Media Contact: Randolph Yunker - (516) 571-2490

(Mineola, NY) Despite numerous discussions between Assessor Harvey Levinson, the County Attorney's Office, and officials at the Long Island Power Authority (LIPA), LIPA has maintained its refusal to pay property taxes estimated to be approximately $7 million dollars to the North Shore Central School District, County, and Town of Oyster Bay for two power generators that were built by Keyspan on its Glenwood Landing property in 2002. As a result of this refusal and according to the provisions of New York State Real Property Tax Law governing the taxable status of utility properties, Assessor Levinson has determined that the facility is taxable and that LIPA will not be permitted to extend the umbrella of its exempt status to Keyspan's generators.

According to Assessor Levinson, Article 18 of New York State Real Property Tax Law and Office of Real Property Service (ORPS) guidelines clearly state that utility equipment is to be assessed separately from the land on which it is located. While Keyspan, a publicly traded corporation listed on the New York Stock Exchange and the fee title owner, constructed its generators on tax exempt LIPA property, it is not entitled to a tax exemption. Because the facility is not tax exempt, LIPA (under the terms of a purported 25-year agreement made with Keyspan) will be held responsible for millions of tax dollars in the future.

To date, neither Keyspan nor LIPA have paid any taxes to the school district, County or Town since the plant became operational in 2002.

In May, the Nassau County Attorney's Office requested that LIPA provide a number of documents needed to ascertain the status of the property and the appropriate assessment. Thus far, LIPA has refused to provide a complete copy of its agreement with Keyspan or the final cost to construct the generators. The last cost estimate noted by Keyspan in its 2002 Industrial Development Application was approximately $95 million dollars. Based on the present Utility tax rate of $758.913 per one hundred dollars of taxable assessed value, LIPA should pay over $4.7 million dollars per year to the North Shore Central School District. Additionally, approximately $2.5 million dollars in taxes would be owed to the County and Town of Oyster Bay.

"It is my hope that LIPA officials will agree to fulfill their legal obligations to the school district and taxpayers," concluded Assessor Harvey Levinson.