The bill proposes an increase to the homestead property tax credit in Arkansas. Specifically, it amends the existing law to raise the credit amount from six hundred dollars ($600) to six hundred seventy-five dollars ($675) for each assessment year. This change aims to provide greater financial relief to property owners by reducing the amount of real property taxes assessed on their homesteads.

Additionally, the bill establishes an effective date for this increase, stating that the new credit amount will apply to assessment years beginning on or after January 1, 2026. This timeline allows for a transition period before the new credit amount takes effect, ensuring that property owners can benefit from the increased tax relief in the near future.

Statutes affected:
HB 1103: 26-26-1118(a)