Arkansas House Bill HB1836

Arkansas 2023 Regular Session

• Introduced: 4/3/23
• Refer: 4/3/23
• Failed: 5/1/23

Caption

To Allow A Title Insurance Agent, Title Insurer, Or Title Company To Pay Real Property Taxes In Conjunction With The Issuance Of A Title.

Impact

The enactment of HB1836 would lead to more efficient real estate transactions by enabling title companies to manage real estate tax payments directly. This could alleviate concerns for buyers about outstanding taxes on a property that could delay or complicate the closing process. With this bill, the transaction process may become more streamlined, enhancing overall efficiency within the property transfer system in Arkansas.

Summary

House Bill 1836 seeks to amend existing laws concerning the collection of both real property taxes and personal property taxes in Arkansas. Its primary aim is to allow title insurance agents, title insurers, or title companies to pay real property taxes concurrently with the issuance of a title insurance policy. This modification addresses situations where property taxes may otherwise hold up the closing process in real estate transactions, thereby promoting a smoother transaction process for buyers and sellers alike.

Contention

While the bill primarily seems to facilitate smoother transactions and potentially reduce administrative burdens, it may raise questions around accountability and transparency in tax payments. There is potential for contention among stakeholders such as local governments, which rely on tax revenues collected from property, and title companies, as to who bears responsibility for ensuring that taxes are properly paid. Ensuring that this legislation does not lead to negligence in tax collection practices will be crucial.