This bill amends the law regarding the assessed value of real property in Arkansas, specifically addressing the limitations on increases in assessed value following a sale or transfer. The new provisions stipulate that for the first assessment after a sale or transfer, the assessed value of the property cannot exceed five percent above its taxable value if it is the taxpayer's homestead and principal residence. If the property is not a homestead, 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 changes will take effect for assessment years beginning on or after January 1, 2026. This legislation aims to provide more predictable property tax assessments for homeowners and property owners, potentially easing the financial burden associated with property tax increases following real estate transactions.

Statutes affected:
HB 1715: 26-26-1118