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Taxes & Budget

HB1454

To Amend The Definition Of A Homestead For Purposes Of Property Taxation; And To Provide That Certain Dwellings Owned By A Limited Liability Company Qualify As A Homestead.

Passed

Last Action (April 11, 2023): Notification that HB1454 is now Act 541

Sponsors

AI-Generated Summary

House Bill 1454 amends Arkansas law to expand the definition of 'homestead' for property tax purposes. Specifically, it allows a dwelling owned by certain limited liability companies (LLCs) to qualify as a homestead, provided that the LLC's members consist of a married couple or a single natural person who uses the dwelling as their principal residence. The bill outlines specific requirements for claiming this credit, including providing a certificate of good standing for the LLC and a signed attestation that the member is not claiming the credit on any other property. It also clarifies the documentation required for trusts to qualify for similar homestead exemptions. The provisions of this act become effective for assessment years starting on or after January 1, 2024.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are individuals or married couples who own their principal residence through a limited liability company and wish to claim the homestead property tax credit. By enabling these entities to qualify for the exemption, those who structure their personal estate or asset ownership through an LLC will benefit from the same property tax protections available to individuals who own their homes directly.

Who Might Suffer?

The bill could be viewed as negatively impacting county or local government budgets, as expanding the eligibility for the homestead property tax credit may reduce total property tax revenue collected. Additionally, taxpayers who do not utilize LLCs for home ownership might perceive an inequity if the administrative burden of verifying eligibility for LLCs results in increased costs for county assessors' offices that are eventually passed on to the general tax base.

Vote Records

Third Reading

April 5, 2023
Yea: 32 Nay: 0 NV: 0 Absent: 3 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Linda Chesterfield Democrat Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Yea
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Absent
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Absent
Frederick Love Democrat Senate Yea
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate Yea
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Absent
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Yea
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Yea
Matt Stone Republican Senate Yea

Third Reading

March 29, 2023
Yea: 94 Nay: 0 NV: 6 Absent: 0 Passed
View individual votes (100)
Legislator Party Chamber Vote
Fred Allen Democrat House Yea
Lane Jean Republican House Yea
Stephen Meeks Republican House Yea
Mark Perry Democrat House Yea
Jon Eubanks Republican House Yea
Matthew Shepherd Republican House NV
Jeff Wardlaw Republican House NV
Bruce Cozart Republican House Yea
David Whitaker Democrat House Yea
Deborah Ferguson Democrat House Yea
Charlene Fite Republican House Yea
Mike Holcomb Republican House Yea
Stephen Magie Democrat House Yea
Mark McElroy Republican House Yea
Josh Miller Republican House Yea
Richard Womack Republican House Yea
Jack Ladyman Republican House NV
Robin Lundstrum Republican House Yea
Dwight Tosh Republican House Yea
Lanny Fite Republican House Yea
Grant Hodges Republican House Yea
Rick Beck Republican House Yea
Mary Bentley Republican House Yea
Les Eaves Republican House Yea
Justin Gonzales Republican House Yea
Julie Mayberry Republican House Yea
Ken Ferguson Democrat House NV
Ron Mcnair Republican House Yea
Milton Nicks Democrat House NV
Marcus Richmond Republican House Yea
Vivian Flowers Democrat House Yea
Deann Vaught Republican House Yea
Karilyn Brown Republican House Yea
Sonia Eubanks Barker Republican House Yea
Frances Cavenaugh Republican House Yea
Jack Fortner Republican House Yea
Jimmie Gazaway Republican House Yea
Roger Lynch Republican House Yea
John Maddox Republican House Yea
Aaron Pilkington Republican House Yea
Johnny Rye Republican House Yea
Les Warren Republican House Yea
Danny Watson Republican House Yea
Carlton Wing Republican House Yea
Austin Mccollum Republican House Yea
Carol Dalby Republican House NV
Steve Hollowell Republican House Yea
Brian Evans Republican House Yea
Lee Johnson Republican House Yea
Andrew Collins Democrat House Yea
Stan Berry Republican House Yea
Harlan Breaux Republican House Yea
Cameron Cooper Republican House Yea
Nicole Clowney Democrat House Yea
Cindy Crawford Republican House Yea
Denise Garner Democrat House Yea
Tippi McCullough Democrat House Yea
Jay Richardson Democrat House Yea
Jamie Scott Democrat House Yea
Jim Wooten Republican House Yea
Denise Ennett Democrat House Yea
Richard McGrew Republican House Yea
Joy Springer Democrat House Yea
Howard Beaty Republican House Yea
Tony Furman Republican House Yea
Kendon Underwood Republican House Yea
David Ray Republican House Yea
Mark Berry Republican House Yea
John Carr Republican House Yea
Rick McClure Republican House Yea
Keith Brooks Republican House Yea
Delia Haak Republican House Yea
Ashley Hudson Democrat House Yea
Jon Milligan Republican House Yea
RJ Hawk Republican House Yea
Wade Andrews Republican House Yea
Rebecca Burkes Republican House Yea
DeAnna Hodges Republican House Yea
Hope Duke Republican House Yea
Zack Gramlich Republican House Yea
Mindy McAlindon Republican House Yea
Matt Duffield Republican House Yea
Stetson Painter Republican House Yea
Steve Unger Republican House Yea
Wayne Long Republican House Yea
Scott Richardson Republican House Yea
Brandon Achor Republican House Yea
Jeremiah Moore Republican House Yea
Joey Carr Republican House Yea
Matt Brown Republican House Yea
Shad Pearce Republican House Yea
Chad Puryear Republican House Yea
Ryan Rose Republican House Yea
Bart Schulz Republican House Yea
Trey Steimel Republican House Yea
Tara Shephard Democrat House Yea
Jeremy Wooldridge Republican House Yea
Kendra Moore Republican House Yea
Brit McKenzie Republican House Yea
Steven Walker Republican House Yea
Read Full Bill on arkleg.state.ar.us