The Long Island Power Authority is suing the Town of Huntington, claiming it overpaid taxes on its Northport power plant by hundreds of millions of dollars due to an inflated assessment by the town. LIPA wants the plant's assessment to be reduced and to recover the money it says it overpaid.
The New York state Senate passed legislation this week that would stop LIPA from being able to recoup those taxes. The measure still needs action from the state Assembly and the Governor.
LIPA says Huntington overvalued its Northport power plant, and the utility company has overpaid its taxes for years. Town officials value the plant at $3.4 billion, but LIPA says the plant is worth about $190 million.
LIPA hopes that if the assessment is successfully challenged in court and the utility company will retroactively be rewarded the difference in overpaid taxes for the previous 10 years.
Huntington residents say this would devastate their town, school budgets and property values.
LIPA says the bill would allow the town to continue to overvalue and overtax electric utilities.