This bill aims to exempt certain properties from taxation, specifically focusing on motor vehicles used exclusively for public charity. The General Assembly recognizes that under the Arkansas Constitution, buildings and materials used for public charity are exempt from property tax. Additionally, it acknowledges that motor vehicles owned by public charities and used solely for charitable purposes are also exempt from personal property tax. The bill seeks to provide public charities with the same flexibility as state and local governments in deciding whether to lease or purchase vehicles used for their charitable activities.

The bill amends Arkansas Code 26-3-301(7) to include motor vehicles used exclusively for public charity as exempt from taxation, provided they are subject to a lease of at least twelve months. This amendment replaces the previous language that only mentioned buildings and moneys related to public charities. Furthermore, the bill establishes that the changes will take effect for assessment years beginning on or after January 1, 2026.

Statutes affected:
Old version HB1691 V2 - 3-19-2025 02:18 PM: 26-3-301(7)
Old version HB1691 Original - 3-5-2025 01:54 PM: 26-3-301(7)
HB 1691: 26-3-301(7)
Act 497: 26-3-301(7)