Judge: Town Can Tax Hancock International Airport; City Will Appeal

Judge: Town Can Tax Airport; City Will Appeal
Newsday

October 21, 2003, 3:07 PM EDT


SYRACUSE, N.Y. -- A state Supreme Court judge has dismissed a portion of a
city lawsuit that seeks to have Hancock International Airport declared
exempt from property taxes.

Justice William Roy ruled that no state or federal laws prohibit the Town
of DeWitt from taxing the airport. However, he said the city can proceed
with a legal challenge to the size of the town's tax assessment on the
airport.

City officials said Monday they will appeal Roy's decision to the
Appellate Division of state Supreme Court in Rochester. They also said
they would go ahead with a challenge of the tax assessment, which they say
should be zero.

For many years, the city has made payments to DeWitt under payments in
lieu of tax agreements. The agreements granted the airport a property tax
exemption in exchange for the city making payments agreed to by the city
and town. The city will pay DeWitt and the East Syracuse-Minoa school
district $420,000 in place of property taxes this year.

Earlier this year, the city said it no longer could afford to make the
payments and refused to negotiate a tax agreement to replace the one that
will expire at the end of the year. The town then slapped a $204 million
assessment on the airport, which the city said would result in a $7
million tax bill.

The city responded in July by asking the court to declare the airport
exempt from property taxes under state and federal laws that it said
restrict or bar property taxes on municipally owned airports located
within another municipality's borders.

The city says it needs to lower airport costs so it can attract new
airlines that would offer lower airfares. It also says it wants to prevent
the town from using the threat of increasing property taxes or payments in
lieu of taxes to block the city from expanding the airport.

Town officials say they're still hopeful of negotiating a settlement.



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