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 various terms used in property tax valuation methods. The legislation introduces a new section to the Arkansas Code that defines key concepts such as "cost approach," "economic life," "fair market value," and "functional obsolescence," among others. These definitions are intended to standardize the valuation process and ensure clarity in property tax assessments.

Additionally, the bill states that it is remedial in nature, aiming to clarify existing laws regarding property valuation. It specifies that the new definitions will take effect for assessment years beginning on or after January 1, 2025. This legislative effort seeks to enhance the understanding and application of property tax valuation methods, ultimately benefiting both property owners and tax assessors in Arkansas.