11/29/2012 12:13 EST | Updated 01/29/2013 05:12 EST

Nova Scotia legislation would reduce Cape Breton mill's municipal tax bill

HALIFAX - An agreement between Richmond County and a paper mill in Port Hawkesbury to reduce the operation's municipal taxes is being written into law by the Nova Scotia government.

Municipal Relations Minister John MacDonell says amendments to the Stora Enso Taxation Act would see taxes paid by the mill remain at $2.6 million for 2012-13, with former owner NewPage and Port Hawkesbury Paper Group Ltd. each paying $1.3 million.

MacDonell says Port Hawkesbury Paper would then pay $1.3 million in taxes for three years, beginning on April 1.

The legislation which was tabled at the request of the municipality, would expire on March 31, 2016.

The tax deal was reached following a court battle between the mill's owner and the municipality.

In a ruling in September, a Nova Scotia Supreme Court judge rejected a bid by the mill to cancel the previous tax deal.