LIPA seeks tax relief from the Town of Huntington

Posted: Updated:
NORTHPORT -

A trial began Monday that could result in tax increases for residents in the Town of Huntington.

LIPA, who is battling the Town of Huntingon in court, argued that the town grossly over-assessed its power plant in Northport and that it's overpaid millions of dollars in taxes over the years as a result. The agency says it paid more than $82 million in taxes last year for the Northport Power Plant, but should have paid a fraction of that.

LIPA told the town it would not seek to collect the alleged past overpayment of taxes if it agreed to reduce its tax bill to $40 million over the next nine years.

Huntington Town Supervisor Chad Lupinacci argued that the town's assessment of the plant is fair, and that the stakes are enormous if the town loses the case. The Northport-East Northport school district received more than $54 million of the plant's taxes last year.

Businesses and homeowners say they're hoping for an outcome that'll enable them to keep paying their bills.

The Town of Brookhaven recently settled a similar case with LIPA over a power plant in Port Jefferson. Taxes on that plant will be cut in half over the course of nine years.

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