This bill aims to amend the method of property valuation as outlined in the Arkansas Constitution, Article 16, Section 5, by providing clear definitions for terms used in property tax valuation methods. It introduces a new section to the Arkansas Code that defines key concepts such as "cost approach," "economic life," "fair market value," and various forms of obsolescence, among others. The intent of the General Assembly is to clarify and remediate the existing law regarding property tax valuation.

Additionally, the bill specifies that these definitions will be effective for assessment years beginning on or after January 1, 2025. This legislative change is designed to enhance the understanding and application of property valuation standards, ensuring that property taxes are assessed fairly and consistently across the state.