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Senate Bill Passed to Avert LIPA Tax Grab

On May 22nd, Senator Jim Gaughran’s bill, S.5122a, to protect Long Island taxpayers under assault from LIPA’s tax certiorari lawsuits unanimously passed the State Senate. This bill will prevent LIPA from attempting to collect past year tax payments.

Currently, LIPA uses the threat of hundreds of millions of dollars in back tax payment collections as leverage in its ongoing litigation against local governments. This bill will provide a critical protection to taxpayers, school districts, and local municipalities, all of whom are under siege from LIPA’s tax certiorari challenges.

Senator Jim Gaughran said “LIPA is a runaway authority that is not acting in the best interests of ratepayers. Their reckless tax certiorari lawsuits are a threat to communities across the region and my bill will provide a vital protection to Long Island taxpayers. LIPA has used 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. That stops now.”

Town of Huntington Supervisor Chad Lupinacci said “Thanks to the Senate's passage of Senator Gaughran's bill, taxpayers of the Town of Huntington and the Northport-East Northport School District are one step closer to having the protection of the State against a potentially devastating judgment and I hope the Assembly can pass this measure so that the Governor can sign it and I urge him to do so.”

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