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 utilized solely for charitable purposes are also exempt from personal property tax. The bill seeks to extend the same flexibility to public charities regarding the leasing or purchasing of motor vehicles as is currently available to state and local governments.

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 referenced buildings and moneys associated with 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)