HomeMy WebLinkAboutCOM 0480.002 1998-2000
SENT BY K.a7fEHa11EHa I\1'EST. ~11-30-99 ~l0 15.x11 ~ Ka1fEH.a61EH.a INVEST.- 9618912:.':' 2' 2
KCAUIIOCI CO'v1'vIL'NI"1'Y" S1rKV1CL5, INC.
November 30, 1999
Ma James Arakaki, Chairman
County Council ~,,,R( ~
wy~ ~
County of Hawaii
25 Aupuni Street ~"'o h ~~L:__V~
- Hilo, Hi. 9G720 +;;aunty Council ,
Dear Mr. Arakaki:
Re: Opposition to as ordinance amending Chapter 19 of the Hawaii County
Code 1983(1995 Edition), relating to real property taxes (Bill 143)
Keauhou Community Services, Inc. (KCSI) is a private regulated public utility
company which provides wastewater services to costumers in the Keauhou area of
Kona.
As a public service company, KCSI is subject to and pays a public service company
tax to the State of Hawaii under Chapter 239, Hawaii Revised Statutes in lieu of
real property taxes. The provisions of Chapter 239 exempts public service
companies which pay the public service company tax from paying real property
taxes.
We understand that the proposed Bill 143 seeks [o delete the real property tax
exemption which public service companies such as KCSI now enjoy under State law.
The removal of the real property tax exemption for public service companies such
as KCSI would subject this group to an unnecessary additional layer of taxes whose
impact will not be iuconseyuential on those companies subject to Chapter 239, and
would be perecivcd as a doubling up on the real prvperty taxes.
H'c are informed that the County has sued the State to recover the real property tax
portion of the public service company tax. We support this effort. We urge you to
continue your effort to obtain satisfaction through the courts.
In light of the foregoing, we urge the County Council to withdraw its support for
passage of Bill 143.
Rea ec ally submit ,
i,, ~ '~80 , oo
Jo . Spe II ~ ~mm. No.
Vice President Ille No. 14CC~RPT'
Ref. To:~~~ CouNC,~
Ref. Date 1 1999
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