This bill aims to amend the method of property valuation as outlined in the Arkansas Constitution, specifically Article 16, Section 5. It introduces a series of definitions to clarify the terms used in established methods of property valuation for tax purposes. Key definitions include "cost approach," "economic life," "economic obsolescence," "fair market value," "functional obsolescence," "income approach," "market approach," "physical deterioration," "physical life," and "useful life." These definitions are intended to provide a clearer understanding of how property values are assessed, ensuring consistency and transparency in property taxation.

Additionally, the bill states the legislative intent for it to be remedial and clarifying in nature. It specifies that the new definitions will take effect for assessment years beginning on or after January 1, 2025. This timeline allows for the implementation of the clarified valuation standards, which are designed to enhance the accuracy and fairness of property tax assessments in Arkansas.