HB1386

House Bill 1386 amends Arkansas law concerning property tax assessment and valuation. It defines a 'substantial improvement' to real property as an improvement that increases the assessed value by at least 25%. This definition excludes necessary repairs following a natural disaster, provided that the materials used in the repairs are not of higher quality or value than the original components. The bill also specifies that residential real property valuations must be determined only by property located within the state. For commercial real property, out-of-state property may only be considered for valuation purposes if no comparable commercial real property exists within Arkansas. The changes are effective for assessment years beginning on or after January 1, 2025.