Opinion No.

The Honorable David C. Hausam State Representative 1302 Quail Run Circle Bentonville, AR 72712-4175

Dear Representative Hausam:

I am writing in response to your request for my opinion regarding certain issues arising from the enactment of Act 115 of 2001, which provides for the conversion of any qualified nonprofit corporation supplying water services to customers into a newly created public entity known as a "water authority." Specifically, you have asked me to address the following two questions:

1. Are public water authorities exempt from the payment of sales taxes in connection with their…