Irrigation water

From the 2024 DOR Tax Exemption Study

82.16.050(7) - Irrigation water Description Businesses may deduct income when derived from the distribution of water used for the purpose of irrigation. To qualify, the water must be distributed through an irrigation system, for irrigation purposes other than the irrigation of cannabis. Purpose To lower the cost of water for farming. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.240 $3.400 $3.560 $3.720 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.120 $3.560 $3.720 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the public utility taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic Revenue and Forecast Council, March 2023 forecast Additional Additional Information Information Category: Agriculture Year Enacted: 1935 Primary Beneficia