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HB 1775

TO PROHIBIT THE SEPARATE VALUATION AND ASSESSMENT OF AN ACCESSORY DWELLING UNIT FOR PURPOSES OF PROPERTY TAXES; AND TO AMEND THE METHOD OF VALUATION FOR CERTAIN RESIDENTIAL PROPERTY UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5.

2025 Regular Session Introduced by Robin Lundstrum and 1 co-sponsor

House Bill 1775 simplifies property tax for homeowners with accessory dwelling units by requiring single parcel valuation, easing tax assessments starting in 2026.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1775

Summary of House Bill 1775 (HB 1775)

Purpose and Intent

House Bill 1775 (HB 1775) was introduced to amend property tax regulations in Arkansas concerning accessory dwelling units (ADUs). The primary intent of the bill was to prohibit the separate valuation and assessment of ADUs from the primary residence for property tax purposes. This change aimed to simplify the property tax assessment process for homeowners who have ADUs on their property.

Key Provisions

  • Single Parcel Valuation: The bill mandates that residential properties, which serve as the principal place of residence for the owner, including any accessory dwelling units, must be valued and assessed as a single parcel. This means that ADUs cannot be subdivided into separate parcels for tax assessment.

  • Definition of Accessory Dwelling Unit: An ADU is defined as a secondary dwelling unit that:

    • Is located on the same parcel as the primary single-family residence.
    • Is independent of and smaller than the primary residence.
    • Is owned by the same person as the primary residence.

  • Effective Date: The provisions of HB 1775 were set to take effect for assessment years beginning on or after January 1, 2026.

Impact

  • Taxpayer Impact: Homeowners with ADUs would be assessed for property taxes on the entire residential property as a single unit, potentially simplifying their tax obligations.

  • Local Government Impact: While the bill was projected to have no significant impact on state revenues, there could be a minimal effect on local property tax collections.

  • Administrative Changes: County assessors would need to adjust their practices, as they would no longer be able to list ADUs as separate dwellings. This would require education and training for assessors and their staff, as well as updates to existing guidance.

Procedural Aspects

  • Legislative Journey: HB 1775 was filed on March 13, 2025, and was read and referred to the Committee on Revenue & Taxation. However, the bill ultimately died in the House Committee at Sine Die adjournment on May 5, 2025.

Conclusion

While HB 1775 aimed to streamline property tax assessments for homeowners with accessory dwelling units, it did not progress past the committee stage. The proposed changes would have simplified the valuation process and potentially reduced administrative burdens for both taxpayers and local assessors.

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

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