Jay mill owners dispute tax valuation from town
Verso Paper Corp., the Memphis, Tenn.-based owner of the Jay paper mill, has requested that a Delaware bankruptcy judge make a ruling whether the town of Jay reimburse up to $11.4 million in taxes assessed on the property during the last three years.
According to the Bangor Daily News, Verso says that it’s owed the large sum because town officials taxed the property at a higher tax rate even as the mill’s valuation decreased in 2013, which lead to an extra $3.7 million being added to its tax bill.
The company argues that it’s owed a $3.3 million refund for 2014 when the value of the property dropped by 50% from one year before, to less than $400 million. Verso also claims that the company is owed $4.4 million because of taxation at a higher rate than other property.
“Resolving this dispute expeditiously and in this forum is important to the Debtors as they embark on the next, critical phase of these Chapter 11 cases,” Verso officials said in a motion filed last week.
Verso’s request is scheduled to go in front of U.S. Bankruptcy Court in Delaware on April 13, the Maine Board of Property Tax Review in Augusta will hear the paper company’s 2013 tax appeal on May 9 and 10.
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