This bill amends existing laws regarding the valuation and assessment of accessory dwelling units (ADUs) for property tax purposes in Arkansas. It prohibits the separate valuation and assessment of an ADU from the primary residence, ensuring that both are treated as a single parcel of residential property. The bill defines an accessory dwelling unit as a secondary dwelling that is located on the same parcel as the primary residence, is independent and smaller than the primary residence, and is owned by the same individual.

Additionally, the bill specifies that residential properties used as the principal place of residence cannot be subdivided to create a separate parcel for an ADU. The new legal language clarifies the valuation process and establishes that these changes will take effect for assessment years beginning on or after January 1, 2026.

Statutes affected:
HB 1775: 26-26-1202(a)