HB1912
To Amend The Definition Of "assessed Value" For Purposes Of The Assessment Of Property; And To Establish A Method Or Procedure For The Valuation Of Property For Taxation Purposes Under Arkansas Constitution, Article 16, § 5.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
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AI-Generated Summary
House Bill 1912 amends Arkansas Code § 26-26-1122 and § 26-26-1123 to adjust the definition of 'assessed value' for real property. Specifically, the bill proposes reducing the assessment ratio from 20% to 15% of the appraised value of real property. This change would apply to the general assessment of real property as well as the assessment of property following a transfer of title. The act is slated to take effect for assessment years beginning on or after January 1, 2026.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be property owners across Arkansas. By lowering the assessment ratio from 20% to 15%, the taxable value of real property would decrease, which generally results in a lower property tax liability for both residential and commercial property owners, assuming millage rates remain constant.
Who Might Suffer?
The primary entities negatively impacted would be local governments, school districts, and other taxing units that rely on property tax revenue to fund their operations. A reduction in the assessed value percentage would lead to a lower tax base, potentially resulting in decreased revenue for public services, schools, and infrastructure maintenance unless local jurisdictions choose to increase their millage rates to offset the loss.
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