Several mills challenge tax bills, seek relief

Sappi Fine Paper and Verso Paper Co. are among several paper and pulp mill operators in Maine challenging their tax bills — which some worry is a sign of a declining industry.

The Morning Sentinel reported that the paper and pulp mills are seeking lower valuations because they believe they’re being overcharged for their property tax bills. However, town officials said the tax relief could result in higher taxes for residents.

Other mills that have or are currently challenging their tax bills include Madison Paper Industries in Madison and NewPage Paper Mill in Rumford, which have some host communities worried that their declining value could shift local tax costs to residents.

Russ Dreschel, president and CEO of Madison Paper Industries, told the newspaper that “the printing and writing industry is economically challenging right now, and so is manufacturing paper for that industry,” echoing statements by other local mill executives.

If the economic downturn for the paper industry is long-term, it could have an impact on assessments for mill properties, William Van Tuinen, an assessor for Madison and Skowhegan, told the Morning Sentinel.

John Williams, president of the Maine Pulp and Paper Association, echoed those concerns.

“I think in all of these cases the facilities are just not as valuable as they were 10 years ago, or whenever they were last assessed,” he told the newspaper. “That’s in part because there’s a declining market for the types of paper we make.”

Verso Paper mill’s valuation could sink by $220M