Top
Tax Fairness for Long Island
 

SUPPORT TAX FAIRNESS

FOR LONG ISLAND ELECTRIC CUSTOMERS

The Northport Power Plant is Antiquated and Overtaxed, Unfairly Increasing Electric Bills for LIPA Customers.

Learn More About LIPA’s Fair and Sustainable Solution

 
northportplant.jpg
 
 
theproblem.jpg
 

The Northport Power Plant is Unfairly Overtaxed Increasing Your Monthly Electric Bill

Click here to view recent Newsday coverage of the myths and facts surrounding the Northport Power Plant. →

 

The Huntington Town Assessor has overassessed the Northport Power Plant by over $3 billion, resulting in an $84 million tax bill for LIPA — far higher than it should be. That means LIPA’s 1.1 million customers are overpaying on their electric bill every month.

 
 

Here’s How This Overvaluation Impacts You:

 

The Northport Power Plant is the highest taxed commercial property in the United States, leaving LIPA customers to pick up the bill. As shown below, the Northport Power Plant is more taxed than the Empire State Building and Disneyland combined!*SOURCE: COMMERCIAL CAFE
Modified: April 23rd 2019

 
 
 

LIPA’s 1.1 million customers share the annual $84 million tax bill on the Northport Power Plant. Of that, $55 million goes to the Northport-East Northport Union Free School District, which benefits 12,995 households for hosting the plant.

 
 
 

Here’s Why The Northport Power Plant Is Overtaxed:

 
  • Power plants, like cars, are worth less with time. Newer, more fuel-efficient models come to market and major components wear out. The costs to run the plant increase, and the run time decreases, and eventually, older plants are retired and worth nothing at all.


Click here for an explainer video on how to value the Northport power plant.

  • You can see this trend at the Northport Power Plant. Energy production has declined by nearly 63% since 1999, while taxes on the plant have increased 43%. The plant’s 50-year-old technology requires more fuel, staff, and maintenance than modern power plants. These trends will only continue as new, cleaner sources of energy are added to the electric grid to replace the output of older power plants.

 
usage.jpg

NORTHPORT PLANT ENERGY PRODUCTION DOWN 63% SINCE 1999

bargraph.jpg

NORTHPORT PLANT TAXES ARE UP 43% SINCE 1999

 
 

The Town of Huntington’s court filings show their cost estimate to build an entirely new plant with modern technology to replace the out-of-date Northport Power Plant is $2.53 billion. But the Town has valued the plant at $3.4 billion for tax purposes. That means the Town Assessor has valued the 50-year-old plant at $870 million more than their own estimate for a brand new plant.

 
 

How Northport Compares to Other New York Power Plants

 

LIPA has attempted to obtain a fair assessment on the Northport Power Plant from the Huntington Town Assessor for nearly a decade. Now, LIPA and the Town are in court — where an independent third-party will determine the actual value of the plant later this year.

Supporting LIPA’s settlement will ensure that taxes for Town of Huntington residents remain low, while reducing energy costs for customers.

 
 
 
thesolution.png
 

LIPA’s Tax Settlement is a Fair Solution

LIPA has proposed a settlement to pay more than its fair share of taxes on the Northport Power Plant.

 

IMMEDIATE PROPERTY TAX IMPACT ON HOME VALUED AT $565,000

Community Impact of LIPA’s Settlement:

  • Gradually reduces taxes on the plant by 50% through 2028 — when LIPA’s contract to buy power from the plant ends;

  • Still provides a substantial benefit to the Northport community, including approximately more than $42 million in annual benefits each year;

  • Phases-in increases in school taxes for a typical Northport-East Northport homeowner by $15 per month (annually), reaching $120 per month by 2028; and

  • Waives an estimated $657 million in potential tax refunds owed to LIPA’s customers from the Town of Huntington for overtaxing the Northport Power Plant each year since 2010.


    VERSUS

    Community Impact from a Court Action:

  • An estimated $530 per month immediate increase (including tax refunds) in school taxes for a typical Northport-East Northport resident

  • Holds Town of Huntington residents liable for an estimated $657 million in tax refunds — amounting to $114 per month through 2028.

 

A Better Deal for Northport Residents

 

For a typical Northport-East Northport home valued at $565,000, the likely court action could result in nearly $54,000 in tax payments for the homeowner (including refund liability), while LIPA’s settlement plan would phase in a total tax bill of $6,100 through 2027.

 
 

*This analysis is based on one of many potential results in the pending court action as it may apply to multiple tax year challenges. The actual outcome may be higher or lower than the result illustrated above.

See what a court action vs. LIPA’s settlement plan would mean for the following home and commercial property values:

RESIDENTIAL HOMEOWNER SCENARIOS

$415,000 (Average home value in East Northport)

$565,000

$735,000 (Average home value in Northport)

$1.0789M (Average home value in Asharoken)

COMMERCIAL PROPERTY SCENARIOS

$2.4 million

$7.4 million

 

THE TOWN OF BROOKHAVEN AND THE VILLAGE OF PORT JEFFERSON ACCEPTED LIPA's SETTLEMENT OFFER IN 2018

 

The Port Jefferson Power Plant has experienced a similar decline in usage, uses similar dated technology, and has similar operating costs as the Northport Power Plant. The taxes on the Port Jefferson Power Plant will gradually reduce through 2028, keeping school taxes among the lowest in the Town and LIPA will waive over $225 million in potential tax refund liability.

 
greenbackground.jpg
 
communitysupport.png
CD_2018_1019_lipa_0131.jpg
 
 
signthepetition.png
 

Sign the Petition to Lower Your Energy Bill and Secure a Fair Tax Future for all LIPA Customers.

The tax trial is ongoing … the time for a settlement is now.

 
Name *
Name
After signing this petition, you may also receive occasional updates, emails, and surveys from the Coalition for Tax Fairness or its partners. We will not sell or distribute your email address at any time.
 
windmill.jpg