Bill > HB1809

This bill expands the definition of "homestead" for property tax exemptions for disabled veterans to include properties owned through certain trust and limited liability company (LLC) arrangements. Specifically, the bill allows a homestead tax exemption for dwellings and contiguous property owned by: (1) a revocable trust formed by the disabled veteran, (2) an irrevocable trust where the disabled veteran is a beneficiary, or (3) an LLC with only the disabled veteran (or the veteran and spouse) as members. To claim the exemption under the new trust or LLC provisions, veterans must provide additional documentation to the county collector, such as a notarized copy of the irrevocable trust or proof of LLC membership. The bill will take effect for property tax assessment years beginning on or after January 1, 2026, and aims to provide more flexibility for disabled veterans in how they can own and receive property tax exemptions on their primary residences. The changes maintain the existing requirements that the property be used as a principal place of residence and not for commercial purposes.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1809&ddBienniumSession=2025%2F2025R