The bill amends Arkansas Code 26-26-1118 to introduce limitations on the increase in the assessed value of real property following a sale or transfer. Specifically, it establishes that for the first assessment after such a transaction, the assessed value of the property cannot exceed five percent above its taxable value if it is a homestead used as the taxpayer's principal residence. For properties that are not homesteads, the increase is capped at ten percent above the taxable value. The term "taxable value" is defined as the value on which the seller is assessed property tax at the time of the sale or transfer.

Additionally, the bill specifies that these new provisions will take effect for assessment years beginning on or after January 1, 2026. This legislative change aims to provide more predictable property tax assessments for homeowners and property owners in Arkansas, potentially easing the financial burden associated with property tax increases following real estate transactions.

Statutes affected:
HB 1715: 26-26-1118