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HB 1715

Enacting comprehensive protections for victims of domestic violence and other violence involving family members or intimate partners.

2023-2024 Regular Session Introduced by Steve Bergquist and 20 co-sponsors

HB1715 caps the first post-transfer property assessment: up to 5% (homestead) or 10% (non-homestead) above the seller's taxable value, easing buyers' initial tax bills.

Effective date 7/23/2023.
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Bill Summary · HB 1715

Summary — HB 1715 (Arkansas, 95th General Assembly, 2025)

Status: Died in House committee (Sine Die adjournment, 05/05/2025)
Sponsors: Rep. Lundstrum; Sen. J. Bryant
Introduced: 12/30/2024
Effective provision (if enacted): assessment years beginning on or after January 1, 2026
Related/companion bills: HB 3430, HB 3480

Main purpose

HB 1715 would limit how much the assessed value of real property may increase for the first tax assessment after a sale or other transfer of title. The intent is to constrain post‑transfer assessment spikes and allow buyers to inherit certain assessment limitations that previously applied to sellers.

Key provisions

  • Adds a new subsection to Ark. Code § 26-26-1118.
  • For the first assessment following a sale or other transfer:
    • If the property is a homestead used as the buyer’s principal residence: the assessed value may not increase by more than 5% above the seller’s taxable value as of the transfer date.
    • If the property is not a homestead used as the buyer’s principal residence: the assessed value may not increase by more than 10% above the seller’s taxable value as of the transfer date.
  • Defines “taxable value” as the value on which the seller was assessed for property tax on the date of the sale/transfer.
  • Effective for assessment years beginning on or after January 1, 2026.

Who would be affected

  • Buyers of real property: could experience lower immediate post‑purchase assessed values (and therefore lower property tax bills in the first assessment year) compared with current practice.
  • Sellers: their taxable value at time of sale becomes the baseline for limiting the buyer’s immediate assessment increase.
  • Local governments and taxing entities (counties, school districts, municipalities): potential reduction or stagnation in property tax revenues, particularly in jurisdictions with higher shares of older homeowners.
  • County assessors and assessment offices: require procedural changes, software updates, staff training, and taxpayer education.

Fiscal and administrative impacts

  • Fiscal: DFA estimates local property tax collections could decrease or remain flat, especially in areas with higher-than-average populations aged 65+. Exact revenue impact would depend on turnover rates and local value trends.
  • Administrative: County assessment software would need programming changes; Assessment Coordination Division materials and training would need revision; assessors must change how transfers are entered and staff must be re‑trained.

Legal/technical note

The DFA legal analysis flags potential inconsistency with Ark. Code § 26-26-1123, which states that after a sale the county assessor shall assess at 20% of appraised value at the next assessment date following transfer. HB 1715 may require amendment or reconciliation with that provision to avoid conflicting assessment rules.

Procedural/timeline note

Although the bill included a January 1, 2026 assessment effective date, it did not advance: it died in House committee at the end of the 2025 session. (Separately, documents provided include unrelated material from another state's HB1715; the summary above reflects the Arkansas bill text.)

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

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