HomeMy WebLinkAboutBIL 276 Draft 01 1998-2000
COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 2 7 6
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19, OF THE HAWAII COUNTY CODE 1983
(1995 EDITION), RELATING TO REAL PROPERTY TAXES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The County Council deleted the public utilities tax exemptions in Ordinance
No. 99-159. The County has been pursuing revenues from the State that are collected by the
State through the public service company tax, a portion of which is collected based on the
language of the statute, collected in lieu of real property taxes. The State's position is that the real
property tax portions of the public service company tax are repealed and the County had no
standing since it had never attempted to tax the utilities. In order to tax the utilities in an orderly
and equitable fashion, the following method of valuation should be followed.
SECTION 2. Chapter 19, article 7, of the Hawaii County Code 1983 (1995 Edition), is
amended by adding a new section to read as follows:
"Section 19-53.1. Valuation of public utilities.
~ Notwithstanding_any section to the contrary, the director of finance, in determining the
market value assessment of the property of the public utilities, may use the values as set
forth in the annual financial reports of the public utilities as filed with the Public Utilities
Commission pursuant to chapter 269 Hawaii Revised Statutes as the basis for his
assessment which shall be deemed~rima facie correct. Due to the unique nature of the
public utility and its equipment assignment of values to individual tax map keys is not
required.
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For the purposes of this section, the following definitions are also adopted:
Public utilities. Public utilities are as defined in section 269-1, Hawaii Revised
Statutes.
Outside plant. Outside plant is public utility real property. predominantly
production, transmission, collection, switching, and distribution facilities, that may
consist of one or more of the following:
Units that have Qhysical and functional characteristics that are so similar
that they are accounted for as a group or class and are eg nerally installed
on easements.
Transmission cable, wire or pines, including support or conduit structures.
Substation equipment.
Measurin ag nd re ug lating_equipment.
Generation equipment.
Storage equipment.
Switching equipment.
Plant Structures. Public utility real property improvements that are not outside
plant such as buildings generating stations, production plants, ag s compressor
stations boilers switching~lants dams and reservoirs, circuit equipment, radio
systems terminals satellite facilities, storage, wells, pumping facilities, and
including those items which are included in the outside plant definition above.
Propert~Property is the same as defined in section 19-53, Hawaii County Code.
~ Valuations are determined as follows:
Land Land values are determined bathe market value approach in accordance
with section 19-53, Hawaii Count~e.
Public utility real property_generallydassed as outside plant, as set forth in section
19-53 1(b)(2) including but not limited to production, transmission, collection,
switching or distribution substation equipment or measuring, re u~latin~,
generation storage or switching_equinment or improved property is appraised on
the basis of its reproduction cost new less allowances for physical depreciation,
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functional obsolescence and economic obsolescence, if any. The reproduction cost
new is determined bLr multiplyin~ reported inventory original cost b~ppropriate
price indices and/or by multipl ing~hysical inventories by appropriate unit prices.
The rate of depreciation is a function of the appraised property's age estimated
service life and salvage factor. Such determinations and assessments of fair
market value shall be made, to the extent possible, in accordance with the annual
financial reports as filed with the Public Utilities Commission pursuant to
chapter 269 Hawaii Revised Statutes which shall be deemed prima facie correct.
For all lands of public utilities not categorized by section 19-53(a), Hawaii County
Code said improvements shall be taxed at a rate assigned to the industrial
classification.
Plant Structure. The value of imQrovements that are plant or structure as set
forth in section 19-53.1(b)(3), including but not limited to, buildings=~eneratin~
stations ag s compressor stations switchingplants, dams and reservoirs, circuit
equipment radio systems terminals satellite facilities, storage, wells, and pumnin~
stations is determined using the same methodology as is used in appraising outside
plant properties.
For the purpose of liens and foreclosure any outside plant property shall be
considered apart of any system or plant to which it is a part of and to which a tax
maQkey has been assigned."
SECTION 3. Material to be repealed is bracketed. New material is underscored.
In printing this ordinance, the brackets, bracketed material and underscoring need not be
included.
SECTION 4. If any provision of this ordinance, or the application thereof to any
person or circumstance, is held invalid, such invalidity shall not affect other provisions or
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applications of the ordinance which can be given effect without the invalid provision or
application, and to this end, the provisions of this ordinance are declared to be severable.
SECTION 5. This ordinance shall be retroactive to January 1, 2000.
IlVTRODUCED BY:
COUNCIL MEMBER, C LINTY OF HAWAII
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
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