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SB 573

Relating to restrictions on use or sale of motor vehicles based on power source

2025 Regular Session Introduced by Mark Maynard and 5 co-sponsors

Senate Bill 573 standardizes property valuation methods for taxes in Arkansas, ensuring fair assessments for owners and requiring training for county officials and appraisers.

Chapter 232, Acts, Regular Session, 2025
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Bill Summary · SB 573

Summary of Senate Bill 573 (SB 573)

Purpose and Intent

Senate Bill 573 (SB 573) aims to amend the method of property valuation for ad valorem taxes in Arkansas by providing clear definitions for various terms used in established valuation methods. This legislation seeks to clarify and standardize the valuation process, ensuring consistency and fairness in property tax assessments across the state.

Key Provisions

SB 573 introduces several important definitions that will guide the valuation of both real and personal property for tax purposes. The key definitions include:

  • Cost Approach: Estimation of property value based on the current cost to construct improvements, minus depreciation.
  • Economic Life: The expected profitable use period of a property.
  • Economic Obsolescence: Value loss due to external factors affecting the property.
  • Fair Market Value: The most probable price a property would sell for in an open market transaction.
  • Functional Obsolescence: Value loss due to inefficiencies or inadequacies of the property itself.
  • Income Approach: Estimation of property value based on the present value of projected income streams.
  • Market Approach: Estimation of property value based on sales of comparable properties.
  • Physical Deterioration: Value loss due to wear and tear or physical stresses.
  • Physical Life: The expected lifespan of a property before it deteriorates.
  • Useful Life: The expected period a property can perform its intended function.

Affected Parties

The bill will impact various stakeholders, including:

  • Property Owners: Changes in valuation methods may affect property tax assessments.
  • County Assessors and Officials: Training and resources will be required to implement the new definitions and methods.
  • Mass Appraisal Firms: Adjustments to contracts and methodologies will be necessary to comply with the new standards.

Procedural and Timeline Aspects

  • Effective Date: The provisions of SB 573 will take effect for assessment years beginning on or after January 1, 2025.
  • Implementation Timeline: A minimum of two years is anticipated for updating resources and training staff. Full reappraisal of properties may take up to four years to complete.
  • Fiscal Impact: The bill is expected to have no immediate impact on state revenues, but the effect on property tax collections is currently unknown.

Legislative Status

As of April 18, 2025, SB 573 has been enacted as Act 783 after passing through various legislative stages, including committee reviews and votes in both the Senate and House.

Related Legislation

  • HB 336: A companion bill that may address similar issues related to property valuation.

This summary provides an overview of SB 573, highlighting its purpose, key provisions, and potential impacts on property valuation and taxation in Arkansas.

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

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