Matter of Town of N. Hempstead v. County of Nassau

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At issue in this case was whether the Education Law permits Nassau County to charge back to the Town of North Hempstead amounts the County paid on behalf of Town residents attending the Fashion Institute of Technology (FIT). The Town commenced this proceeding seeking a declaration that the County lacked authority to charge back FIT expenses to the Town. Supreme Court found that the County was entitled to collect chargebacks from the Town and that the County was entitled to offset the Town’s resulting liability by retaining the amount owed from the Town’s share of County sales tax revenue. The Appellate Division concluded that the County was required to adopt a formal resolution in order to authorize its treasurer to collect the chargebacks and that the County was not entitled to offset the amounts owed by the Town against the sales tax revenue. The Court of Appeals modified to uphold the County’s offsetting of the Town’s liability for FIT chargebacks from sales tax revenue, without requiring the issuance of a new resolution, and as so modified, affirmed. View "Matter of Town of N. Hempstead v. County of Nassau" on Justia Law