Arkansas House Bill HB1715

Arkansas 2025 Regular Session

• Introduced: 3/10/25
• Refer: 3/10/25
• Failed: 5/5/25

Caption

To Limit The Increase In The Assessed Value Of Real Property After A Sale Or Other Transfer Of Real Property.

Impact

The proposed changes in HB1715 would alter how local assessors determine property values, creating a more predictable system for homeowners and potential buyers. The law, if enacted, would limit the financial impact on families during property transitions, particularly beneficial for first-time home buyers or those attempting to relocate within the state. Furthermore, it could foster stability in the housing market by mitigating sudden surges in property taxes post-sale. This approach aims to balance the needs of local governments for tax revenue while securing homeowners' financial interests during property transitions.

Summary

House Bill 1715 seeks to amend Arkansas state law regarding the assessed value of real property, particularly focusing on the limits of valuation increases following the sale or transfer of such properties. Under this bill, newly sold or transferred real estate would be assessed at a maximum of five percent over its taxable value if it's a homestead or up to ten percent if it is not, thus providing a safeguard against excessive valuation increases that could significantly affect tax burdens on property owners. The goal is to protect homeowners from steep property tax hikes while still allowing for some increase in value assessments based on market conditions.

Contention

Some points of contention may arise surrounding HB1715, primarily from local government officials who rely on property tax revenues for funding public services. Critics might argue that limiting assessment increases could result in lower revenue for municipalities, potentially challenging their budgets and infrastructure projects. However, proponents of the bill argue that the measure enhances fairness in taxation and encourages homeownership. Discussions in legislative sessions may reflect a broader concern over how local governments can adjust to reduced revenues while maintaining essential services.