The State Senate approved a bill Tuesday that would limit the ability of the Long Island Power Authority to collect refunds on taxes should the utility win its challenge to taxes paid on the Northport power plant.
Sponsored by State Sen. Jim Gaughran and co-sponsored by Republican leader Sen. John Flanagan of East Northport and Democrat Todd Kaminsky of Long Beach, the bill will next go to the Assembly, where Assemblyman Steve Stern, D-Dix Hills, has filed a similar bill.
The goal is to prevent retroactive refunds, should LIPA win the case, which would cost Huntington residents millions. The Northport school district, which has benefited for years from lower taxes because of LIPA’s payments, would be especially hard hit but Town Supervisor Chad Lupinacci warned last year that all residents of the town could be on the hook.
The utility is seeking a 50 percent reduction in its taxes, spread out over seven years. The Town of Huntington has been fighting the claim, and both sides are awaiting a decision while continuing to negotiate terms. LIPA has won a number of settlements in its favor from other municipalities, based in large part of its claims that its plants have been overassessed for years.