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Jay property tax rate to increase following loss of mill valuation

5 mins read
Selectpersons, left to right, Tom Goding, Keith Cornelio, Judy Diaz, Tim DeMillo and Terry Bergeron.
Selectpersons, left to right, Tom Goding, Keith Cornelio, Judy Diaz, Tim DeMillo and Terry Bergeron.

JAY – The Board of Selectpersons approved a $21.10 tax rate per $1,000 of property value by a vote of 3 to 2 at Tuesday’s board meeting, marking a $3.85 increase from the previous year.

The .02110 rate includes a .00385 increase from the previous year’s rate, representing a $3.85 increase as applied to each $1,000 in property value. That means a $100,000 piece of property would be taxed at $2,110, presuming a reduction such as Homestead Exemption was not utilized.

The biggest culprit for the increase is the reduction of valuation in the Verso Androscoggin Mill. According to the town’s assessor, Paul Binette, the mill was appraised as of April 1, 2015 at $512 million. Following the closure of two machines and a ground wood operation, as well as a second appraisal, the mill’s value was set at $357.9 million as of April 1, 2016. Two exemptions, one for business equipment and the other for pollution control equipment, further reduced the value by $45.5 million. Furthermore, an additional $1.3 million in taxes will not be collected from Verso next year, as part of a settlement relating to the 2013-2015 tax years.

That settlement also required that the mill’s tax payments not exceed $6.75 million in 2016; the rate approved by the board would result in $6.62 million being collected from the mill.

The town reduced its total municipal budget expenditures by 10 percent earlier this year in anticipation of the change in valuation. Last year, the town also applied to the state for “sudden and severe” support, meeting the criteria of having a single taxpayer reducing its revenue contribution by at least 2 percent. As a result, Binette said, the town was able to reduce its local educational appropriation by approximately $1 million, down to $7.96 million. The county tax bill actually increased, as Franklin County utilizes state valuation data to determine municipal assessments. That data tends to take a couple years to catch up to the present valuation of the town, Binette said, and so the town could expect a reduction next year.

Jay does intend to apply for sudden and severe status with the state this year as well, town officials confirmed.

Binette provided selectpersons with five possible scenarios to consider, ranging from a $20.75 per $1,000 of property valuation rate to a $2,125 rate. The lowest rate would have required using $100,000 out of the town’s undesignated fund balance to support itself, while the others varied in relation to the size of the  overlay.

Board Chair Terry Bergeron suggested that the town would need an adequately funded overlay, money which can cover the cost of abatements and other tax collection-related issues, given the unknowns inherent to Jay’s current situation.

“The $17,000 in overlay [associated with the proposed .02090 rate], I think is woefully small,” Selectperson Tim DeMillo agreed.

Selectpersons Judy Diaz and Keith Cornelio said they had received phone calls from residents concerned about the tax hike. Diaz said that some callers had noted that they were making serious cuts to their own budgets but that the town wasn’t.

“We’ve felt a little pain,” Cornelio said, “but we haven’t felt the average pain of citizens out there.”

The board agreed that another round of serious decisions regarding local spending was likely in the town’s future.

The board voted by a vote of 3 to 2 to set the rate at the $21.10 per $1,000 figure. Bergeron, DeMillo and Selectperson Tom Goding were in favor; Diaz and Cornelio were opposed.

The Homestead Exemption was increased from $10,000 to $15,000 for qualifying homeowners. Utilizing the exemption would result in a tax of $1,793.50 on a qualifying $100,000 residence. Utilizing the $10,000 exemption last year, at the $17.25 per $1,000 rate, would have resulted in a tax of $1,552.

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17 Comments

  1. 30 years ago the good people of Jay, during the strike at the mill, decided to let the mill pay for all kinds of ridiculous increases in spending in the town budget. They added everything they could think of to increase services. Now those chicken have come home to roost as the golden goose is no longer paying. The school department didn’t take m any cuts in their budget but that will have to come as folks won’t be able to pay their taxes. I don’t believe many homes in Jay are valued at $100,000 which means much more will be owed for each house than what they are saying. So many of us are on fixed income. This will mean more economizing in personal budgets. Certainly more cuts will be needed.

  2. “The town reduced its total municipal budget expenditures by 10 percent …” – – – This was never done. In the article at the time, it was easy enough to figure it out and if I remember correctly it was a little over 6 percent. This endless raising of taxes is beyond aggravating. If I write anymore, I may regret what I say.

  3. I have a question. When is it time to ask the town officials why, knowing the decrease in the paper markets, did they not work harder to brining business into the town? If they worked on tax incentives and other incentives to bring more business (sustainable business) when the Otis went down the new business in the area would be picking up the slack of the mill vs. the taxpayer now. My next question is why even when the mill was doing good why where we not working toward expanding business here?

  4. Jay homeowner,

    having surely attended numberous select board and town meetings throughout the years, did you raise these questions to your town officials?

    It is very easy to be a keyboard warrior when hindsight is on your side, but I have a feeling your foresight is as flawed as most.

    Everyone, if you have a problem with how your town is running follow these simple steps;

    1. Put down the keyboard and stop posting anonymous critism on the bulldog
    2. Contact your town officials to get details on the next meeting
    3. Form your thoughts into a logical manner and present issues with solutions to the board
    4. Get on the ballet the next time there is an open seat

    Congratulations, in just 4 easy steps you have become an influence to help steer your community into the future.

