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 square footage by at least 25%. The bill clarifies that necessary repairs due to natural disasters do not qualify as substantial improvements. Additionally, it modifies the authority of the Assessment Coordination Division, allowing it to define terms necessary for administering property assessments without the previous requirement to define "substantial improvements."

Furthermore, the bill specifies that the true market value of real property will only consider properties located within the state, excluding the value of crops growing on the property. The effective date for these changes is set for assessment years beginning on or after January 1, 2025. These amendments aim to provide clearer guidelines for property assessment and valuation in Arkansas.

Statutes affected:
HB 1386: 26-26-1122(a), 26-26-1122(b), 26-26-1202(a)