Power-plant tax change cuts Sachem's levy increase but raises tax rates

What happened

A court ruling moves LIPA power-plant properties in Brookhaven and Smithtown off the tax rolls and into payments in lieu of taxes (PILOTs). Sachem's levy increase for 2026-27 drops from 2.0973% to 0.5625% (about $1.2 million instead of $4.5 million), but homeowner tax rates are now expected to rise more than 3%.

Why it matters to families

The district still collects the money it needs, but fewer properties share the bill, so average homeowners could pay more than the 2.1% they were told in May. Islip has not yet made the change, so the effect may come again next year.

The evidence

The business office said LIPA PILOTs of about $3.3 million move out of the levy, PILOT revenue goes from $1.4 million to $4.7 million, and the average rate increase is now "over 3%" (roughly $230 more per year for an average home in the three towns). The tax-levy vote was pulled on Oct 7 until state equalization rates are final.

The source