Nearly year after shutdown Canton paper plant wants millions of dollars in taxes back
Nearly a year after shutting down and laying off more than 1,000 workers, the owner of Canton's former paper-making plant wants millions in local taxes returned.
Pactiv Evergreen, the Illinois-based owner of the paper mill site paid $2.8 million in 2023 property taxes to Haywood County and the town of Canton. But the company is now saying the property they own was overvalued by the county assessor's office and they should get back $2.5 million.
The Citizen Times reached out March 7 to Pactiv spokesperson Beth Kelly.
In seeking to reduce its taxes, the company first appealed to the county's Board of Equalization and Review but was denied. Pactiv is now appealing to the North Carolina Property Tax Commission. A commission spokesperson referred questions about pending dates to Haywood County officials.
County Tax Assessor Judy Hickman said there was no date yet scheduled. She said the tax values of $238 million for equipment and other property inside the mill plus the $19.8 million in real estate were determined Jan. 1, 2023. That was before the mill shut down May 24 of that year, ending a century of paper making operations in Canton.
The closure and layoffs caused economic and social shocks throughout the area.
"They are the biggest taxpayer in the county," Hickman said.
The attempt to reduce its local tax payments comes at the same time as a conflict between Pactiv and top state officials over $12 million in taxpayer incentives. The company received the help to update equipment. In exchange the plant was to maintain at least 800 employees. At the time of the incentives, employees were making an average annual salary of $78,300.
Gov. Roy Cooper and Attorney General Josh Stein, a Democrat running in the Nov. 5 gubernatorial race against Republican Lt. Gov. Mark Robinson, have said they are seeking to claw the money back and are in negotiations with Pactiv.
Canton Deputy Tax Collector Wanda Lurvey said it was difficult to say exactly what the impact would be on the town and its operations. "But, obviously, it would hurt us."
The county has a budget of $129 million with $59 million coming from property taxes, according to financial documents. One of the biggest pieces of that budget goes to public safety, including $8.7 million for sheriff's deputies pay and other department costs. It also spends $1.9 million on 911 emergency communications.
Canton has a $12 million budget with $3.4 million coming from property taxes. It spends $2.3 million on its police department and $1 million for its fire fighters.
Pactiv also drew the ire of officials when last year before announcing the closure, corporate officers declared they would pay a bonus to shareholders and sold more than $600,000 in stock. Then the price nosedived.
Republican Congressman Chuck Edwards, whose 11th District covers most of Western North Carolina, including Canton, called for a Securities and Exchange Commission investigation. It's not clear if the SEC has taken any action. Investigations by the regulatory body are done privately and only become known to the public with the filing of an enforcement action.
Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095 or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.
This article originally appeared on Asheville Citizen Times: 9 mo. after shutdown, Canton paper plant wants millions in taxes back
