LIPA, Northport school district reach deal in decade-old tax fight

The proposed settlement will lower the annual taxes LIPA pays for the plant from $86 million to $46 million.

News 12 Staff

Jul 10, 2020, 6:26 PM

Updated 1,657 days ago

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A proposed deal has been reached in the decadelong fight over the taxes paid by Long Island Power Authority on its Northport power plant.
The agreement was made between the Northport-East Northport School Board and LIPA. The proposed settlement will lower the annual taxes LIPA pays for the plant from $86 million to $46 million. That decrease will be done gradually through the year 2027 to help offset the impact on taxpayers.
LIPA has also agreed to pay the Northport-East Northport Union Free School District a total of $14.5 million over those years.
The decadelong battle was brought on after LIPA said it was overtaxed on the power plant and filed a lawsuit to bring down its payments. This settlement means LIPA has also agreed to not seek $800 million in tax refunds.
A LIPA spokesperson told News 12 they're pleased with the settlement:
"The compromise keeps school taxes low in exchange for hosting the power plant. It also lowers the amount of taxes that all 1.1 million customers pay on older fossil fuel plants as we transition towards a cleaner energy future," said Sid Nathan, LIPA's director of communications.
It's still unclear how the payments break down and what it means for taxpayers within the district and the Town of Huntington.
The Northport-East Northport School District told News 12 this settlement, "Represents the best chance for the School District to maintain a high-quality education for our students and to avoid our residents having to pay devastating retroactive tax payments in excess of $10,000 per household along with dramatically increased property taxes for the foreseeable future."
The deal still needs to be voted on by the school board and then the Huntington Town Board.
A breakdown of the proposed property tax increase will be posted soon on the school district's website. The Northport-East Northport School Board is holding a town hall meeting next week.