HB1599
To Provide For Certain Property To Be Exempt From Taxation.
Last Action (Feb. 26, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1599 proposes an amendment to Arkansas Code § 26-3-301(7) regarding property tax exemptions. The bill expands the current property tax exemption for institutions of purely public charity to include motor vehicles. Under the proposed language, motor vehicles as defined in § 26-52-103 that are subject to a lease agreement of at least twelve months by an institution of public charity would be exempt from taxation. This exemption applies to institutions that do not use their property or assets with a view to profit. The act is scheduled to take effect for assessment years beginning on or after January 1, 2026.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are institutions of purely public charity that utilize leased motor vehicles for their operations. By extending the tax exemption to include these leased vehicles, these organizations would experience reduced operational costs and lower tax liabilities.
Who Might Suffer?
The state and local government entities, such as counties and municipalities that rely on property tax revenue, may be negatively impacted by a reduction in their tax base. To the extent that these leased motor vehicles were previously taxed, the exemption represents a decrease in potential public revenue.
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