TO AMEND THE LAW CONCERNING THE ASSESSMENT OF PROPERTY FOR THE PURPOSE OF PROPERTY TAX; AND TO REPEAL THE REQUIREMENT THAT PERSONAL PROPERTY SUBJECT TO TAXATION BE LISTED OR REPORTED BY THE PROPERTY OWNER.

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

House Bill 1911 simplifies Arkansas property tax assessments by removing the need for owners to report personal property, easing their tax burden and changing assessor responsibilities.

Recommended for study in the Interim by the Committee on CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE

Purpose and Intent

House Bill 1911 (HB 1911) aims to amend existing laws regarding the assessment of property for property tax purposes in Arkansas. The primary intent of the bill is to simplify the property tax assessment process by eliminating the requirement for property owners to list or report their personal property to county assessors.

Key Provisions

Repeal of Listing Requirement: The bill repeals the requirement that property owners must list their personal property with county assessors for tax assessments.

Valuation Changes: It removes the provision that an owner's valuation of listed personal property is not conclusive, thereby changing how property valuations are determined.

Elimination of Penalties: Certain penalties related to delinquent property tax assessments will also be repealed, easing the financial burden on property owners who fail to report their property.

Assessment Process: County assessors will now be responsible for valuing personal property without a list provided by the owners. This includes a shift to self-reporting by utilities and other regulated entities regarding their property values.

Implementation Date: The provisions of the bill will take effect for assessment years beginning on or after January 1, 2026.

Impact

Affected Parties

Individual Taxpayers: Property owners will no longer need to actively report their personal property, which may simplify their tax obligations.

County Assessors: Assessors will need to adapt their processes significantly, as they will no longer receive property lists from owners. This may require additional training and operational adjustments.

Public Service Commission: The procedures for valuing utilities and other regulated entities will change, as these entities will self-report their property values.

Fiscal Considerations

Potential Decrease in Property Tax Revenue: The bill may lead to a decrease in total property tax collected, as the assessment process becomes less reliant on owner-reported values.

Resource Requirements: County assessors will need to revise their operational procedures and educational materials, which may require additional resources and time for implementation.

Procedural Aspects

Timeline for Implementation: The changes proposed in HB 1911 may take two to three years for full implementation, including the development of new materials and training for assessment professionals.

Legislative Actions: The bill was filed on March 31, 2025, and was subsequently recommended for study in the Interim by the Committee on City, County & Local Affairs on April 16, 2025, after being withdrawn by the author.

Conclusion

HB 1911 represents a significant shift in property tax assessment practices in Arkansas, aiming to reduce the administrative burden on property owners while altering the responsibilities of county assessors. The bill's long-term impacts on tax revenue and assessment accuracy will require careful monitoring as it moves through the legislative process and into implementation.

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