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Lawsuit alleges Nassau and several towns withheld tax revenue

FREEPORT – Nearly 30 villages have filed a lawsuit against Nassau County and several towns, alleging that theyve witheld tax revenue from the villages throughout the county.

The $21.5M suit, led by the village of Freeport, alleges that the county and the towns of Hempstead, North Hempstead and Oyster Bay have withheld tax revenue from the villages.

According to Freeport Mayor Robert Kennedy, village populations were counted as part of town populations, which resulted in more money going to the towns.

“Not only are we not getting what we should be getting from the town, but we also have an option of receiving money from Nassau County. Last year, the village of Freeport and the other incorporated villages received zero,” Kennedy said.

According to Kennedy, Nassau County receives $1.2B a year in sales taxes, of which $220M is attributed to the .75 percent that Nassau was permitted to add on to the sales tax in New York State.

“It is required that one-third be given tot eh towns and cities, which is approximately $70M, and the remaining two-thirds Nassau County can keep, which is about $140M.”

Last October, in a debate between current County Executive Laura Curran and Jack Martins, the then-election hopeful said she would work to see that villages got their fair share of sales tax revenue, but Kennedy has alleged that she is not staying true to her word. Kennedy does, however, say he hopes to find a resolution before the case moves to court.

When asked by FiOS1 News, Nassau County has said that they cannot comment on pending litigation.