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HB 1912

TO AMEND THE DEFINITION OF "ASSESSED VALUE" FOR PURPOSES OF THE ASSESSMENT OF PROPERTY; AND TO ESTABLISH A METHOD OR PROCEDURE FOR THE VALUATION OF PROPERTY FOR TAXATION PURPOSES UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5.

2025 Regular Session Introduced by Josh Bryant and 1 co-sponsor

HB 1912 aimed to lower Arkansas property taxes by reducing assessed value from 20% to 15% of appraised value, benefiting homeowners but impacting local revenue.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1912

Summary of House Bill 1912

Bill Overview

  • Bill Number: HB 1912
  • Title: To Amend the Definition of "Assessed Value" for Purposes of the Assessment of Property; and to Establish a Method or Procedure for the Valuation of Property for Taxation Purposes Under Arkansas Constitution, Article 16, § 5.
  • Status: Died in House Committee at Sine Die adjournment
  • Introduced: March 31, 2025
  • Sponsors: Representative Lundstrum and Senator Bryant

Purpose and Intent

House Bill 1912 aimed to amend the definition of "assessed value" in Arkansas property tax law. The bill sought to reduce the assessed value from 20% to 15% of the appraised value of real property. This change was intended to lower property taxes for Arkansas residents and provide a more favorable tax environment.

Key Provisions

  • Definition Change: The bill proposed to redefine "assessed value" to mean 15% of the appraised value of real property, down from the current 20%.
  • Implementation Date: The new definition was set to take effect for assessment years beginning on or after January 1, 2026.
  • Assessment Procedure: The bill included provisions for how property would be assessed during the sale of real property, maintaining the new assessed value percentage.

Impact

Taxpayer Impact

  • Reduction in Property Taxes: Homeowners and property owners would experience a decrease in their real property tax obligations due to the lower assessed value.

Fiscal Impact

  • Local Taxing Entities: The bill was expected to result in a significant reduction in revenue for local taxing entities, including public schools, counties, and cities, which rely on property taxes for funding.

Administrative Changes

  • Software and Training Needs: County offices would need to update their software systems and training materials to reflect the new assessment procedures. This could involve additional costs and time for implementation.

Procedural Aspects

  • Legislative Journey: The bill was read for the first time on April 1, 2025, and was referred to the City, County & Local Affairs Committee. However, it ultimately died in committee on May 5, 2025, at Sine Die adjournment, meaning it did not progress to a vote.

Conclusion

While HB 1912 proposed significant changes to property tax assessments in Arkansas, aimed at reducing the financial burden on property owners, it did not advance through the legislative process. The implications of such a change would have been substantial for both taxpayers and local governments had it been enacted.

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

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