The bill aims to clarify and confirm existing laws regarding property tax relief, specifically focusing on the assessment of homesteads owned by individuals with disabilities or those aged sixty-five and older. It amends Arkansas Code 26-26-1120(b) to state that when such individuals sell their real property, the new purchaser can only claim a reduction in assessed value if they are entitled to such a limitation under Arkansas Constitution, Amendment 79. Furthermore, it mandates that the county assessor will assess the property at its full market value starting January 1 of the year following the sale, without any assessment limitations.

Additionally, the bill modifies Arkansas Code 26-26-1123 to establish that when real property is sold, the county assessor will assess it at twenty percent of the appraised value at the next assessment date, with exceptions for certain cases outlined in subsection (d). This subsection specifies that if the property is sold to someone entitled to a limitation under Amendment 79, the assessor will evaluate the property based on its assessed value at the time of purchase. Overall, the bill seeks to ensure that property tax assessments are conducted fairly and in accordance with constitutional provisions.

Statutes affected:
Old version SB131 Original - 1-27-2025 04:53 PM: 26-26-1120(b)
SB 131: 26-26-1120(b)