To Allow A Title Insurance Agent, Title Insurer, Or Title Company To Pay Real Property Taxes In Conjunction With The Issuance Of A Title.
Summary
HB1274 amends Arkansas law governing the collection of real property taxes and personal property taxes. The bill preserves the general rule that county collectors may not accept payment of real estate taxes without also collecting delinquent personal property taxes owed by the taxpayer, but it adds a specific exception for real estate transactions in which title is being transferred. Under that exception, if the transferring taxpayer has paid all delinquent personal property taxes, the county collector must accept payment of the real estate taxes at closing.
The bill also creates a new process for closings: a person or entity handling the real estate transaction may request a statement of all real estate taxes due on the parcel and any related delinquent personal property taxes, and the county collector must respond within three business days by writing or email. If the collector does not respond in time, the collector must accept payment of the real estate taxes for the parcel without requiring payment of related personal property taxes. The bill is aimed at making title issuance and property closings more efficient by ensuring tax information is provided promptly and by preventing delays in transfer transactions.
Impact
HB1274 changes Arkansas Code § 26-35-601 by adding a closing-related exception to the rule requiring personal property taxes to be paid before real estate taxes are accepted. It affects county collectors, title insurance agents, title insurers, title companies, and other entities facilitating real estate closings. The bill also creates a statutory deadline for collectors to provide tax payoff information and imposes a consequence for missing that deadline, which may reduce closing delays and shift some administrative burden to county collector offices.
Sentiment
The available voting record suggests the bill was broadly supported and noncontroversial. It passed the House 98-0 and the Senate 35-0 on third reading, indicating unanimous approval in both chambers. No committee transcript excerpts were provided, but the unanimous votes suggest the measure was viewed as a practical administrative fix rather than a contested policy change.
Contention
There is little evidence of substantive opposition in the available record. The main policy tension in the bill is between the existing tax-collection enforcement rule and the need to avoid delaying real estate closings. County collectors may view the three-business-day response requirement as an added administrative obligation, while title professionals and closing agents are likely to support the new exception and deadline because it provides certainty at closing. The bill does not appear to have generated recorded controversy in the votes provided.