Bill > HB1775

This bill addresses the assessment and valuation of accessory dwelling units (ADUs) for property tax purposes in Arkansas. Specifically, the legislation prohibits local tax assessors from creating separate parcels or conducting separate valuations for accessory dwelling units that are part of a residential property. An accessory dwelling unit is defined as a secondary, smaller dwelling located on the same parcel as the primary single-family residence and owned by the same person. Under this bill, residential property with an ADU must be valued and assessed as a single parcel, regardless of the presence of the secondary unit. The new valuation method will take effect for property tax assessment years beginning on or after January 1, 2026, which gives local governments and property owners time to adjust to the new regulations. The goal appears to be preventing property owners from being taxed at a higher rate due to the addition of an accessory dwelling unit and simplifying the property assessment process.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1775&ddBienniumSession=2025%2F2025R