Bill > HB1687

This bill amends Arkansas law to expand tax exemptions for water authorities. Specifically, the legislation broadens existing tax exemptions by clarifying that all property of a water authority is considered public property used exclusively for public purposes and shall be exempt from ad valorem (property) taxation by all taxing authorities. Moreover, the bill introduces a new provision that explicitly exempts water authorities from all excise taxes of any kind or nature. The tax exemption will take effect on the first day of the calendar quarter following the act's effective date. This change appears designed to provide water authorities with comprehensive tax relief, potentially reducing their operational costs and allowing them to allocate more resources to water infrastructure and services. The bill modifies Arkansas Code § 4-35-108 to achieve these expanded tax exemptions for water authorities formed under the relevant chapter of state law.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1687&ddBienniumSession=2025%2F2025R