LIPA agrees to pay $3 million to settle decade-old tax challenge with the Town of Huntington
LIPA has agreed to pay $3 million to sweeten the deal in its effort to settle a decade-old tax challenge with the Town of Huntington just days before the town board votes on the proposed agreement.
Denise Schwartz, whose son is a senior in the Northport-East Northport School District, says she's disappointed to hear the district agreed to the tax settlement on the Northport Power Plant.
The Town of Huntington tells News 12 the $3 million was offered by LIPA to "help reduce the impact of COVID-19 on town residents."
Schwartz questions the timing of it.
The proposed agreement will lower the annual taxes LIPA pays for the plant from $86 million to $46 million. That decrease will be done gradually through 2027 to help offset the impact on taxpayers.
Also, LIPA has agreed to pay the district a total of $14.5 million over those years.
Other taxpayers and parents, like Paul Darrigo, say accepting the offer is not ideal but must be done - even though it means having to pay a higher tax rate going forward. He believes it's a tax rate that the community can adjust to over time.
LIPA previously said it was over-taxed on the plant and filed a suit to bring down its payments.
The Town of Huntington will be holding a final online public forum on the settlement on Sept. 3 at 6 p.m., which will be followed by a board vote at 8 p.m.