HomeMy WebLinkAboutCOM 0813.018 1998-2000
THE GAS COMPANY_~
Citizens Energy Services
. r I R[C;F.IVED
September 20, 2000 Oal - I~Z) _
- -
County :ouncil
Chair James Y. Arakaki
and County Council Members
Hawaii County Council
25 Aupum Street
Hilo, Hawaii 96720
Dear Chair Arakaki and County Council Members:
Re: Bill 276 (Draft 3). Relating to Real Property Tax
Thank you for allowing The Gas Company the opportunity to provide comments on Bill
276 (Draft 3), relating to real property taxes.
I am pleased to report that the draft settlement agreement between the county, the State
and the utilities is moving forward rapidly and we are still extremely optimistic about
getting a settlement agreement in the near future. In summary, under the agreement the
State would reduce the Public Service Company (PSC) tax from 5.885% to 4% and the
counties would, in total, receive the 1.885% difference as their real property tax. The
Gas Company believes that, in principal, this agreement is a fair and efficient method of
addressing the counties' real property taxing authority and is fully supportive of all efforts
being made by the parties to allow such a settlement to happen.
In light of the progress that has been made, The Gas Company respectfully requests that
action on Bill 276 (Draft 3) be deferred pending finalization of the settlement agreement.
As we have testified in the past on Bill 276, and especially in light of the pending
settlement, we must again raise our opposition to the enactment of a new utility real
property taxation valuation methodology contained in this bill. If a settlement is reached,
the new valuation methodology becomes unnecessary.
In summary, we recommend that Bill 276 (Draft 3) be held to facilitate the State, the
counties and the utilities to continue to work together to resolve this long standing issue
to ensure that (1) the counties obtain the revenue due under their real property taxing
authority, and (2) the utility consumers on the Island of Hawaii are not burdened with
higher utility rates.
8~.?!• 0~8
Comm. No.
File No.
Ref. To: A ccun y l
~p 20 20 -
Bef. Date
Chair James Y. Arakaki
and Members of the Council
September 20, 2000
Page 2
Thank you again for the opportunity to provide comments on Bill 276 (Draft 3). If you
have any questions concerning this letter, please contact me at 808-535-5913.
Sincerely,
Steven P. Golden
Manager Government
Affairs & Planning