COM 0104.000 2000-2002 - Laserfiche WebLink

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HONOLULU, MAUI, or KAUAI) shall mean and be deemed to include that governmental entity and Its predecessors, successors, and assignees; and its past, present, and future executives, officers, agents, representatives, employees, divisions, departments, directors of departments (including related to taxation), agencies and suthonties, and all persons and entities claiming by, through or under any of them However, notwithstanding the inclusion of the term "divisions" in the preceding sentence, reference in this Agreement to "STATE" shall not be taken to refer also to the Parties which are counties of the State of Hawaii, i e., HAWAII COUNTY, HONOLULU, MAUI, OR KAUAI. When the counties are intended to be included in a particular provision or portion of this Agreement, each county will be expressly named, or the collective term "counties" will be used 2. No Admission of Liability The Parties understand and agree that this Agreement is in wmpromise of disputed claims and to avoid the costs and burdens of litigation and is not intended to be and shall not be deemed, construed, or treated In any respect as an admission of fault or liability as to any allegation or claim by any person or entity for any purpose. 3. No Admission Regarding Tax Laws. The Parties understand and agree that this Agreement is in compromise of disputed croons and to avoid the costs and burdens of litigation and Is not intended to be and shall not be deemed, construed, or treated in any respect as an admission regarding the validity, invalidity, or nature of the Public Service Company tax 4 No Expansion Of Counties' TaxingPower Or Lunitation Of STATE's Taxing Powers. Furthermore, no part of this Agreement shall be construed to expand the taxing authonty of the counties or to limit the exercrse of the STATE's power to enact laws of statewide concern. Nothing herein shall be interpreted or applied in a manner that is contrary to Article VII, § 1 of The Constitution of the State of Hawaii, which states that "The power of taxation shall never be surrendered, suspended or contracted away " 5 The Counties Shall Receive A Portion Of The Public Sernce Company Tax Revenues a. The parties hereby decide and agree that, under the terms and conditions set forth in the draft legislation attached as Exhibit A hereto, the portion of the revenues generated from the Public Service Company ("PSC'~ Tax in excess of four percent of the gross income of each public utility from its public utility business will be paid beguuing July 2001 under Hawaii Revised Statutes ("JiRS") §239-5(a) by each public utility directly to the counties that (I) provide by ordinance for a real property tax exemption for real property used by a public utility in its publrc uttllty business and owned by the public utility (or leased to it by a lease under which the public utlllty is required to pay the taxes upon the property), and (ri) have not domed the exemption to the public utlllty (but excluding a demal based upon a dispute as to the ownership, lease, or use of a specific parcel of real property) Accordingly, the parties hereby decide and agree that the PSC Tax statutes shall be amended and admimstered consistent with the terms and conditions set forth In the draft legislation attached as Exhibit A hereto. AGREEMENT PAGE2 IMANHONO 339853 1