HomeMy WebLinkAboutCOM 0813.012 1998-2000 ..�: •
VERIZON HAWAII
FAX MESSAGE TO FOLLOW:
OS /m110 TIME: 13:00 p.
( enolulu Standard time)
To: ICha; mnes Arakaki; Attn: Alfred
Company: !Hawaii County Council
Departmery Location:
Telephone: 7 961 - 8272 Fax: 961 -8912
Prom: ' _. Chai, Esq.
Address Location:
Telephone 7 (808) 546 -3868 (W) Fax Number: (808) 546 -8500
•
Special Inst •:`
Faxed herewith :c `!aa izon Hawaii's written testimony on Hawaii County Bill 276, Draft 2, scheduled to be
heard before :hr; '. Council on August 23, 2000. Verizon Hawaii will not be testifying in person, based
upon our under_... ,;,ing that the Corporation Counsel will be requesting a deferral, due to pending tax
settlement nego!::Ji ;rs.
Thank you.
0
O
C i cj _l:7
- ._4 ro
z
s ? to
N
Q7
Comm. No. ,� -
File No. Net
Ref. To:
AUG 2 2 2000
100'd 0011 9?S 808 131 ANOIVif103N NO21213 OrP1'? uu ac 0111'
•
•
• •
BILL 276 Draft 2,
AN Ot D:,r.!ANCE AMENDING CHAPTER 19, OF THE HAWAII COUNTY CODE
18� (1995 EDITION), RELATING TO REAL PROPERTY TAXES
BY
BLANE YOKOTA
CORPORATE COUNSEL
FOR
VERIZON HAWAII
AUGUST 23, 2000
Good morning Chair Arakaki and Members of the Hawaii County Council.
I am Biina 'rokota, Corporate Counsel testifying on behalf of Verizon Hawaii
( "Verizon) l:rrnerly known as GTE Hawaiian Tel. Thank you for the opportunity
to testify regarding Bill No. 276 (Draft 2), "AN ORDINANCE AMENDING
CHAPTER. 19, OF THE HAWAII COUNTY CODE 1983 (1995 EDITION),
RELATING TO REAL PROPERTY TAXES." With all due respect to the Council, •
Verizon strongly opposes Bill 276 (Draft 2) and urges the Committee to hold this
bill for the (: reasons:
('I) Bill 276 (Draft 2) is unconstitutional in that notwithstanding the
Council's efforts to address this issue through amended language,
it still attempts to exercise taxing powers with respect to personal
property and other non -real property assets of public utilities;
(2) Efforts by the County to directly tax the real property of public
utilities will result in double taxation;
(3) The fact that this Committee is even considering Bill 276 (Draft 2)
demonstrates the inherent difficulty in directly assessing and
administering a real property tax on public utilities; and
(4) Evan assuming, that the constitutional and administrative difficulties
can he overcome, any increase in taxation revenues resulting from
county taxation of public utilities will ultimately be passed on to the
Customers of utilities in the form of higher utility bills.
:00'd OOh9 9tc 808131: ANO1:E1f193N NOZIN3r1 1 :t1 (3111)00 9i1F
•
( Verizon began paying a portion of its PSC tax under protest on •
August 10, 2000. On that same day Verizon filed a complaint
against the Department of Taxation asserting the double taxation
dilemma which faces Verizon and ultimately its customers. As
Verizon explained when it testified against Bill 276 before the
Finance Committee on August 8, 2000, in conjunction with Helco
and Gasco, it has worked with the Tax Appeal court to arrange a
global settlement conference including the County of Hawaii and
the State. I am pleased to inform the Council that the initial
settlement conference took place last week Thursday, August 17`".
With the assistance of Judge Chang and as a result of the
cooperation among counsel for all of the parties, a basic framework
for resolving the ongoing dispute was developed and the
conference concluded with all counsel representing to Judge
Chang that they would recommend acceptance of that framework
by their respective clients. One of the specific conditions of the
framework was that further action on Bill 276 (Draft 2) would be
deferred until November so that the parties could continue to work
toward a global settlement. Accordingly, based on the rapid and
positive developments in fashioning an overall settlement of the
real property tax dispute, Verizon once again asks that the Council
defer further action on Bill 276 (Draft 2) until November of this year.
It is Verizon's intent to continue to work towards a global settlement
within the next few months.
Th ,* you again for the opportunity to provide testimony on this matter.
900 001'9 9h2 808:131 A2101\1f10321 11021213:1 ib hl 1311/100 ,tE -'011V