$700K in property tax refunds due after N.B. retracts assessment increases on 2 forestry mills
CBC
J.D. Irving Ltd's paper mill in east Saint John and Twin Rivers pulp mill in Edmundston have qualified for up to $700,000 in property tax refunds covering the last two years, after Service New Brunswick reversed itself on assessment increases it gave the two mills in 2021.
Saint John City Councillor Gerry Lowe said he is stunned to hear about the reductions because the original 2021 assessment increases on the mills appeared bulletproof given the multi-year review Service New Brunswick launched to analyze and implement them.
"How could they put it up and say they did a complete study and then turn around two years later and knock it down," said Lowe.
"It's off the wall how they do things."
Anne McInerney, J.D. Irving Ltd.'s vice president, communications, said in an email the company challenged the 2021 assessment of $27 million given to the paper mill soon after receiving it. The amount was $3.7 million (16 per cent) higher than the 2020 assessment.
With a decision on that dispute still pending, the company then challenged the mill's 2022 assessment which Service New Brunswick had issued in the meantime for $27.3 million, a one per cent increase from the 2021 amount.
Twin Rivers Paper Company followed a similar pattern with assessment increases it got at the same time on its pulp mill.
Sometime earlier this year, Service New Brunswick informed both companies their challenges had been successful. In Irving's case, the agency lowered the assessment on the mill by $3.5 million in each of the two years in dispute. The reduction for Twin Rivers is closer to $4 million per year.
It is the right decision, according to McInerney.
The review "was successful given economic challenges in the paper industry, including consumers' growing reliance on screens over paper," she said.
Caryn King, the director of strategic marketing with Twin Rivers, agreed.
"We concluded that it merited an appeal and we availed ourselves of one through Service New Brunswick, as any ratepayer is permitted to request," said King in an email.
"We agree with Service NB's determination that our property should be assessed at a lower value."
The lower assessments require property tax refunds to J.D. Irving Ltd of about $170,000 of what was billed on the mill for the 2021 year and $165,000 for 2022. The refund for Twin Rivers is closer to something over $180,000 for each year.