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A mid-level appeals court has
rejected a challenge to the state’s system of reimbursing
communities with state-owned land.
The decision Friday by the
Appellate Division of State Supreme Court in Dillenburg v. State of
New York reverses a prior decision that could have meant the loss of
more than $70 million in state payments to towns in the Adirondacks.
The case was brought against the
state by John Dillenburg the former supervisor of the Town of
Arkwright in Western New York, who challenged the state’s method for
calculating payments to local government for land the state owns.
In November, Judge Timothy Walker
ruled that the formula used by the state was arbitrary, describing
it as a “hodgepodge” of state laws “devoid of any consistent
rationale.”
The judge issued an injunction blocking the state from paying taxes
on state-owned lands to counties, municipalities and school
districts while not making similar payments elsewhere. But the
ruling was stayed and the payments continued while the state
appealed the case.
In Friday’s ruling, the Appellate
Division found the state Legislature has the discretion to waive
sovereign immunity in certain cases without being subject to an
“equal protection” challenge.
The state’s motion to dismiss the
case was granted, and the judge’s injunction was vacated.
Assemblywoman Teresa Sayward said
the ruling is “extremely important for the Adirondacks.
“Particularly in these tough economic times, it means we can be sure
our communities, schools and counties are going to be receiving the
taxes we’ve been able to receive for Forest Preserve land. Without
those revenues it would be devastating to our taxpayers.”
The decision was also hailed by
Adirondack environmental groups, who had joined the state’s defense.
Adirondack Council spokesman John
Sheehan said that the state has been paying land taxes on Adirondack
Forest Preserve lands for more than 120 years. A reversal of this
long-standing practice would’ve had dire consequences, he said.
“We are thrilled that the Appellate
Court justices saw the logic of our argument to reinstate this vital
system of tax payments,” Sheehan said. “This meant $70 million to
Adirondack communities who would be in very rough financial shape
without this help.”
Neil Woodworth, executive director
of the Adirondack Mountain Club, called the decision “a major
victory for those who live, work and recreate in the Adirondacks and
Catskills.”
“The state Forest Preserve is an
important asset to all New Yorkers, and the fiscal burden of
maintaining these lands should be shared by all New Yorkers and not
fall on the shoulders of a few,” he said in a statement.
Assemblywoman Janet Duprey credited
the rare alliance of state and local government with environmental
groups that helped win the court victory.
“We all have our differences and
will continue to have our differences in many ways, but this was a
time when everybody came together on behalf of the taxpayers –
particularly within the Adirondack Park.”
Michael Bobseine, the attorney representing John Dillenburg, said he
was disappointed with the decision, but understood the court’s
reasoning.
He
said he still believes it’s unfair for the state to pay taxes on
land it owns in places like the Adirondacks while not doing so
elsewhere.
“One
of the judges, Chief Judge Scutter said to me at the end of
arguments ‘Mr. Bobseine, what you are arguing is essentially that
this is unfair,’” he said. “And I said ‘absolutely, it’s unfair.’
I think the court is certainly understanding that this is unfair,
but it is not therefore unconstitutional in this court’s eyes.”
Bobseine said he hadn’t yet talked with Dillenburg about appealing
the decision to the state’s highest court.
He
said other legal issues surrounding state land remain, such as
differences and discrepancies in assessment of state-owned land in
the Adirondacks.
-Chris Knight and Jacob Resneck,
10-6-08
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