The bill aims to exempt certain properties from taxation, specifically focusing on motor vehicles used exclusively for public charity. It establishes that buildings, grounds, and materials utilized for public charity are exempt from property tax, as stated in the Arkansas Constitution. Additionally, it recognizes that motor vehicles owned by public charities and used solely for public charity purposes are exempt from personal property tax. The bill also provides flexibility for public charities to decide whether to lease or purchase motor vehicles used for their charitable activities, similar to the provisions already in place for state and local government vehicles.

To implement these changes, the bill amends Arkansas Code 26-3-301(7) to include motor vehicles owned by institutions of public charity as exempt from tax, provided they are subject to a lease of at least twelve months. The effective date for this amendment is set for assessment years beginning on or after January 1, 2026. This legislation aims to support public charities by alleviating their tax burdens and providing them with more options regarding their vehicle usage.

Statutes affected:
Old version HB1691 Original - 3-5-2025 01:54 PM: 26-3-301(7)
Old version HB1691 V2 - 3-19-2025 02:18 PM: 26-3-301(7)
HB 1691: 26-3-301(7)