RUMFORD — The value of equipment at NewPage Corp. is expected to drop by nearly $100 million this year, which could mean a significantly higher tax rate for the town.

The impact could be as high as $1 million, Town Manager Carlo Puiia said.

NewPage’s drop in value corresponds with the shutdown and removal of the No. 11 paper machine following a number of layoffs at the paper mill during the past year or so.

The reduction in valuation, together with a lack of growth in the town and an expected drop in valuation for Brookfield Renewable Power Inc., will have a significant impact on the tax rate for Rumford residents, Puiia said. The current tax rate is $19.60 per $1,000 valuation.

Mill representatives met with the town’s Board of Assessors and Puiia last week to discuss equipment depreciation and other factors at NewPage, Puiia said.

He said last year’s total assessment for land and equipment came in at just under $300 million. This year’s assessment is expected to be just over $200 million.

The Board of Assessors has some discretion in determining obsolescence or making adjustments according to the economic climate, Puiia said. A final figure for the purpose of taxes will be approved by the assessors early next week, followed by the setting of the tax commitment.

Puiia said selectmen have the right to revisit the adopted $12.5 million municipal budget if they believe such action is required. Any changes that may be made would have to be approved by voters.

Also due to affect the tax rate is the new assessment of Brookfield Power Co. The company is currently assessed at about $107 million for property and equipment. The new assessment for this year is due at the Town Office by late Friday afternoon.

The company is seeking a reduction in taxes due to the drop in energy prices, Puiia said.

The town’s entire valuation has declined from $614 million for fiscal year 2008-09, to just under $500 million for the current tax year, Puiia said.

“We’ve lost 20 percent of our value,” he said.

NewPage is preparing for a new round of layoffs due to the temporary shutdown of the No. 10 paper machine scheduled for Sept. 18. Up to 100 positions are expected to be eliminated.

If taxes rise, Puiia said the lower value at NewPage and Brookfield won’t be the only cause, although it will be the most significant cause. He said other businesses have experienced depreciation.

[email protected]