Legal analysis: The water conservancy construction funds that should be paid by units and individuals engaged in production and operation are collected by local tax authorities on a monthly or quarterly basis according to the tax payment period of value-added tax and business tax. The payer shall collect 0.6‰ of the income from production and operation, and declare and pay the water conservancy construction fund to the local tax authorities within 15 days from the due date. Among them, the provincial electric power company and its subordinate unified accounting unit pay in the location of its head office; Taxpayers' income from construction and installation services, transfer and lease of land use rights, and sale and lease of real estate in this province shall report and pay to the local tax authorities where the construction and installation services occur, where the land is located and where the real estate is located within the prescribed time limit.

Water conservancy fund is a special fund for water conservancy construction, which consists of central water conservancy construction fund and local water conservancy construction fund. The central water conservancy construction fund is mainly used for the maintenance and construction of major river key projects related to the overall situation of national economic and social development. Local water conservancy construction funds are mainly used for urban flood control and the management, maintenance and construction of small and medium-sized rivers and lakes. The management expenses of major water conservancy construction projects across river basins and provinces (autonomous regions and municipalities directly under the Central Government) and key protection projects of transnational rivers and border rivers in China shall be borne by the central and local governments.

Legal basis: People's Republic of China (PRC) Rural Revitalization Promotion Law Article 61 People's governments at all levels should adhere to the principle of taking it from agriculture and mainly using it for agriculture, adjust and improve the use scope of land use right transfer income in accordance with relevant state regulations, and increase the proportion of investment in agriculture and rural areas. It is mainly used for high-standard farmland construction, farmland water conservancy construction, modern seed industry upgrading, rural water supply guarantee, improvement of rural living environment, comprehensive improvement of rural land, protection of cultivated land and permanent basic farmland, construction and management of village public facilities, rural education, rural cultural and spiritual civilization construction expenditure, and ecological protection and restoration of mountains, rivers, forests, lakes, grasses and sands directly related to agriculture and rural areas and the construction of work-based relief projects.