This bill amends Arkansas law regarding the assessed value of real property, specifically limiting the increase in assessed value following a sale or transfer. It introduces a new subsection to Arkansas Code 26-26-1118, which stipulates that for the first assessment after a sale or transfer, the assessed value of real property cannot exceed five percent above the taxable value if the property is a taxpayer's homestead and serves as their principal residence. If the property is not a homestead, the increase is capped at ten percent above the taxable value. The bill defines "taxable value" 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 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