money from 2004 “preposterous.”

“The county intends to appeal the Appellate Court’s ruling as county taxpayers deserve reimbursement for covering this expense from 2005-2009,” Carnell Foskey, the county’s attorney, said.

FIT is a SUNY community college in Manhattan.

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