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Home My WebLink AboutCOM 0480.010 1998-2000 Testimony before the County Council County of Hawaii Received December 15, 1999 Tlme_-.-- ~Y..-- i/;: , , pate--_ County CounGl by Warren Lee President, Hawaii Electric Light Company, Inc. Regarding Ordinance Bill No. 143 Amending Chapter 19 of the Hawaii County Code 1983 (1995 Edition), Relating to Real Property Tax Exemptions Chairman Arakaki and members of the Council: Good morning. My name is Warren Lee. I am president of Hawaii Electric Light Company, one of the utilities that would be adversely affected by Bill 143. This bill seeks to remove the real property tax exemption for utilities serving the County of Hawaii. Hawaii Electric Light Company opposes this measure because it will result in double taxation for utilities such as HELCO and result in higher rates for residents and businesses that are our customers. It has been explained to us that one of the intents of the measure is to strengthen the County's legal case against the state, in an effort to compel the state to share a portion of the public service company tax. We do not believe this bill will have that effect and may in fact weaken the County's argument significantly. If the County begins to impose real property taxes on the utilities, the state's case, in effect, is strengthened. Their argument becomes -the County is not entitled to a portion of the PSC, because it is already collecting real property taxes from the utilities by removing the exemption. We have supported the Counties in their efforts to achieve a sharing of the PSC. We wish to continue this effort. But this bill as presently drafted may make that impossible. Comm. No. T • ~ 10 F9le No. Nce/RPr Ref. To: Presented C9UNGll Ref. Date DEC 15 1999 The impact of this proposed tax increase will impact our residents and customers who will least be able to afford it. This bill would levy new taxes on utility services basic to daily living -electricity, gas, telephone, water and sewer. This is not a tax on something that is "nice to have' -these are essential services. This has been underscored time and again in a natural disaster -these are the services we all scramble to re-establish first. We understand and sympathize with the difficult financial position faced by the county and state governments. But placing the burden of Bill 143 as currently drafted on utility customers is not a solution. This tax increase will also impact the cost of doing business in the County and impact the cost of products and services available to guests and residents. In short, it makes our County less competitive when compared to the other counties. The tax burden in customers' utility bills is already very high. I have attached a chart showing the taxes that are currently part of a HELCO customer's bill. Over the last five years HELCO customers have paid more than $99 million in various taxes included in their bills. I recognize that not all of this goes to the County of Hawaii, but the tax burden is significant nevertheless. There must be a better solution to resolve the County's differences with the state than imposing new taxes on Big Island consumers. In summary, I urge you to table this measure in favor of further discussion to resolve this matter. We will continue to support your efforts to resolve your differences with the state in an equitable manner that does not further increase the tax burden on our customers. Thank you for the opportunity to offer our testimony on this matter. rl'~ m mIm ~NI,~ ~ O 'O N,~pi''Oi'rn j~,~i M ' ~ I riM,tp N.N Ir 'O O '~7 ~O I~.W (D O _M O I ~ ~ V M ` ~ N N ~ i Ili O O O'M'~ir O O~ N ap 'O',N O MO0 I4)v'r V ~ ~ ' ~ ~ O N'.T O O N ~ '~cr01M ~ V ~ O ml~ M ' ' Irn of r' v N I I ',O'O O mlr ~IW OO' M ! '.N O a~.V cO!M x101 7 ' r,O ~ (00IN O ~ 011 ~ r 'N I~ O,O V 10 M N~' ' Q7 rlr t0 '.r r (O O01 N I O o'r r SIN N r, V ' Q) C7 ~ I In i, N 00o((pplr~,~oo v ' O O 001 (O IN OO a0 '.N ' N Op,(0 OIL (O N 10 O 1, 3 ' V MAN N III Q) N r OMi V W "1n 110 0 (MO V m O C m OI(p~M SIN N ~ G7 (O jli W, IQ'I CO ~ i x1 Iy r'v',v lro l~loi~oiio'. o rloJl~ (O'N ~O'.M NI r ~ OI (OINiV N'V Q'r'i0 N y mIN'. ~01'N N.Q ~N'i r b N IV !~iN'N!(0 M'fD. N ~ N'101~ N'O'N 00 r ISO r 'oi' ~ vi m p1 l4 X U f Z 10 O10 m O ~010'O N 10 O10'r i0 NIO'O (D ISO ~ (p r ~~'h O ~ O lO lr'N O.a)',GD O GO N ~ U (0 O (MON r O ~~m MTV a00 Ni V (O N ~'V N XI ~ ` O 2 = " N (0 w 0 0 o o ~o 'o ~~o o~ T' . .m a J ~ ~ io'I~~.v v v oQ M x- mm',3~ aNi U ~ ~ O,N cD T OI (6 ? ? N (0 U7Iw aa~'1c x~,x ~ V v° I Em1O~mmp- Ip IO F-IF-I=' W c m 10c. x,F. IU d cn'U ~l y' o'. W a ~ E uZil'.x10.lojo'w'w'~'a'Ia _ x m E °c~ «N.. .N. J XNNw XLL OU 'iC ~e IN Ni(O,NOCC Q m YO ~ L N 0 0 0 I, ~ J U~ I V U l N N~ 7 O ~jQ ~N4-O'N.N QI I~OO ~.N NI CCy00 5 J ai j ~,v w'm!~°ia°i Ip'' ~ ao L t NIINim E E a,a'.LLic9'~'Ir-1~n al 'IC'I a ui UU C7 C910~~,Q Q = Q .-,N M Q 10!~'r lNl N (")I~I~O IfO,r CO ~ ~