Bill

HB 1912

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2025 Regular Session Introduced by Arturo Alonso

HB1912 lowers assessed value from 20% to 15% of appraised real property, shrinking the tax base and likely reducing local revenues starting with 2026 assessments.

Referred to Public Health

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Bill Summary · HB 1912

Summary — HB 1912 (Arkansas, 95th General Assembly, 2025)

Short title / issue
- Officially filed as HB 1912 by Rep. Lundstrum (with Sen. J. Bryant). Despite an initial header that references sewer districts, the actual bill text and fiscal documents change the property tax assessment rate (see “Discrepancies” below).

Purpose and intent

HB 1912 amends Arkansas law to change how “assessed value” of real property is defined and applied for property tax purposes. The primary intent is to lower the statutory assessment level used to compute property taxes.

Key provisions

Amends Ark. Code § 26-26-1122(a)(1) to redefine “assessed value” as 15% of the appraised value of real property (replacing the existing 20%).
Amends Ark. Code § 26-26-1123(a) to direct county assessors to assess sold real property at 15% of appraised value at the next assessment date after transfer of title.
Effective date: Sections become effective for assessment years beginning on or after January 1, 2026.

Impact (practical effect)

Tax base reduction: The statutory assessment rate would fall from 20% to 15% of appraised value — a 25% reduction in assessed-value-based tax base (15% is 75% of the current 20%). If millage rates remain unchanged, property tax revenues collected from real property would decline roughly proportionally to that reduction.
Local governments and school districts: The Department of Finance and Administration’s Fiscal Impact Statement characterizes the change as producing a “significant reduction” in revenues for local taxing entities (public schools, counties, cities).
Property taxpayers: Individual property owners would generally see lower real property tax bills (absent offsetting changes to millage or other revenue mechanisms).

Administrative / implementation effects

Counties would need software updates, revised published materials, and training for personnel to implement the new assessment rate and calculation procedures.
The DFA noted the time required for implementation is unknown; no specific fiscal dollar amounts were provided in the statement.

Legislative status & actions (selected)

Filed: January 16, 2025 (Arkansas).
Read first time: March 14, 2025.
Referred to committees: Multiple committee actions recorded; final listed action: “Died in House Committee at Sine Die adjournment” (May 5, 2025). The record also shows “Prefiled (H)” as of December 1, 2025 — see notes below on conflicting entries.

Notes / discrepancies

The bill packet provided includes inconsistent and extraneous material: a header and subject line referencing “reorganized common sewer districts” and a separate Illinois HB1912 text (unrelated to Arkansas) about independent living rules for youth. The substantive Arkansas bill text and DFA fiscal statement both address changing the property tax assessment rate from 20% to 15%. Users should treat the sewer-district title and the Illinois text as unrelated or misfiled material.

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