Tap Fees Imposed by Special Districts
Summary
A tap fee is a fee that is paid by a developer or property owner in order to connect a property to a public water or sewer system. State law allows the board (board) of any sanitation district, water and sanitation district, or water district to impose and set the amount of a tap fee. The act states that a board of a water and sanitation district or a water district (district) has a duty to provide water service if the district has the capacity to do so, with certain exceptions. The act also requires a board of a district, in determining the amount of a tap fee, to: Ensure that the amount of the tap fee is reasonably related to the costs incurred by the district in providing water service, which may include certain costs and do not include certain other costs; and Take into consideration at least one of the following factors in supporting the calculation and setting of proportional or reduced fees: Expected long-term water usage, both indoor and outdoor, including the existence of nonnative turf grass and use of water-wise landscaping, with an emphasis on native plants; The square footage of the unit or the number of bedrooms in the unit; The presence of low-water-usage appliances, if applicable; Per-unit fixture counts in bathrooms, kitchens, and other spaces, interior and exterior, that provide water or sanitation service; and The presence of graywater treatment works, as may be authorized within the district boundaries.(Note: This summary applies to this bill as enacted.)
Bill status
signed
all 5 stages cleared
Introduction
Feb 2025
Committee Review
Apr 2025
House Passage
Mar 2025
Senate Passage
Apr 2025
Signed into Law
May 2025
Introduced Feb 11, 2025
Signed May 9, 2025
Maddy AI version diff · 6 comparisons
What changed between versions
Revised (04/11/2025)
→
PA2 (04/09/2025)
·
3 edits
MINOR
The bill was amended to add new factors that special districts must consider when calculating tap fees. These include low-water-usage appliances, fixture counts in bathrooms and kitchens, and graywater treatment systems. This change expands the criteria for fee assessment to better reflect water conservation efforts and infrastructure investments.
Scope change
The bill's scope remains focused on water service provision by special districts, but the applicability of fee calculations has expanded to include additional water usage and conservation factors.
REQUIREMENT
Added requirement to consider low-water-usage appliances when calculating tap fees
Added requirement to consider per-unit fixture counts in bathrooms, kitchens, and other water/sanitation spaces
Added requirement to consider the presence of graywater treatment works as defined in existing state law
Floor votes · Senate Apr 14, 2025 · House Mar 17, 2025
How they voted
26–6
Passed · 2 other
Total votes 34
Apr 14, 2025
D
Democratic22
95% Yea
R
Republican12
41% Nay
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
14
Key actions
5
Committee
2
Amendments
1
May 9, 2025
Signed into law
Governor Signed
executive
Apr 15, 2025
Introduced
House Considered Senate Amendments - Result was to Concur - Repass
lower
Apr 14, 2025
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
Apr 9, 2025
Upper · Passed
Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
upper
Apr 3, 2025
Introduced
Introduced In Senate - Assigned to Local Government & Housing
upper
Mar 17, 2025
Lower · Passed
House Third Reading Passed - No Amendments
lower
Feb 26, 2025
Lower · Passed
House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
lower
Feb 11, 2025
Introduced
Introduced In House - Assigned to Transportation, Housing & Local Government
lower
4 primary · 6 co-sponsors
Sponsors
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