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HR 1006

TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION BILL TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT.

2026 Fiscal Session Introduced by Bart Schulz

HR 1006 would increase the Homestead Property Tax Credit from $600 to $675 for 2026 and later, reducing homeowners’ property tax liability.

READ AND ADOPTED.
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WeVote Research Nonpartisan
Bill Summary · HR 1006

Summary of HR 1006 (2026 Session, Arkansas)

Purpose and Intent

  • HR 1006 authorizes the introduction of a nonappropriation bill that would increase the Homestead Property Tax Credit.
  • The underlying policy goal is to raise the annual credit applied to qualified homesteads, reducing real property tax liability for homeowners.

Key Provisions (as introduced)

  • The proposed change amends Arkansas Code § 26-26-1118(a)(1)(A) to increase the Homestead Property Tax Credit.
  • Current structure (as amended by HR 1006):
    • The homestead tax credit would reduce real property taxes on a homeowner’s qualified homestead by $600 for each assessment year.
    • HR 1006 proposes increasing this credit to $675 (i.e., an additional $75 per year).
  • Effective date: This increased credit would apply to assessment years beginning on or after January 1, 2026.

Affected Parties and Impacts

  • Homeowners with qualified homesteads:
    • The annual property tax liability on their homestead would be reduced by $675 instead of $600.
  • County Assessors and Tax Collectors:
    • Will need software updates and system changes to implement the higher credit amount.
    • Must notify taxpayers and other stakeholders about the increased credit.
  • Taxpayer Community:
    • Will experience a higher credit upon filing or claim processing once implemented.

Fiscal and Administrative Implications

  • Fiscal Impact (as outlined in the supporting documents across two versions):
    • Estimated increased tax credits (non-general revenue impact):
    • CY 2027: roughly $39.8 million (or $52.99 million in one version).
    • CY 2028: roughly $40.4 million (or $53.78 million in one version).
    • The bill itself notes no general revenue impact.
    • The credit expansion is funded through the property tax system rather than general appropriations.
  • Implementation:
    • Requires updates to assessment and tax collection software.
    • Adequate lead time provided for implementation.
    • Administrative communications will be necessary to inform taxpayers and county offices.

Note: The two fiscal impact statements (slightly differing figures) originate from different formal analyses but converge on the conclusion that the credit increases the tax credit amount without drawing general revenue, with notable annual cost to the tax credit system beginning in 2027.

Procedural and Timeline Details

  • HR 1006 is a House Resolution authorizing the introduction of the nonappropriation bill (i.e., a bill to be introduced later, not attached to a fiscal appropriation).
  • Effective date aligned with assessment years beginning January 1, 2026.
  • Procedural history:
    • Filed April 8, 2026.
    • Read and referred to the House Rules Committee.
    • Reported out with a Do Pass recommendation (April 15, 2026).
    • Read and adopted by the House (April 16, 2026).

Summary Takeaway

HR 1006 seeks to raise the annual Homestead Property Tax Credit from $600 to $675, effective for 2026 assessment years and onward. The change is designed to reduce homeowners’ real property tax bills further, with fiscal impacts borne within the property tax system and without affecting general revenue. Implementation will require county-level software updates and targeted communications to taxpayers.

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

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