Should the city of Old Town tax Expera Specialty Solutions at the price they purchased the mill, or at what the town believes its value to be?

6 Comments

  • Concerned citizen - 9 years ago

    A mill is considered a special purpose property. A mill is a specific improvement for a specific use. How many buyers for these properties are there? The valuation of the mill is most likely based upon the depreciated replacement cost, but it was built or remodeled for a specific use by a company that had a need for improvements that met a business need (when they were profitable). Take the business away and tell me what the real estate is worth if nobody is going to be able to utilize the buildings, especially if the configuration is specific to the prior owner's use. The buyer very likely got a decent deal, but there is such a disparity between the sale price and assessed value that one has to ponder why a property like this would sell for 14% of the assessed value... how about that if it really were worth $51 million that somebody would have stepped up and paid more. I'd love to know how many buyers were bidding on the property when it sold... that would be very telling. The reality is that if the mill is purchased out of bankruptcy, why wouldn't a buyer expect to receive an assessment based upon its sale price? Unfortunately for mills in Maine, this is "the market."

  • John - 9 years ago

    So Rick & Carol, it would be perfectly fine after you make a great deal on your average car and get a super price if our state government decides ( without any input or choice on your part ) to all of a sudden asses the value of ALL cars sold in the state to be the same value tax wise as the most expensive car sold? Old Town should consider itself lucky to have someone occupying the property and paying taxes period. It could be sitting idle and no tax collected at all.

  • Jack - 9 years ago

    I find it hard to believe that the new owners of the mill were not aware of the potential tax bill that would surely come due at some point. Did they feel that the 10 million price tag was a real steal for a 51million business, or is the town of Old Town trying to shake down a large company in an effort to avoid dealing with the local taxpayers' property tax bills that never seem to go down. All of the governments (federal, state, and local) we are subjected to in this country are out of control to the point where they feel empowered to tax us all at will with fewer and fewer courses of action available to us. The phase 'taxation without representation' comes to mind. We are quickly becoming a country where our government is becoming our master, not out servant. All of that will eventually come back to bite us for sure.

  • MOPANG - 9 years ago

    ISN'T IT AMAZING THAT IF YOU PAY AN EXORBITANT PRICE THE ASSESSOR HAPPILY USES THAT AS YOUR ASSESSABLE VALUE. IF YOU GET A BARGAIN, SAVE THE EXTRA CASH FOR TAXES. THE TOWN WILL DO ALL THEY CAN TO TAX TO THE MAX. REMEMBER: WHAT'S MINE IS MINE AND WHAT'S YOURS IS OURS IS THE VIEW OF THE BUREAUCRATS.

  • Rick - 9 years ago

    I agree with Carol. I also have been in municipal government and the assessed value is based not on bargain prices, but on actual value. Could you imagine what would happen if someone bought a place for way under fair market value because of an interfamily sale or some other reason? What would happen if someone was given a piece of property? Would the property taxes be $0.00 for the new owner?

  • Carol Walsh - 9 years ago

    There are many rules and regulations regarding the authority and responsibility of Assessors. It is NOT typical to reduce a property tax based on someone making a good "deal" with the seller. The rule of thumb is that property is taxed based on the community value and location. Sale price does not carry any significant impact on the valuation of the property, and buyers know what the value of the property is and what the tax rate is if they have done their homework. In my years in municipal government I have never seen an abatement on a property because the buyer made a great deal and purchase property below the valuation that is listed and is public knowledge. Many buyers have tried this concept with no luck. Old Town needs to stand firm.

Leave a Comment

0/4000 chars


Submit Comment