J. M. Wyger

The appellant appealed the property tax assessments for its pulp and paper mill for the 2009-2012 taxation years.

The central issue was determining the current value of the large industrial portion of the property using the cost approach.

The appellant argued for a model approach based on a modern, efficient mill to isolate functional obsolescence, while the respondent used a rationalization approach based on the existing structures.

The Board preferred the appellant's model approach, finding it better captured the functional obsolescence of the aging, disjointed facility.

The Board also determined that an external obsolescence allowance of 53.5% was appropriate due to the industry's economic challenges and the mill's excess operating costs compared to industry norms.

The assessment was reduced accordingly.