Bill > HB1715

This bill proposes to limit increases in the assessed value of real property after a sale or transfer by amending Arkansas property tax law. Specifically, for the first assessment following a property sale, the assessed value would be capped at either 5% or 10% above the original taxable value, depending on the property's use. If the property is a taxpayer's primary residence (homestead), the increase would be limited to 5%; for non-homestead properties, the limit would be 10%. The bill defines "taxable value" as the property's assessed value for tax purposes at the time of sale. This legislation aims to provide some protection for property owners against significant property tax increases when real estate changes hands, with a particular focus on helping homeowners by implementing a lower assessment increase cap for primary residences. The new rules would take effect for assessment years beginning on or after January 1, 2026, giving local governments and property tax assessors time to prepare for the implementation of these new limits.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1715&ddBienniumSession=2025%2F2025R