TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES.

Fiscal Impact Statement Bill: HB1687 Bill Subtitle: TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. K. Moore and Sen. Hester Basic Change: HB1687 amends the Water Authority Act to expand certain tax exemptions available to eligible water authorities. Under current law, each project by a water authority and all income from each project is exempt from ad valorem taxation. HB1687 expands the exemption so that a water authority is exempt from ad valorem taxation on all of its property and income from each project, and is additionally exempt from all excise taxes. HB1687 is effective on the first day of the calendar quarter following the effective date of the act. Fiscal Impact: FY2026 Total Approximate State Sales and Use Tax Loss -$13,650,000 (Estimated Effective Date 10/1/2025 --- 8 months reduced tax collection) General Revenue - 4.5% -$9,166,500 Property Tax Relief - .5% -$1,018,500 Conservation Fund - .125% -$254,625 Educational Adequacy Fund - .875% -$1,782,375 Highway Fund - .5% -$1,050,000 Educational Excellenc