Bill would block LIPA from collecting back taxes

The State Senate has passed a bill that would prevent LIPA from collecting hundreds of millions of dollars of past taxes resulting from successful power-plant tax court challenges.

Sen. James Gaughran (D-Northport) sponsored the bill to “limit the remedies available to LIPA when bringing tax certiorari challenges by prohibiting relief in the form of repayment of all or part of the taxes assessed against any power plant, transmission line or substation from a prior year,” according to the Senate bill.

Gaughran accused LIPA of using the “threat of collecting back taxes on its power plants to bully communities into silence and to persuade local government officials into settling these lawsuits.” He said the bill would protect the potentially dozens of other communities that face LIPA tax challenges for other properties, such as substations and transmission lines. LIPA pays $84 million a year in taxes for the Northport plant.

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