HomeMy WebLinkAboutCOM 0813.015 1998-2000
Stephen K. Yamashiro Richard Wurdeman
Mayor Corporation Coumel
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OFFICE OF THE CORPORATION COUNSEL
101 Aupuni Street, Suite 325 - Hilo, Hawaii 96720.4262 - (808) 961-8251 - Fax (808) 961-8622 "
September 5, 2000
James Y. Arakaki, Chairman
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Dear Chairman Arakaki:
Re: Bill 276. Draft 3
I am pleased to forward amended Draft 3 of Bill 276 to the Council. Because of the substantial
changes involved, we would like it to be introduced and then tabled until the September 20, 2000 full
council meeting for action.
The amendments contained in Draft 3 are the addition of subsection (d) which relates to an
alternative method of assessing real property taxes. This portion has been drafted with the assistance of
the utilities. Through settlement negotiations with the State of Hawaii, the public utilities and the other
counties, a tentative settlement has been reached which would reduce the State's public service company
tax from its current 5.885% to 4%. In turn, the counties will be allowed to collect that portion of the old
public service company tax over 4%, which represented collections in lieu of real property taxes.
The counties will agree to accept the gross income values as filed with the State in the public
utilities' payment of their public service company tax. As part of the settlement, the State will reduce the
public service company tax and introduce legislation to allow the counties to collect real property taxes
from the utilities based on a percentage (1.885%-4.2%) of their gross income.
The Mayor and I have indicated to the utilities that Draft 3 would be introduced on September 7,
2000, but tabled until September 20, 2000 for final action, with the understanding that there will be no
lobbying efforts by the utilities during that time period.
Sincerely,
RICHARD D. WURDEMAN
Corporation Counsel
BY aA4C ,
GE D TAKASE
Deputy Corporation Counsel
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cc:\kamikawa\ltrcounci Idraft3. wpd
APPROVED: Comm. No. 613. 016
/ I File No. /7CC/RPT
STEPHEN K. AMASHIRO Ref. To: C-CEC /
Mayor l
Si'// A74, Ref. Date S' 0 6 2000