Watershed and flood protection

From the 2024 DOR Tax Exemption Study

82.08.0271; 82.12.930 - Watershed and flood protection Description State and local government entities are exempt from sales and use taxes on tangible personal property consumed and labor and services rendered for watershed protection or flood prevention projects. The exemption is limited to the portion of the selling price that is reimbursable by the federal government under the Watershed Protection and Flood Prevention act. Purpose Support services on watershed protection and flood prevention. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.120 $0.120 $0.120 $0.120 Local Taxes $0.050 $0.050 $0.050 $0.050 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.110 $0.120 $0.120 Local Taxes $0.000 $0.050 $0.050 $0.050 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Appropriation amounts remain the same each year, therefore no annual growth factored. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Congress