REPUBLIC ACT NO. 10026 - TAX EXEMPTION TO LOCAL WATER DISTRICTS

>Local water districts are now exempt from income taxes under Section 27 provided that the amount saved by virtue of the exemption is to be used for capital equipment expenditure to expand water services coverage

>All unpaid taxes starting August 13, 1996 are condoned provided

(1) the BIR establishes financial incapacity of the LOCAL WATER DISTRICT and

(2) the LOCAL WATER DISTRICT submits to Congress a program of internal reforms.