By DEBBIE ROSEN and LARRY MAIER
As Nassau grapples with ways to straighten out its fiscal woes, one resident took a stand against the way the county currently does business.
A lawsuit filed by a Christine D. Marcin of Garden City seeks to change the way the county refunds property taxes. A successful lawsuit could mean that school districts would have to reach into their own pockets to refund tax payments to over-assessed homeowners. Local school officials expressed concerns about making any changes to the current system.
Ms. Marcin filed the suit in a Federal District Court in October. The suit seeks to eliminate the section of the Nassau County Administrative Code that requires the county to pay the full amount of property-tax refunds to homeowners who successfully challenge their tax bill, including the school-tax portion. The suit contends that this section of the county code is unconstitutional, a violation of the equal protection clause of the Fourteenth Amendment. New York State, Nassau County, and all county school districts are named as defendants in the lawsuit.
According to Ms. Marcin's attorney, Alan Levine, some school districts are more successful than others in winning property-tax challenges against the county. But, since the county has to borrow money to pay these refunds, taxpayers across the county must repay the bond. In essence, said Mr. Levine, some school districts and their residents are benefiting at the expense of others.
Court papers obtained by the Herald indicate that Oceanside, Island Park, and Rockville Centre school districts have subsidized other county school districts to the tune of nearly $6.5 million over the past 10 tax years. Despite this, local school-district officials are unanimously opposed to deviating from the status quo.
"The possible impact of this case to taxpayers could add up to millions of dollars," said Dr. Herb Brown, Oceanside Schools superintendent. "Hundreds of thousands of dollars every year should go to educating students and not paying for something the county pays for every year."
Dr. Edward Price, acting superintendent of Island Park School, said that while Island Park may currently subsidize other school districts, that could change in the future. He also voiced his concern over schools having to answer for county decisions.
"Why should a school district be subject to the interpretation of the county?" Dr. Price wondered, referring to the decision to grant a property-tax refund.
"Apart from all the money that would be lost, we would have to set up an entire, separate administration within the system to deal with [collecting and refunding taxes]," said Dr. William Johnson, superintendent of Rockville Centre Schools.
Unlike the aforementioned school districts, Baldwin has benefited financially from the current system. According to court papers, the Baldwin school district has been subsidized nearly $1.8 million dollars over the past 10 years. Dr. Lee Chapman, Baldwin superintendent for administration, said he was unable to comment on the lawsuit or the refund policy until the county makes more information available.
Political ties
Ms. Marcin is the wife of John Marcin, chairman of Nassau's Board of Assessment Review and a political ally to Mr. Gulotta, who was also named as a defendant in the suit. In an interview last week, Mr. Gulotta denied any involvement with the court case, despite the fact that he is in favor of the reform that could save the county millions.
"Each year we pay out almost $100 million in refunds, for which the county is only responsible for nineteen percent," said Mr. Gulotta, who noted that Nassau is the only county in the state that follows such a system.
Also, Mr. Gulotta does not believe that the county's plan to reassess all properties by the 2004 tax year will solve the problem. "Some people are suggesting that the reassessment of all properties in the county will result in a diminution of [tax-refund] claims," he said. "I am concerned that the contrary will occur."
