JAY — Selectpersons lowered the tax rate Tuesday, but not too much to affect next year when the significant loss of valuation at the Androscoggin Mill caused by an explosion on April 15 is realized, assessing agent Paul Binette told the board.
They set the rate for 2020-21 at $17.50, 75 cents less than last year. It will also give the town $127,465.71 in overlay for any abatements. If there is money left next year, it will go into the general fund balance. The latter has about $6.9 million in it, Town Manager Shiloh LaFreniere said.
Factoring in the $25,000 for state Homestead Exemption this year, it means a house valued at $75,000 will be assessed $875 in taxes, which is $128.75 less than last year. A home valued at $100,000, will be assessed $1,312.50 in taxes after the exemption, which reflects a decrease of $147.50.
With the exemption a house valued at $150,000, would be assessed $185 less than 2019-20, according to Binette’s information. He and LaFreniere reviewed several tax rate scenarios before determining to present the $17.50 rate to the board. If the rate was set any higher, it would go over the $4.75 million tax cap for the mill as outlined in the final year of a five-year settlement agreement between then owner Verso Corp. and the town. As is, that is $660 less than the cap.
Jay will apply for the state’s Sudden and Severe Valuation Loss Program after April 1, 2021, because of an anticipated significant loss of valuation caused by the explosion that destroyed digesters and halted pulp manufacturing at the Androscoggin Mill owned by Pixelle Specialty Solutions based in Pennsylvania.
The adjusted valuation, if approved by Maine State Revenue Services, would affect the town in 2021-22, LaFreniere said.
The company is still trying to figure out what happened and if it chooses to repair or replace the digesters it would not happen before April 1, Binette said.
It will be the fourth time in recent years the town has applied to have its valuation adjusted because of downsizing and loss of valuation at the mill. In July, the company announced it would lay off 59 people in connection to the explosion.
The state’s Sudden and Severe Valuation Loss Program allows for an immediate adjustment to the town’s state valuation, which affects the amount of money the town will receive for Regional School Unit 73 and state revenue-sharing, LaFreniere previously said.
The appraisal for the mill and associated property and equipment came in at $331 million based on information provided for April 1, Binette said. It was valued at $325.7 million last year. After all of the exemptions, including Business Equipment Tax Exemption, Pixelle will pay taxes on the mill’s value of about $270 million, he said.
The net amount needed to raise to cover the town’s bills, including the municipal budget, its share of RSU 73 and Franklin County taxes is $10.31 million, down from $10.46 million last year.
A second appraisal of the mill will be done next year as required to apply for a valuation adjustment.
NOTE: After all of the exemptions, Pixelle will pay taxes on a mill’s value of about $270 million. It was incorrectly reported.
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