To Amend The Definition Of "homestead" For The Purpose Of The Property Tax Exemption For Disabled Veterans, Surviving Spouses, And Minor Dependent Children.
Summary
HB1129 amends Arkansas’s property tax exemption law for disabled veterans, surviving spouses of disabled veterans, and minor dependent children. The bill changes the definition of “homestead” for purposes of the exemption so that it includes not only the dwelling used as the principal residence, but also up to 160 contiguous acres of real property, so long as that contiguous land is not used for a commercial purpose. Under prior law, the contiguous acreage limit was 40 acres.
The bill applies beginning with assessment years on or after January 1, 2025. In practical terms, it expands the amount of land that may qualify for the property tax exemption, potentially reducing property tax liability for eligible veterans’ households that own larger noncommercial tracts surrounding their residence. The amendment is limited to the homestead definition used in the disabled-veteran exemption statute and does not otherwise alter eligibility categories or the underlying exemption structure.
Impact
HB1129 directly amends Arkansas Code § 26-3-306, expanding the statutory definition of “homestead” for the disabled veteran property tax exemption from up to 40 contiguous acres to up to 160 contiguous acres, provided the land is not used for commercial purposes. This change broadens the scope of property that can receive the exemption and may reduce local property tax revenues where eligible properties include larger rural tracts. The effective date applies to assessment years beginning on or after January 1, 2025, affecting county assessors, tax collectors, and qualifying disabled veterans, surviving spouses, and minor dependent children.
Sentiment
The available voting history suggests strong bipartisan support for the bill. It passed the House unanimously, 100-0, and later passed the Senate with only one dissenting vote, indicating broad agreement with the policy goal of expanding tax relief for disabled veterans and their families. No committee transcript is available, but the vote totals point to a generally favorable reception and little visible opposition.
Contention
There is little evidence of major contention in the available record. The only apparent policy issue is the size of the acreage expansion—from 40 to 160 contiguous acres—which could raise concerns about the fiscal impact on local governments and the breadth of the exemption, especially in rural areas. Any opposition likely would have centered on revenue effects or the scope of the tax benefit, but the near-unanimous votes suggest those concerns were limited or outweighed by support for veterans’ tax relief.