To Amend The Definition Of "assessed Value" For Purposes Of The Assessment Of Property; And To Establish A Method Or Procedure For The Valuation Of Property For Taxation Purposes Under Arkansas Constitution, Article 16, § 5.
Summary
HB1912 would change Arkansas property-tax assessment rules by redefining “assessed value” from 20% to 15% of a property’s appraised value. It also revises the rule for newly sold real property so that, at the next assessment date after a transfer of title, the county assessor would assess the property at 15% rather than 20% of appraised value.
The bill is framed as an amendment to the property assessment statutes and as a method for valuing property for taxation under Arkansas Constitution, Article 16, § 5. Its effective date is delayed until assessment years beginning on or after January 1, 2026, meaning the change would apply prospectively rather than immediately.
Impact
If enacted, HB1912 would lower the statutory assessment ratio used to calculate taxable value for real property in Arkansas, reducing the assessed value base from 20% to 15% of appraised value. That would affect county assessors, property owners, and local taxing jurisdictions that rely on property tax revenue, because a lower assessed value generally means a lower property tax bill unless millage rates are adjusted. The bill amends Arkansas Code §§ 26-26-1122 and 26-26-1123 and would apply to assessment years beginning on or after January 1, 2026.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears to be a straightforward tax-policy change focused on lowering the property assessment ratio, which may be attractive to property owners but potentially concerning to local governments that depend on property tax collections.
Contention
The main point of contention is likely the fiscal effect of reducing the assessment ratio from 20% to 15%, since that would decrease the taxable base for real property and could reduce revenue for counties, cities, school districts, and other local entities. Supporters would likely emphasize tax relief and lower property tax burdens, while opponents would likely focus on revenue losses and possible pressure to raise millage rates or cut services. No specific stakeholder positions were included in the provided discussion materials.