HB1103 increases Arkansas’s homestead property tax credit from $600 to $675 per assessment year. The bill amends Arkansas Code § 26-26-1118 to raise the amount of real property taxes reduced for each qualifying homestead, and it applies to assessment years beginning on or after January 1, 2026.
In practical terms, the bill provides a larger property tax benefit to homeowners who claim the homestead credit, lowering their annual real property tax liability by an additional $75 compared with prior law. Because the change is tied to assessment years, the new credit amount will be reflected in property tax assessments beginning with the 2026 assessment cycle.
Impact
The bill directly amends the state’s homestead property tax credit statute, Arkansas Code § 26-26-1118, by changing the credit amount from $600 to $675. It affects homeowners eligible for the homestead exemption/credit and will reduce local real property tax collections to the extent the higher credit lowers taxable bills. The act became Act 174 and is effective for assessment years beginning on or after January 1, 2026.
Sentiment
The available voting history shows strong, bipartisan support for the measure. It passed the House 94-0 and the Senate 33-0, indicating broad agreement on increasing the homestead property tax credit. No committee transcript is available, but the unanimous votes suggest the bill was viewed favorably and as a routine tax relief measure rather than a controversial policy change.
Contention
No notable contention is reflected in the available record. The bill appears to have been noncontroversial, with no recorded dissent in either chamber and no committee discussion snippets indicating objections. Any policy considerations would likely have centered on the tradeoff between homeowner tax relief and reduced local property tax revenue, but no specific opposition or competing viewpoints are documented here.
To Exempt From Gross Income A Gain By A Taxpayer Resulting From The Acquisition Of Property Under The Right Of Eminent Domain Or The Threat Of Condemnation.
To Create The Grocery Tax Relief Act; To Amend The Law Concerning The Sales And Use Taxes Levied On Food And Food Ingredients, As Affirmed By Referred Act 19 Of 1958; And To Exempt Groceries From State Sales And Use Taxes.
To Allow For Property Owned By A Trust Or A Limited Liability Company To Qualify As A Homestead For Purposes Of The Property Tax Exemption For Disabled Veterans In Certain Circumstances.