Bill
HB 1274
Act 521 streamlines real estate transactions in Arkansas by allowing title companies to pay property taxes directly, reducing delays for buyers and sellers.
House Bill 1274, now known as Act 521, aims to streamline the process of paying real property taxes during real estate transactions in Arkansas. The bill allows title insurance agents, title insurers, or title companies to pay real property taxes on behalf of the property owner at the time of title issuance, thereby facilitating smoother property transfers.
Response Requirement: The bill mandates that county collectors must respond to requests for statements of real property taxes owed within three business days. This request can be made by individuals or entities involved in closing a real estate transaction.
Payment Acceptance: If a county collector fails to respond within the specified timeframe, they are required to accept payment for real property taxes without insisting on the payment of any related personal property taxes. This provision alleviates potential delays in property transactions due to outstanding personal property taxes.
Amendments to Existing Law: The bill amends Arkansas Code § 26-35-601 to clarify the conditions under which a county collector can accept payments for real estate taxes without requiring personal property taxes. It also stipulates that a collector who knowingly accepts such payments without the required personal property tax payment may face fines, but these fines will not apply if the collector fails to respond timely.
Who is Affected: The bill primarily impacts title insurance agents, title insurers, title companies, and county collectors. It also benefits property buyers and sellers by expediting the closing process of real estate transactions.
Taxpayer Impact: Taxpayers will experience a more efficient process when closing real estate transactions, as they will not face delays due to unpaid personal property taxes if the county collector does not respond in time.
Implementation Timeline: The bill was introduced on January 27, 2025, and after passing through various legislative stages, it was enacted as Act 521 on April 10, 2025. The timeline indicates that adequate time has been provided for implementation, ensuring that county collectors and title companies can adapt to the new requirements.
Legislative Journey: The bill underwent several readings and amendments in both the House and Senate before being passed. Notably, it was engrossed on March 10, 2025, and passed the Senate on April 8, 2025.
House Bill 1274 (Act 521) represents a significant change in the handling of real property taxes during real estate transactions in Arkansas. By allowing title companies to pay these taxes directly and requiring timely responses from county collectors, the bill aims to reduce delays and improve the efficiency of property transfers.
Compiled from official sources — confirm details with the bill’s official record.
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