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HB 1809

TO ALLOW FOR PROPERTY OWNED BY A TRUST OR A LIMITED LIABILITY COMPANY TO QUALIFY AS A HOMESTEAD FOR PURPOSES OF THE PROPERTY TAX EXEMPTION FOR DISABLED VETERANS IN CERTAIN CIRCUMSTANCES.

2025 Regular Session Introduced by Matt McKee and 1 co-sponsor

Act 880 expands property tax exemptions for disabled veterans in Arkansas, allowing trusts and LLCs to qualify, benefiting veterans and their families.

Notification that HB1809 is now Act 880
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WeVote Research Nonpartisan
Bill Summary · HB 1809

Summary of House Bill 1809 (Act 880)

Purpose and Intent

House Bill 1809, now known as Act 880, aims to expand the eligibility criteria for property tax exemptions for disabled veterans in Arkansas. Specifically, it allows property owned by certain types of trusts and limited liability companies (LLCs) to qualify as a homestead for the purpose of property tax exemptions for disabled veterans, their surviving spouses, and minor dependent children.

Key Provisions

  • Eligibility Expansion: The bill modifies the definition of "homestead" to include properties owned by:

    • A revocable trust formed by the disabled veteran who resides in the property.
    • An irrevocable trust where the disabled veteran is the beneficiary and uses the property as their principal residence.
    • A limited liability company (LLC) whose only members are the disabled veteran and their spouse.

  • Documentation Requirements: To claim the exemption when the property is owned by a trust or LLC, the disabled veteran must provide:

    • A signed, notarized, and file-marked copy of the irrevocable trust.
    • For LLCs, any documents required by county tax collectors to justify the exemption, along with proof of eligibility from the Department of Veterans Affairs confirming the veteran's disability status.

  • Implementation Timeline: The provisions of this act will be effective for assessment years beginning on or after January 1, 2026.

Affected Parties

  • Disabled Veterans: The primary beneficiaries of this bill are disabled veterans who have placed their principal residence into a trust or LLC.
  • Surviving Spouses and Minor Dependents: The bill also extends benefits to surviving spouses and minor children of disabled veterans.
  • County Tax Collectors: Local tax officials will need to adapt their procedures to accommodate the new documentation requirements and monitor eligibility changes, such as remarriage of surviving spouses.

Fiscal Impact

The fiscal impact of HB 1809 is noted as none, indicating that the implementation of this bill is not expected to impose additional costs on the state budget.

Procedural Changes

  • The bill requires county tax collectors to develop new procedures for verifying claims related to trusts and LLCs.
  • Training for county collectors and updates to informational publications regarding the property tax exemption for disabled veterans will be necessary.

Legislative Actions

  • Introduced: March 17, 2025
  • Passed: April 14, 2025
  • Enrolled and Transmitted to Governor: April 15, 2025
  • Notification of Act 880: April 17, 2025

This summary provides a comprehensive overview of House Bill 1809, detailing its purpose, key provisions, and the impact it will have on disabled veterans and related parties in Arkansas.

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

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