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 the assessed value if they are entitled to such a limitation under Arkansas Constitution, Amendment 79. Furthermore, it specifies that the county assessor must assess the property at its full market value starting January 1 of the year following the sale.

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 noted in subsection (d). This subsection allows for a different assessment approach when the property is sold to someone entitled to a limitation under Amendment 79, ensuring that the property is assessed based on its value at the time of purchase. Overall, the bill seeks to provide clarity and consistency in property tax assessments for vulnerable populations.

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