JAY — Maine Revenue Services has reduced the town’s state certified valuation by $61.55 million for 2016 and 2017, and 2018 proposal because of downsizing at the Verso Corp.’s Androscoggin Mill.
The town applied for a reduction through the state’s Sudden and Severe Disruption of Valuation Program in 2017.
It is the third consecutive year Jay has had a severe loss in valuation.
In July 2017 Verso announced it was permanently shutting down the No. 3 paper machine and associated equipment, including a digester and recovery boiler effective Aug. 1.
The machine and equipment had been idled in January 2017 because of declining customer demand. The permanent shutdown was to reduce annual coated paper production capacity at the mill by approximately 200,000 pounds.
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, Town Manager Shiloh LaFreniere said.
According to a letter from Maine Revenue Services to the town, the adjusted valuation — factoring the $61.55 million reduction — is $548.9 million for 2016, $524.9 million for 2017, and $548.4 million for 2018.
Since late 2015, Verso has reduced its workforce by more than 400 employees and shut down the No. 2 and No. 3 paper machines, digester, recovery boiler, pulp dryer and other associated equipment.
dperry@sunmediagroup.net
Jay Town Manager Shiloh LaFreniere (Sun Journal file photo)
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