The Association for a Better Long Island (ABLI) is applauding a decision by the Huntington Town Board that has put an end to a decade long legal dispute that saw the Long Island Power Authority (LIPA) claim its Northport power plant was overtaxed, which would have required near a billion dollars in tax refunds.
"Long Island history will record this as The Great LIPA Compromise of 2020. While neither side believes the final settlement is the best possible deal to protect their interests, LIPA's 1.1m ratepayers will now be free of a burden that was in tens of millions of dollars and the affected communities will receive millions more in a phasedown settlement. That compromise settlement is in the best interest of the region, the economy and the ratepayers," stated Kyle Strober, executive director, Association for a Better Long Island, a leading regional economic development organization.
The Huntington Town Board approved a resolution to settle with LIPA by a vote of 4 to 1.
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LIPA will see taxes on the Northport plant reduced from $86 million to $46 million annually over seven years. In addition, the East Northport-Northrop school district had already approved the settlement plan and will see an additional $14.5 million over the seven years as part of the strategy of preventing “sticker shock” among district taxpayers.
No settlement could have led to a potential decision by the courts that would have some Huntington Town residents see as much as a $4,500 increase in their property taxes to pay for the award.
