Court: Town Must Refund Aquarion $126K

Rockingham Superior Court has ordered the town of Hampton to return over $126,000 in taxes collected from Aquarion Water Company.

Hampton had taxed Aquarion for its utilities in town-owned right-of-way in 2011 and 2012, although the court system has ruled that because there was no written agreement about that taxation that Hampton cannot keep the $126,493 collected during that time period, plus interest, Town Attorney Mark Gearreald told the Hampton Board of Selectmen this week.

Selectmen voted in April to amend all public utility agreements in order to tax the six local utility entities for their presence above or below ground in Hampton's rights-of-way. Gearreald said the court system has ruled the town can still tax Aquarion in this way in 2013 and beyond.

The court's decision was issued days before Aquarion's rate case hearing officially goes before the Public Utilities Commission in Concord. The PUC will evaluate the controversial proposal — — during sessions on Thursday and Friday, according to Gearreald.

Selectmen do have the ability to appeal the court's ruling on the 2011 and 2012 Aquarion taxes, although the board voted unanimously Monday against taking that action after hearing from Town Assessor Ed Tinker and others.

Gearreald and selectmen did say, though, that they will push to make sure the $126,493 is removed from Aquarion's rationale in their rate case hearing. Gearreald said the total represents an increase in taxes compared to previous years, and he said Aquarion has claimed the increase in those taxes is part of the reasoning behind its desired rate increase.