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Town of Huntington, NY - News Details

7/10/2020 - Huntington Town Attorney Releases Details on LIPA’s Proposed Settlement Framework

Huntington – Huntington Town Attorney Nicholas Ciappetta today released details regarding the proposed settlement framework for the tax certiorari case on the Northport Power Plant.


The latest proposal comes as a court decision on the valuation of the Northport Power Plant appears imminent.


“The proposal represents the latest offer presented to the Town to date. Under the proposed settlement, LIPA and National Grid would forego the collection of over $825 million in taxes and interest that they claim are owed. This refund liability could result in the imposition of a one-time payment by each residential property owner in the Town of Huntington ranging, on average, between $10,000 and $25,000, depending on the valuation of the homeowner’s property. Refund liability for commercial property owners would be substantially higher based on their property’s valuation,” Town Attorney Ciappetta explained. The Town of Huntington has not yet voted to accept the proposal.


“Under the framework, the assessed valuation of the Northport Power Plant is incrementally reduced over seven years, with the likelihood of a five-year extension. During the length of the deal, taxpayers would be protected against new challenges to the assessed valuation and also against the shutdown of one or more units at the Northport Power Plant.” Ciappetta continued, “This proposal ensures that LIPA would pay in excess of $460 million in taxes to various jurisdictions in the Town of Huntington over the first seven years of the settlement, including $312 million to the Northport-East Northport School District.”


“In addition to its tax payments, LIPA would make separate cash payments directly to the Northport-East Northport School District over the first seven years of the deal, totaling $14.5 million. These payments, which may be used to save school programs and offset tax increases to residents and businesses, are without precedent,” he said.


The Town will be releasing on its website the detailed terms of the proposed settlement, including the impact on property taxes, the potential impact of an adverse court judgment and refund liability for residential and commercial property owners, and other relevant information.


The Town will also hold informational meetings and answer any questions that residents or others may have regarding the settlement framework and its impact.


LIPA lawsuit updates and answers to frequently asked questions can be found on the Town’s website: