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HB 1809

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2025 Regular Session Introduced by Mark Earley and 3 co-sponsors

Expands disabled veteran homestead exemption to include homes in revocable/irrevocable trusts or an LLC, with required trust/LLC documentation for eligibility.

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Bill Summary · HB 1809

Summary — HB 1809 (Arkansas, 95th General Assembly, 2025)

Note: The provided packet contained mixed metadata (including an unrelated municipal tax title and an Illinois bill text). This summary treats HB 1809 as enacted in Arkansas (Act 880) and describes the provisions in the Arkansas engrossed H1 version concerning the disabled‑veteran homestead property‑tax exemption.

Purpose

Allow a disabled veteran’s principal residence to qualify for the Arkansas property‑tax homestead exemption even when legal title to the residence is held in certain trusts or in a limited liability company (LLC) under specified conditions.

Key provisions

  • Amends Arkansas Code § 26‑3‑306 (property‑tax exemption for disabled veterans, surviving spouses, and minor dependent children).
  • Expands the statutory definition of “homestead” to include a dwelling and contiguous property (up to 40 acres) that is owned by:
    • A revocable trust formed by the disabled veteran who occupies the dwelling as their principal residence; or
    • An irrevocable trust of which the disabled veteran who occupies the dwelling is a beneficiary; or
    • A limited liability company whose sole members are the disabled veteran (who occupies the dwelling) and, optionally, the veteran’s spouse.
  • Documentation requirements to claim the exemption:
    • For trust‑owned property: furnish to the county collector a signed, notarized, and file‑marked copy of the trust (the engrossed H1 deletes previous language so that a copy of the trust—revocable or irrevocable—is required).
    • For LLC‑owned property: furnish the proof of eligibility required under § 26‑26‑1118(b)(2)(A)(ii) (i.e., records demonstrating the LLC meets state requirements to hold homestead property).
  • Retains existing substantive eligibility (e.g., veteran must meet disability/VA eligibility criteria).

Who is affected

  • Primary beneficiaries: 100% disabled veterans (and their surviving spouses/minor dependent children) who have placed their principal residence into a qualifying revocable or irrevocable trust or into an LLC meeting the statutory member requirement.
  • County collectors and local tax offices: must accept and review new documentation, update procedures, and monitor continuing eligibility (e.g., surviving spouse remarriage, whether dependents remain minors).

Fiscal and administrative impact

  • Fiscal Impact: DFA reports no fiscal impact to state revenues.
  • Taxpayer Impact: Eligible disabled veterans who previously placed their residence in an eligible trust or in an eligible LLC can now claim the homestead exemption.
  • Resources required: training for county collectors/staff and updates to public materials describing the disabled veteran exemption.

Procedural / timeline details

  • Effective date: Sections 1 and 2 effective for assessment years beginning on or after January 1, 2026.
  • Claim process: In addition to trust/LLC documents, claimants must continue to provide VA documentation verifying veteran disability status (per current practice).

Additional notes

  • DFA legal staff recommended clarifying the trust‑document requirement; Amendment H1 removed the phrase “or irrevocable” to ensure the requirement applies to both revocable and irrevocable trusts.
  • The statute continues to limit homestead property to the dwelling and contiguous property not used for commercial purposes (up to 40 acres).

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

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