JAY — A public hearing on a legislative bill to amend a law pertaining to adjustments for the sudden and severe disruption of municipal valuation will be held at 1 p.m. Tuesday in Room 127 at the Maine State House. 

LD 2006, which was carried over from last year, would provide that the “amount of money that a municipality that qualifies for an adjustment for sudden and severe disruption of valuation uses from undesignated fund balances does not reduce the amount of money that municipality receives in state municipal revenue-sharing.” 

The bill is sponsored by state Sen. Lisa Keim, R-Dixfield, and co-sponsored by Rep. Jim Dill, D-Old Town, Sen. Mike Tipping, D-Orono, and Rep. Sheila Lyman, R-Livermore Falls. 

A bill sponsored by Lyman last year that would have reimbursed Jay for $600,000 to offset property tax losses died in the Legislature. 

Jay town leaders used $2.25 million in undesignated funds in 2021 to keep the property tax rate from rising by $8.80 per $1,000 of assessed value, following a digester explosion at the Androscoggin Mill owned by Pixelle Specialty Solutions in 2020. It resulted in $600,000 reduction in state revenue-sharing this year.

The tax rate set for the year still rose $3 per $1,000 of assessed value to make it $20.50, instead of the $8.80 to make it $26.30 per $1,000 of valuation it could have been.

Jay has continued to lose millions in valuation related to the mill downsizing and closing in March 2023. Another company, JGT2 Redevelopment, purchased the mill property and about 1,000 acres in December. It is moving forward to develop the mill into different industrial uses. Paper will not be made there.

Town leaders applied last year for its fifth reduction in valuation through the state program. The state notified the town in November that Jay’s valuation would be lowered because of the Androscoggin Mill closing. The new valuation has not been released yet.

Keim’s bill would create a long-term fix to the sudden and severe law so other towns do not have to go through what Jay did.

In 2022, Jay was projected to receive $1.4 million in revenue-sharing, Jay Town Manager Shiloh LaFreniere previously said.

Revenue-sharing for 2023-24 was projected at $1.1 million. Had the town not used the funds from its undesignated fund balance in the 2021-22 tax commitment, the town’s projected revenue-sharing would have been $1.7 million.

A work session on LD 2006 is scheduled for 1:30 p.m. Jan. 16 in Room 127 at the State House.