An Act To Modify the State Valuation of the Town of Madison To Reflect the Loss in Valuation of the Madison Paper Company, To Modify the State Valuation of the Town of Skowhegan To Reflect the Loss in Valuation of the S.D. Warren Company and To Amend the Law Governing School Subsidy Distribution in the Circumstance of Sudden Loss in Municipal Valuation
Maine Legislature, Session 127, LD 0282
Committee: Taxation
Sponsors: McCABE, WHITTEMORE, DUNPHY, FARRIN, PICCHIOTTI, SHORT, SKOLFIELD, STETKIS
Amends: 20-A MRSA §15672

Legislative Document 
No. 282 
H.P. 200 
House of Representatives, February 5, 2015 
An Act To Modify the State Valuation of the Town of Madison To 
Reflect the Loss in Valuation of the Madison Paper Company, To 
Modify the State Valuation of the Town of Skowhegan To Reflect 
the Loss in Valuation of the S.D. Warren Company and To Amend 
the Law Governing School Subsidy Distribution in the 
Circumstance of Sudden Loss in Municipal Valuation 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative McCABE of Skowhegan. 
Cosponsored by Senator WHITTEMORE of Somerset and 
Representatives: DUNPHY of Embden, FARRIN of Norridgewock, PICCHIOTTI of Fairfield, 
SHORT of Pittsfield, SKOLFIELD of Weld, STETKIS of Canaan. 
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 value of property within a municipality is a major factor in the 
calculation of municipal revenue sharing and general purpose aid for local schools; and 
Whereas, the Town of Madison derives a large portion of its tax valuation from the 
presence of the Madison Paper Company, and the Town of Skowhegan derives a large 
portion of its tax valuation from the presence of the S.D. Warren Company; and 
Whereas, between the 2013 and 2014 tax years, the value of the Madison Paper 
Company has been reduced by $149,700,000, representing 65% of its taxable value, and 
the value of the S.D. Warren Company has been reduced by $100,000,000, representing 
18% of its taxable value, as a result of the weakness in the market for printed paper 
products; and 
Whereas, prior to this decrease, the Madison Paper Company represented 
approximately 40% of the tax base of the Town of Madison, and the S.D. Warren 
Company represented approximately 9.5% of the tax base of the Town of Skowhegan; 
and 
Whereas, unless immediate action is taken to account for this decrease in valuation, 
the Town of Madison and the Town of Skowhegan will experience the loss of significant 
revenues based on the decreased valuation of the Madison Paper Company and the S.D. 
Warren Company; and 
Whereas, in the absence of legislative action, the state valuation of the Town of 
Madison and the Town of Skowhegan will not be adjusted to reflect this significant 
reduction in value for 2 years; and 
Whereas, in the absence of legislative action, the distribution of general purpose aid 
for local schools to Regional School Unit No. 59, a school unit composed entirely of the 
Town of Madison, and to Regional School Unit No. 54, a school unit composed of the 
towns of Skowhegan, Canaan, Cornville, Mercer, Smithfield and Norridgewock, will be 
calculated on the basis of an inaccurate equalized valuation for at least 3 years; 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 enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §15672, sub-§23, ¶C, as enacted by PL 2013, c. 203, §1, is 
amended to read: 
C.  For fiscal year 2015-16 and each subsequent fiscal year, the average of the 
certified state valuations for the 3 most recent years prior to the most recently 
certified state valuation, except that, for a municipality that has experienced a net 
reduction in equalized municipal valuation of at least 2% from the equalized 
municipal valuation of the previous year, "property fiscal capacity" means the most 
recently certified state valuation. 
Sec. 2.  Modify 2015 state valuations.  Notwithstanding the Maine Revised 
Statutes, Title 36, the 2015 state valuations for the Town of Madison and the Town of 
Skowhegan for the purposes of calculating state-municipal revenue-sharing funds and the 
distribution of general purpose aid for local schools must be based on a valuation that 
values the property of the Madison Paper Company in the Town of Madison at 
$80,000,000 and values the property of the S.D. Warren Company in the Town of 
Skowhegan at $463,224,200. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Current law provides that the property fiscal capacity of a municipality for purposes 
of determining school funding under the Essential Programs and Services Funding Act is 
the average of the certified state valuations for the 3 most recent years prior to the most 
recently certified state valuation.  This bill provides an exception for a municipality that 
has experienced a net reduction in equalized municipal valuation of at least 2% from the 
previous year that sets the property fiscal capacity at the most recently certified state 
valuation. 
It also provides that the 2015 state valuation for the Town of Madison for the 
purposes of calculating state-municipal revenue-sharing funds and the distribution of 
general purpose aid for local schools must be based on a valuation that values the 
property of the Madison Paper Company in the Town of Madison at $80,000,000 and the 
property of the S.D. Warren Company in the Town of Skowhegan at $463,224,200.