Bulk of Taxes LIPA Pays Go Toward Port Jeff School District

Almost 62 percent of the taxes that LIPA pays Town of Brookhaven go to the Port Jefferson school district while 30 percent of the total village budget comes from LIPA village tax.

A presentation given by the shows a breakdown of where the tax money goes that in the village, much of it funding the school district.

almost $23 million to the Town of Brookhaven last year in taxes on the power plant based on a value of $1.6 billion. The gets 61 percent of that money, about $14 million. According to Board of Education Vice President Mark Doyle, about 40 percent of the school district’s revenue comes from those LIPA taxes.

The Suffolk County Police Department also gets a benefit of almost $4 million, 17 percent of the tax bill and the gets 6 percent of the money, which translates to $1.3 million.

LIPA also pays village taxes on the plant. In the 2010-2011 budget for the , LIPA paid $2.5 million in taxes. According to the LIPA Task Force presentation, the utility is the number one source of tax revenue for the village accounting for just about 30 percent of the total budget. Residential taxes come in second as a source of revenue for the village at $1.97 million or 24 percent of the total budget. The total 2010-2011 budget for Port Jefferson village is $8.3 million.

Where Do LIPA Taxes Paid to Town of Brookhaven Go?

Port Jefferson School District



Port Jefferson Library



Port Jefferson Fire District



Suffolk County



Suffolk County Police






Town of Brookhaven



Town of Brookhaven - Highway



Other Suffolk County



Total Brookhaven Tax Bill



Source: Repower Port Jefferson Presentation

Breakdown of  Village Tax Revenue for Port Jefferson for 2010 - 2011 Budget:













Pilot Payment



Utilities Gross Receipts



Franchise Fee



Parking Fees












Mortgage Tax






2010-2011 Budget



Source: Repower Port Jefferson Presentation

Peter C. Walsh March 28, 2011 at 04:26 PM
LIPA is a public benefit corporation. However, I doubt their mission statement includes the provision for this type of public benefit, tax support for municipal services from an idle plant. Letting this plant operate at five percent capacity is a waste of an available resource at a time when the nation is shipping its profits overseas to purchase fuel for energy consumption. It's time to do what ever it takes to make the plant run efficiently on some type of fuel produced in the United States, i.e., coal or gas. Stop talking and get the job done.
Nick Nola March 28, 2011 at 04:36 PM
I live in Port Jefferson Village. I was wondering if I would qualify for a reduction in taxes, if I didnt use my house as much. Maybe when I go on vacation, i could get a refund or a reduced rate in taxes. It would just seem fair to me that reduced useage experienced by one entity should be available to another.
Larry March 30, 2011 at 09:45 PM
The power plant is owned by National Grid, a private British company. They pay property taxes on power plants which they own all over Long Island. National Grid sells its product to LIPA, a government agency. National Grid includes ALL of its overhead costs in the price of its product. In reality, all levels of government pay the overhead costs of private companies they do business with every single day. When the federal government buys jets from Northrop Grumman, or the Town of Brookhaven buys a ream of paper, they may be exempt from sales tax, but property tax is built into the overhead costs of the private vendor. The only reason why paying property taxes is an issue here is that LIPA for political purposes, has chosen to break out this portion of overhead and make it an issue. If LIPA does not want to pay property taxes, they should buy the plants and take them off the property tax rolls. Whether the level of property tax being collected is correct is another matter.


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