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 purposes are exempt from property tax, as outlined in the Arkansas Constitution. Additionally, it recognizes that motor vehicles owned by public charities and used solely for public charity purposes are also exempt from personal property tax, aligning with the Assessment Coordination Division's previous recognition of such exemptions.

To implement these changes, the bill amends Arkansas Code 26-3-301(7) to include motor vehicles used exclusively for public charity and subject to a lease of at least twelve months. The bill also introduces legislative findings that support the need for flexibility in determining whether public charities should lease or purchase vehicles. The effective date for these provisions is set for assessment years beginning on or after January 1, 2026.

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)
Act 497: 26-3-301(7)