OLD TOWN — A lawsuit over taxes paid for a pulp mill in Old Town five years ago is going to the state’s highest court.
Wisconsin-based Expera Specialty Solutions filed the original tax abatement request in 2015.
The company purchased the mill for $10.4 million and after operating it for a year sold it to a liquidator for $2.5 million.
In 2015, the city assessed the mill property at $30 million and at $25 million the following year.
“The city of Old Town was assessing the mill at two and three times what the company had paid for it and 10 times what they had sold it for a year later,” said Jonathan Block, an attorney representing Expera.
Superior Court Justice William Anderson recently issued a ruling in Expera’s favor and the city filed paperwork this week to appeal his decision to the Maine Supreme Judicial Court.
An Old Town official said Tuesday no matter the outcome of the lawsuit, residents are not expected to see a tax increase.
Block said he expects a decision sometime in the coming year.
The mill is now owned and being operated by Nine Dragons Paper.