The city of Somersworth over-assessed three parcels belonging to Velcro USA Inc. by nearly $4 million, a superior court judge ruled recently.

But the decision will have no impact on the current tax rate in Somersworth, and city officials say the case worked out well. 
The city initially assessed the three properties on Route 108 at about $16.7 million, but adjusted that assessment to about $12.6 million two years later. After years of court proceedings, Strafford County Superior Court Judge Peter Fauver ruled the property should have been assessed at $12.8 million.

As a result, the city must refund Velcro USA for overpayments in 2004 and 2005, City Manager Bob Belmore said. He has not finalized the exact amount owed, but said it will be in the ballpark of $150,000, plus interest.

The city had anticipated the possibility of losing the court battle and had already set aside enough money to compensate the company, Belmore said. Because the re-assessment in 2006 was less than Fauver’s ruling, Velcro Inc. will owe the city approximately $4,500 for underpaying last year.

“The city on its own in this past tax year realized, based on some analysis we did, that $16 million was too high and we dropped it down to approximately $12.6 million,” Belmore said.

The city tried to settle out of court, but could not reach an agreement before the case went to trial. Velcro USA requested an assessment of slightly more than $8 million.

Although Fauver granted the abatement, Belmore called the ruling a win for the city. Velcro will have 30 days to appeal the decision.