JAY — The state approved the town’s application for a sudden and severe loss of valuation, and effectively reduced the town’s state valuation by $142.35 million for each of 2013, 2014, 2015 and 2016.

Town officials filed an application in late March to have the town’s valuation reduced and recognized immediately because of the declining value of Verso Androscoggin’s paper mill and associated property in Jay for those four tax years.

The application was approved Tuesday, June 7.

“We are very pleased that our town, in conjunction with Maine Revenue Services, was successful in working through the state’s complex Sudden and Severe Valuation Loss Program,” Town Manager Shiloh LaFreniere said.

“This adjustment affects how much (money) our town will receive for education subsidies and Maine revenue-sharing,” she said. “The loss of value at Verso’s Androscoggin Mill continues to have a significant impact on the citizens of Jay and we are grateful that the Maine Revenue Services has a program in place to assist towns such as ours during times of significant valuation loss.”

Jay is projected to receive $57,577 more in state revenue-sharing for 2016-17, she said. The state’s contribution in education funding for the town will also increase by $635,786, she said. The town previously was getting $205,898 for debt service, she said.

The certified state valuations for the town were previously $1 billion in 2013, $1 billion in 2014, $801.9 million in 2015 and $864.6 million in 2016, according to information provided to LaFreniere by Mike Rogers, supervisor of municipal services for the Maine Revenue Services Property Tax Division.

After the $142.35 million was deducted, the adjusted valuations are $862.2 million for 2013, $876.6 million for 2014, $659.6 million for 2015 and $722.2 million for 2016.

Regional School Unit 73 has adjusted Jay’s education assessment accordingly for this year, district Business Manager Michele Coates said Friday. It dropped from $8.59 million to $7.96 million, about $1 million less than this fiscal year, according to her figures.

But because the budget was already approved by voters in April and the tax assessments were sent to all three towns, the assessments to the towns of Livermore and Livermore Falls will not change for the year beginning July 1, she said.

If the district had to change the 2016-17 assessments for local-only appropriations for the $1.7 million, that would be over the state’s essential programs and funding formula. Livermore and Livermore Falls would also see adjustments, not only Jay.

Livermore’s tax assessment is $1.89 million, $53,235 less than this fiscal year. With Jay’s valuation adjustment factored in and all town assessments changed, Livermore would have paid $1.92 million, $21,527 less than this fiscal year.

Livermore Falls’ assessment is $1.63 million, $8,030 more than this fiscal year. If adjusted, Livermore Falls’ assessment would increase to $1.66 million, $34,147 more than this fiscal year, according to Coates’ figures.

Jay’s initial assessment was $8.59 million, nearly $373,503 less than this fiscal year. 

dperry@sunmediagroup.net

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