Bill > SB573

This bill amends Arkansas property tax law by providing detailed definitions for key terms related to property valuation. Specifically, the bill establishes precise meanings for terms such as "fair market value", "cost approach", "economic obsolescence", "functional obsolescence", and other technical concepts used in property tax assessment. The definitions aim to create a standardized framework for how property values are determined, including explaining how different factors like physical deterioration, economic conditions, and property inefficiencies can impact a property's value. The bill introduces ten comprehensive definitions that clarify how assessors should evaluate property, including specifying that "fair market value" means the most probable price a property would bring in an open market transaction between knowledgeable, willing buyers and sellers. These definitions will become effective for property assessment years beginning on or after January 1, 2025, and are intended to provide clarity and consistency in how property values are calculated for tax purposes across Arkansas.

Agriculture and Natural Resources, Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb573&ddBienniumSession=2025%2F2025R