HJR1012
An Amendment To The Arkansas Constitution To Repeal Provisions Concerning The Reappraisal And Reassessment Of Real Property; And To Amend Arkansas Constitution, Amendment 79, Concerning Real Property Taxes.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
HJR 1012 proposes an amendment to the Arkansas Constitution to transition the state to an acquisition-value based property tax system. Under this proposal, the assessed value of real property would be frozen at the value determined on or before December 31, 2026, until a triggering event occurs. These triggering events include the sale, transfer, assignment, or conveyance of the property to another person, the completion of new construction, the completion of substantial improvements, or a change in the property's use. The resolution also repeals existing constitutional provisions regarding mandatory periodic county-wide reappraisals and the associated tax rate rollback procedures. The intent is to empower property owners to control tax increases by stabilizing assessment values. If passed by the legislature, the measure would be submitted to voters for final approval.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be long-term property owners, particularly those who have held their real estate for extended periods during which market values have appreciated significantly. These individuals would see their property tax assessments remain fixed at historical levels rather than rising with local market values. Additionally, families or individuals who remain in the same primary residence for many years would benefit from predictable and lower property tax liabilities compared to a market-based assessment system.
Who Might Suffer?
The primary negatively impacted entities would be local governments, school districts, and community colleges that rely on property tax revenue for funding, as this system could stifle revenue growth and create budget volatility. Potential homebuyers and newcomers to a community would be negatively impacted because they would face 'entry-level' tax assessments based on current market values, creating a tax disparity between new and long-term owners of similar properties. Furthermore, the repeal of mandated reappraisal and rollback procedures could limit the oversight and adjustment mechanisms currently intended to prevent sudden, excessive tax spikes for the public at large.
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