EAST MILLINOCKET – Tax disputes between the town and its largest taxpayer are piling up.
For the third year in a row, Great Northern Paper Inc. is disputing its tax bill. This year GNP is asking the town for a $1.6 million refund, which brings the total of the three refunds sought by the company to more than $4.5 million.
The latest tax abatement request, involving GNP’s year 2001 bill, comes just as the State Board of Property Tax Review is preparing to rule on the 1999 tax dispute. The state board is expected to decide the case in late June.
The company filed its request for an abatement of its 2001 taxes last week. Town assessors have 60 days to respond to the abatement request. Should assessors not respond, the request automatically is considered denied.
Administrative Assistant Marry Morris said selectmen were not surprised about the filing but were surprised at the amount the company says its property was worth.
Like the selectmen, Lee Bragg, an Augusta attorney representing the town, said he also found the company’s latest filing interesting. Bragg said the company has claimed the same value – $120 million – in its abatement requests, yet had amended its 1999 value up to $151 million during an earlier state board hearing.
Brian Stetson, GNP’s spokesman, said the latest filing was consistent with the company’s previous position. He said the company anticipates a resolution of the tax issue with a state board decision expected next month. He declined to comment further saying it would be inappropriate to do so during the ongoing tax case.
Great Northern is disputing the more than $205 million value the town placed on all of its properties and equipment in East Millinocket, which includes its paper mill. The company’s 2001 tax bill was $3,845,9918. The company pays about 80 percent of the taxes raised in East Millinocket.
In the abatement request, the company said its value should be reduced by at least $85,774,200, which translates into a $1,603,119 tax refund.
According to information from the Maine Revenue Services, the state listed $211,742,271 as the 2000 value of Great Northern’s properties in East Millinocket, which is nearly identical to the value the town placed on the company for 2001.
State figures for 2001 are not available, but officials said no significant changes are expected.
“This overvaluation results from, among other things, an assessed valuation that is manifestly wrong,” stated GNP President Eldon Doody in the application.
Last June, the company disputed its 2000 tax bill and asked the town for a $1.54 million tax refund. Great Northern disagreed with the more than $211 million value the town placed on all of its properties and equipment. The company said its value should be about $120 million, or $91,742,300 less than the town’s value.
Last February, the company disputed its 1999 tax bill and asked the town for a $1.4 million tax refund. The company said the more than $204 million value the town placed on all of its properties and equipment should have been about $120 million, or $84,125,580 less than the town’s figures.
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