  5. You haven’t seen anything yet try moving to farmington we don’t have a paper will to help with anything

  6. Mr. Serious, ( that is an interesting name ), it always amazes me to see people on these comment boards that complain about anonymity with an anonymous name. ( I’m guessing Serious is not your full name ).
    Taxpayers elect people to do the very things you mentioned.
    Maybe you need to stop being so critical of people asking valid questions. What difference does it make what name is assigned to the question?

  7. Serious,

    looks like you are also a “Keyboard warrior” as you have not reviled yourself.
    I am a newer homeowner to the area however I came form Rumford where the same mentality and same narrow thinking turned it in to the hole it is today. There I worked with groups to stop the fall but the town officials could not see past the past.

    Jay is heading down the same road as Rumford. Until the officials ask for ideas or help one person going to the meetings and asking questions that the officials will see as an attack when simply is a question will not change anything.

    Unfortunately I have to keep my identity privet as I do not want the town to focus on giving me a hard time as all towns do when asked a questions about there performance even when it is simply a question not focused at anyone. People have a tendency to take things personal no matter the situation when they have a little power.

    As for you saying that I have a problem with how the officials are running the town. I do not. I believe they are doing a great job running the town. I simply asked why they did not focus more on getting additional business when the possibility that the mill would decline in the future then asked why it was not being done anyway. If there answer was we did not believe that the mill would shutdown a portion of its business because we have seen slumps in the past that they recovered form without issue. That would be an acceptable answer. The only question after that is when do we start working to better the future?

  8. Billyjoebob,

    So exactly were did I “complain about anonymity” in my post, please be specific. I stated a fact, never once did I say or complain about posting anonymously. The fact is posting on here under a alias and expecting real answers is a joke, if you want to get feedback maybe you should provide your name. Thus I dont care to get feedback and the alias. You sound intelligent, think about it.

    JayHomeowner,

    Actually I consider myself more of a Keyboard Ninja, thanks. I’ve lived in Rumford, its been a hole for a long time, well before the decline of the paper industry, so that’s probably not a great example. So that’s some really nice backtracking you’ve done there, maybe a history of politics? Regardless, lets break down your original post.

    “I have a question. When is it time to ask the town officials why, knowing the decrease in the paper markets, did they not work harder to brining business into the town?”

    That’s quite the assumption from someone new in town. How exactly do you know that measures were not taken to positively affect the business climate of the community?

    “If they worked on tax incentives and other incentives to bring more business (sustainable business) when the Otis went down the new business in the area would be picking up the slack of the mill vs. the taxpayer now.”

    Again an assumption that nothing was done to attract businesses with the bonus of a unrealistic presumption that if they did try that it would surely be successful.

    “My next question is why even when the mill was doing good why where we not working toward expanding business here?”

    Lastly, the broken record spins one more time with yet another assumption that the town simply gave up because the mill laid a golden egg on the town and they simply had nothing to improve.

    But I digress, the real answer is as stated before (and ignored clearly) and that is to simply get involved. A community takes a community to strive. It’s simply unfair for people to sit back and expect the work of a few to create a great community. Great communities form from great people. Step up and get involved.

  9. Referring to someone as a ” keyboard warrior ” is certainly not a compliment by most internet definitions.
    I apologize if you were not complaining.
    For some people just ” venting ” is a good way to relieve stress and pent up frustration.
    I tried to ” be involved ” in the past. I felt like I was beating my head against the wall and basically wasting time.
    So every once in a while I write a bit of snark, pay my taxes and call it good. That frees up what precious time I have left to do the things that bring enjoyment rather than frustration.
    But thank you for going the extra mile and being involved.

  10. Its the way of the world, our taxes, like most across the US, are on the rise. We have to deal with it. Move to Leeds or Turner or Farmington or Dixfield or about any other organized town in Maine see what they pay. It could be worse.

    2 things we can not get away from….death and taxes.

  11. Your right Scott but the school budget is way too high .Ours is just under 19 million with 84 graduates. MT.ABRAM is 9 million and only 62 grads may be we shouldn’t have 3 people drive school vehicles and put them on buses.

  12. Scott, school budgets are way out of sight but, most people don’t know or understand everything in a school budget, special education is a huge part of any school budget with the teacher/student ratio nearly 1 on 1 in many cases.

    Are the numbers you presented, 19 mil with 84 students and 9 mil for 62 students the whole student body of said schools or just the graduating seniors?

  13. I would like to point out that your taxes for the school part of the bill actually went down in Jay.

    So if taxes for the schools were down and the town hikes them up $3.85/$1000, why are you blaming the school?

  14. The county funded greater franklin economic development at 42k dollars those are dollars funded from your property tax make sure you county comissioner who voted to fund this is making sure they are bringing in new business although he did state he knew someone who could do a better job at it in the past…….

  15. i have no problem posting my identity. The vote to set the mill rate in excess of 21.00 per thousand, an increase of 4.00 +, has effectively driven the worth of our homes to rock bottom prices. Try selling your home now. The folks on pensions, such as myself, have not, and will not receive an increase in those pensions this year or any year to pay for the increase. A family, with children or as a couple, living in their dream home are now wondering how to pay to stay. Let’s get to what we are taxed for. Bloated wages, benefits, new cars, plow and service trucks, paving etc. etc.. Time to cut staff, benefits and all the wish lists. I am available, anytime, to help The town departments save money and our town.

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