In a recent ruling, the Appellate Division of the Supreme Court of the State of New York decided on a significant tax assessment case involving the Long Island Power Authority (LIPA) and its subsidiary, Long Island Lighting Company. The court's decision affects how local municipalities can intervene in tax certiorari proceedings, particularly regarding real property tax assessments from 2010 to 2022. The ruling is crucial for local governments and taxpayers as it clarifies the legal standing of municipalities in tax disputes.
The case, titled Matter of Long Is. Power Auth. v. Board of Assessors, was filed under docket number 2022-05954. It involved multiple parties, including the LIPA entities as the petitioners and the Board of Assessors as the respondents. The Town of Hempstead and the Incorporated Village of Island Park attempted to intervene in the case, claiming that the LIPA entities lacked the authority to challenge the tax assessments due to issues with power supply agreements.
The dispute began in April 2016, when the LIPA entities initiated a series of tax certiorari proceedings against the Nassau County Board of Assessors and the Nassau County Assessment Review Commission. These proceedings aimed to review the assessments of certain real properties located in the Town of Hempstead, Town of North Hempstead, and Town of Oyster Bay. In November 2021, the LIPA entities and the County respondents reached a joint trial stipulation, confirming that all proceedings were properly commenced and joined for trial.
In March 2022, the Town of Hempstead and the Village of Island Park sought to intervene in the proceedings. They argued that the LIPA entities had not met a critical condition in a power supply agreement from 1997 and that subsequent agreements from 2007 and 2012 had not been approved by the Public Authorities Control Board. Therefore, they claimed the LIPA entities were not authorized to challenge the tax assessments. However, the Supreme Court denied their motions to intervene, stating that they were untimely and that intervention was not warranted.
The Appellate Division upheld the Supreme Court's decision in a ruling dated July 29, 2026. The court affirmed the lower court's orders, stating, "The motions to intervene were untimely as they were made nearly six years after the LIPA entities submitted their first petition... Moreover, the proposed intervenors failed to demonstrate that they would have a real and substantial interest in the outcome of the litigation." This ruling was made by a panel of judges, including Colleen D. Duffy, William G. Ford, Laurence L. Love, and Donna-Marie E. Golia.
The court's decision has significant implications for local municipalities and their ability to intervene in tax assessment cases. By affirming the lower court's ruling, the Appellate Division clarified that municipalities must act in a timely manner if they wish to intervene in such proceedings. The ruling reinforces the idea that the Supreme Court has jurisdiction over tax certiorari petitions, regardless of the claims made by potential intervenors.
Going forward, this ruling may discourage municipalities from delaying their interventions in tax assessment disputes. It sets a precedent that emphasizes the importance of timely action in legal proceedings, particularly in tax-related matters. Local governments must be vigilant and proactive if they wish to protect their interests in similar cases.
As for next steps, the decision can potentially be appealed to the New York Court of Appeals, the state's highest court. However, it is unclear whether the Town of Hempstead or the Village of Island Park will pursue further legal action. There are no related cases pending that would directly impact this ruling.