Resolve, Relating to the State Valuation of the Town of East Millinocket
Maine Legislature, Session 125, LD 1578
Committee: Taxation
Sponsors: CLARK, THOMAS

Legislative Document 
No. 1578 
H.P. 1161 
House of Representatives, May 18, 2011 
Resolve, Relating to the State Valuation of the Town of East 
Millinocket 
(AFTER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative CLARK of Millinocket. 
Cosponsored by Senator THOMAS of Somerset. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the valuation of property within a municipality has a strong effect upon 
the calculation of intergovernmental funding, including state-municipal revenue sharing, 
education funding and county taxes; and 
Whereas, the Town of East Millinocket has in the past derived a large portion of its 
tax valuation from the presence of a pulp and paper mill located in the town; and 
Whereas, the owner of that pulp and paper mill, Katahdin Paper Company, LLC, 
and its parent company, Brookfield Asset Management, have announced the closure of 
the mill after failing to find buyers for it; and 
Whereas, this closure will have a very negative effect on the economy in East 
Millinocket and the surrounding area, including the loss of approximately 400 jobs; and 
Whereas, this closure will result in the loss in local assessed valuation of 
approximately $66,000,000; and 
Whereas, this local loss in valuation would not in the routine course of equalized 
state valuation procedures be incorporated into the equalized state valuation of the Town 
of East Millinocket for 2 years; and 
Whereas, this 2-year lag between equalized state valuation and local valuation 
causes a substantial financial hardship for the Town of East Millinocket because it results 
in the town's receiving less state-municipal revenue sharing and less education subsidy, 
and paying more county taxes; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, be it 
Sec. 1.  State valuation of the Town of East Millinocket.  Resolved:  That, 
due to the loss of valuation resulting from the closure of the pulp and paper mill owned 
by Katahdin Paper Company, LLC, notwithstanding the Maine Revised Statutes, Title 36, 
sections 208 and 208-A, the State Tax Assessor shall reduce the state valuation of the 
Town of East Millinocket for the years 2010 and 2011 by $66,000,000; and be it further 
Sec. 2.  Calculations.  Resolved:  That, notwithstanding any other provision of 
law, for the fiscal year beginning July 1, 2011, for purposes of state-municipal revenue 
sharing, school funding and apportionment of county taxes, calculations must be made 
using the valuation of the Town of East Millinocket reduced pursuant to section 1. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
The Town of East Millinocket is the site of the recently closed Katahdin Paper 
Company pulp and paper mill.  The closure of the mill has resulted in the loss of 400 
jobs.  The closure of the mill will result in the town's reducing the valuation of the mill 
property by $66,000,000.  This will lead to considerable budget cutbacks and financial 
stress at the local level.  This situation will be made worse because of the time lag of 2 
years between local and state valuation.  Unless legislation is passed, the Town of East 
Millinocket will have to pay county taxes based upon the lost valuation and will lose 
education subsidy and state-municipal revenue sharing based upon the lost valuation.