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HJR 1012

AN AMENDMENT TO THE ARKANSAS CONSTITUTION TO REPEAL PROVISIONS CONCERNING THE REAPPRAISAL AND REASSESSMENT OF REAL PROPERTY; AND TO AMEND ARKANSAS CONSTITUTION, AMENDMENT 79, CONCERNING REAL PROPERTY TAXES.

2025 Regular Session Introduced by Scott Richardson

HJR 1012 aimed to fix real property tax assessments for owners, preventing increases unless properties sold or improved, ensuring more predictable taxes but risking lower tax revenue.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HJR 1012

Summary of HJR 1012: Amendment to the Arkansas Constitution on Real Property Taxes

Bill Overview

Bill Number: HJR 1012
Title: An Amendment to the Arkansas Constitution to Repeal Provisions Concerning the Reappraisal and Reassessment of Real Property; and to Amend Arkansas Constitution, Amendment 79, Concerning Real Property Taxes.
Status: Died in House Committee at Sine Die adjournment
Introduced: February 10, 2025
Classification: Joint Resolution

Purpose and Intent

HJR 1012 aimed to amend the Arkansas Constitution to modify how real property is assessed for tax purposes. The primary intent was to provide property owners with greater control over their property tax assessments by fixing the assessed value of real property unless specific conditions occur, such as sale, new construction, or substantial improvements.

Key Provisions

  • Repeal and Replacement: The bill proposed to repeal existing provisions related to the reappraisal and reassessment of real property, specifically targeting Amendment 79, §§ 1, 2, and 4, and Article 16, § 14 of the Arkansas Constitution.

  • Fixed Assessed Value: Under HJR 1012, the assessed value of real property would remain fixed unless:

    • The property is sold, transferred, or conveyed.
    • New construction or substantial improvements are made.
    • The use of the property changes.

  • Assessment Timeline: The assessed value would be determined based on the most recent county-wide reappraisal completed on or before December 31, 2026. After this date:

    • Properties sold or transferred would be assessed at their sale value.
    • Newly constructed or substantially improved properties would be assessed based on their new value.
    • Changes in property use would trigger a reassessment based on the new use.

  • Impact on Tax Increases: The bill sought to eliminate annual increases in assessed value for existing properties, which are currently capped at 5% for homesteads and 10% for non-homesteads under Amendment 79.

Impact

  • Taxpayer Effects: If passed, property owners would not see increases in their property tax assessments unless they purchased new property or made significant improvements. This could lead to a more predictable tax environment for homeowners.

  • Fiscal Impact: The Department of Finance and Administration indicated that the bill could lead to a significant reduction in property tax collections, although the exact financial implications were deemed undetermined.

  • Real Estate Market: The proposed changes could potentially decrease real estate turnover, as homeowners might be less inclined to sell their properties to avoid higher tax bills on new purchases.

Procedural Aspects

  • Implementation Timeline: If approved by voters, the changes would take effect for assessment years starting January 1, 2027.
  • Administrative Changes: County assessors and appraisal contractors would need to adapt their processes and systems to comply with the new assessment rules, which could incur additional costs and require renegotiation of existing contracts.

Conclusion

HJR 1012 represented a significant shift in how real property taxes would be assessed in Arkansas, aiming to provide stability for property owners while potentially impacting tax revenues and the real estate market. However, the bill ultimately did not progress beyond the committee stage and was not enacted.

Compiled from official sources — confirm details with the bill’s official record.

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