America’s Most Taxed Real Estate is in Northport

It’s a taxing distinction.

The Long Island Power Authority claimed Wednesday that National Grid’s Northport Power Station – the subject of a long-running dispute between the Town of Huntington and the Northport-East Northport School District – pays more taxes than any other commercial property in the nation.

That’s right, “The Stacks” as locals call the signature four candy-caned smoke stacks of the oil burning plant, paid $82 million in taxes in 2017 – more than Disneyland and the Empire State Building combined, Newsday reported.

“I went home and I told my little girls, ‘Hey, I’ve got some place for you,’” LIPA CEO Thomas Falcone said at Wednesday’s board meeting. “’You can go to the happiest place on earth, that would be Disneyland. Or you can go someplace twice as good: We’re going to Northport!’”

The Northport Power Station is the most taxed commercial property in the nation. Photo courtesy Kyle Rabin

LIPA’s 2018 property tax assessment report estimates taxes, if left unchecked, could grow to $100 million in 2030. The energy utility claims it should be assessed at 10 percent of the current value based on the age and diminished output of the plant, which translates into a $3.7 million annual tax bill. By comparison, LIPA said residents in the school district paid about $3,000 less per year than neighboring towns and a reduced tax burden would only raise residential taxes by $156 per year.

The Town and school district have been locked in a legal battle over taxes since 2010. LIPA is seeking to claw back $500 million for the Northport assessment alone – power stations in Glenwood Landing, Island Park and Port Jefferson are also battle grounds – if the sides can’t come to a compromise.

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