HB1730
To Provide That Buildings Used As Dedicated Church Property Are Exempt From Property Tax Regardless Of Whether The Building Is Owned Or Leased By The Church Using The Property.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
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AI-Generated Summary
House Bill 1730 amends Arkansas law regarding property tax exemptions for dedicated church property. It establishes that church-related buildings—including places of worship, administrative offices, parsonages, and educational facilities—are exempt from property taxes regardless of whether the church owns or leases the property. This expands the existing exemption, which previously focused on owned property, to include leased facilities. The bill explicitly lists various types of eligible buildings, such as daycare centers, recreation centers, and private schools operated in connection with a church. The act applies to assessment years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are churches and religious organizations in Arkansas that currently lease property for worship, administrative, or educational purposes. By eliminating property tax requirements for leased facilities, these religious entities will experience reduced operational costs. Additionally, private church schools, daycares, and youth centers operated by religious organizations that do not own their premises will also benefit from this tax-exempt status.
Who Might Suffer?
The primary entities negatively impacted are local and county governments that rely on property tax revenue. Because this bill expands tax exemptions, it will likely lead to a reduction in local tax collections, which could impact the funding available for public services and schools in those jurisdictions. Property owners who lease their buildings to churches may also face shifts in their own tax liabilities or the local tax base dynamics, depending on how local tax assessors interpret and implement these changes.
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