Press Releases...

2007

Watson Passes Bill to Protect Rural Water Districts

Springfield, IL …The Illinois House of Representatives unanimously passed legislation today proposed by State Representative Jim Watson (R-Jacksonville) to level the playing field for co-op water communities in Illinois by providing them with the same tax exemptions currently offered to municipalities.  

“HB 403 will help expand the service of clean and potable water for rural communities,” said Watson.  “Currently, co-ops, unlike municipalities, are charged sales tax on the construction, maintenance, and operation of equipment for public water supplies.  HB 403 makes co-ops tax exempt and rectifies the inconsistencies in the laws that govern public water supplies for both municipalities and co-ops.”

In Illinois, water and sewer utilities tend to be the most publicly owned utility.  Of the 1,782 public water suppliers and 808 public sanitary sewage systems with treatment facilities within the state, only 31 water, 4 sewer, and 13 combined water and sewer utilities are investor owned.  Privately owned utilities, or co-ops provide water for approximately 1.2 million people and sewer service to 127,000 people.  

“In downstate Illinois, we have a number of rural communities that need potable water,” said Watson.  “This legislation will make it more affordable and practical to get clean water to these people.” 

HB 403 now moves to the Senate for further consideration.