Bill > HB1386

This bill amends Arkansas property assessment laws by introducing several key changes. First, it defines "substantial improvement" as an enhancement to real property that increases its assessed value by at least 25%, with an exception for necessary repairs after a natural disaster (unless those repairs use higher-quality materials). The bill also modifies the Assessment Coordination Division's rule-making authority regarding property improvement definitions. Additionally, the bill establishes new guidelines for determining property value, specifying that residential property valuation should only consider real property located within the state, while commercial property valuation can include out-of-state properties only if no comparable in-state properties exist. These changes aim to provide more precise rules for property assessment and valuation, potentially affecting how property taxes are calculated. The provisions will become effective for assessment years beginning on or after January 1, 2025, giving local authorities and property owners time to prepare for the new assessment guidelines.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1386&ddBienniumSession=2025%2F2025R