Maine town faces tax increase after paper mill's valuation drops more than $100M

A Maine paper mill's value is dropping by more than $100 million, jacking up local residents' tax rates.

Skowhegan officials lowered Sappi Fine Paper North America mill from $567 million to $463 million. The lower value will impact the town's tax rate, though residents were steeling themselves for an even bigger hit.

Town Manager Christine Almand says the lower valuation means the town's tax rate will increase from $16.40 per $1,000 to $17.15. That will make a $75 difference on a home valued at $100,000. Almand says residents and officials feared a much bigger hit because of the industry-wide downward trend in paper mill valuation.

The mill is the town's biggest taxpayer and will pay just under $8 million to the town. Last year it paid $9.3 million.