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Harryl<im William Taknba
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July 19, 2005
Honorable Stacy K. Higa, Chairman and ,
Members of the Hawaii County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Compromising Real Property Taxes for the California Institute of Technology
The California Association for Research in Astronomy ("CARA") is snot-for-profit
corporation that operates the W.M. Keck Observatory in Kamuela. In June 2001, CARA
purchased aone-half acre parcel, TMK: (3) 6-5-004-057, adjacent to the W.M. Keck
Observatory to help settle a community concern over the proposed uses of this parcel.
Although this parcel would have qualified for an exemption from real property taxes
except for the minimum tax, it was being taxed without the exemption since no
application was filed with the Real Property Tax Division by the parcel's legal owner, the
California Institute of Technology ("Caltech"). Caltech is one of the parent organizations
of CARA.
Since all property tax bills were being sent to the Caltech headquarters in Pasadena,
California, the Director of CARA states that he was unaware that the parcel was not
receiving a tax exemption and that its property taxes were not being paid. Upon
discovering this, he immediately arranged to pay its delinquent taxes.
The Director of CARA has requested that the County approve the parcel's tax exempt
status as of June 2001, refund the resulting overpayment in taxes for the 2001-02 to
2004-05 tax years, and adjust its property tax bill for the 2005-06 tax year.
Enclosed is a resolution authorizing the Director of Finance to compromise the sum of
$15,630.00, being the amount of taxes owed on the parcel identified as TMK: (3) 6-5-
004-057 less the minimum tax for the 2001-02 to 2005-06 tax years. The adoption of this
resolution will enable the Director of Finance to approve all three of the above requests.
Comm. No. 3 ~
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Hawan County is an Equal OppoRunity Provider and Emp/oyer
Honorable Stacy K. Higa
And Members of the Hawaii County Council
Page 2
July 19, 2005
Should you have any questions, I will be happy to discuss them with you. Thank you.
- -
William Tak ba
Director of Finance
APPROVED:
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Harry Kim
Mayor
Enc.