New York – Villages Sue County, Towns For ‘Fair Share’ Of Sales Tax Revenue

A number of villages are suing Nassau County and the towns of North Hempstead, Hempstead and Oyster Bay for $21.5 million, according to court filings, in a bid to get what they see as their fair share of sales tax revenue.

According to the lawsuit, villages were entitled to up to one-sixth of the sales tax revenue remaining after towns and cities have received their funding from Nassau County. The intent of the laws, the lawsuit goes on to say, was to benefit all municipalities and help defray costs.

Instead, the suit alleges, the towns have used the village’s populations to boost how much money they get, while allocating money into a general services fund rather than a special revenue fund and “unlawfully and arbitrarily” withholding tax revenue from the village.

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by Janelle Clausen
November 14, 2018

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