This bill amends existing laws regarding the assessment of property in Arkansas, specifically focusing on the definition of "substantial improvements" and the method of property valuation. It introduces a new definition for "substantial improvement," which is defined as an enhancement to real property that increases its assessed value by at least 25%. The bill clarifies that necessary repairs made due to natural disasters do not count as substantial improvements unless they involve higher quality materials than those originally used. Additionally, the Assessment Coordination Division is granted the authority to define terms necessary for administering property assessments.

Furthermore, the bill modifies the procedures for valuing real property by stipulating that only real property located within Arkansas will be considered when determining the true market value of residential properties. In contrast, for commercial properties, out-of-state real property may be included in the valuation process only if there are no comparable properties available within the state. The provisions of this act will take effect for assessment years beginning on or after January 1, 2025.

Statutes affected:
Old version HB1386 Original - 2-3-2025 03:02 PM: 26-26-1122(a), 26-26-1122(b), 26-26-1202(a)
Old version HB1386 V2 - 2-27-2025 10:23 AM: 26-26-1122(a), 26-26-1122(b), 26-26-1202(a)
HB 1386: 26-26-1122(a), 26-26-1122(b), 26-26-1202(a)
Act 410: 26-26-1122(a), 26-26-1122(b), 26-26-1202(a)