The Hidden Tax

What is this Hidden Tax?

The hidden tax, also known as the Special Franchise Tax (SFT), is a tax private utilities pay on all pieces of infrastructure that exist within the public right of way, such as water mains, valves, etc. This required tax collection by Liberty New York Water is a pass-through to customers and is incorporated into your overall water service charge. These taxes place an unfair burden on customers and unfairly raise your rates. While these taxes do support the funding of local municipalities, they provide zero benefit to the water system itself.

Liberty NYW President Deborah Franco Addresses the Special Franchise Tax
Understanding Your Water Bill 31-55% taxes

The Hidden Taxes Will Continue to Increase

Unless action is taken by the Governor and New York State legislature to eliminate or significantly reduce the SFT, your bills will continue to be too high:

  1. For most customers, anywhere from 30-50 percent of your water bill is paying for the SFT which provides you no benefit. Because this is a simple pass through, there is nothing your water provider can do to control this expense.
  2. The more Liberty invests into the water system, the higher this tax becomes (asset values go up when you invest in them). SFT taxes actually go UP as Liberty makes necessary and long-neglected investments to improve the water system.
  3. LNYW customers are the only water customers in Nassau County who are forced to pay this hidden tax.

Take Action

Sign up to show your support for the elimination of the SFT.

Dollar Bill Breakout