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HB 1599

TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TAXATION.

2025 Regular Session Introduced by Randy Torres and 1 co-sponsor

HB 1599 sought to exempt motor vehicles leased by public charities from property tax, easing financial burdens and supporting community services, but was withdrawn.

WITHDRAWN BY AUTHOR
0
WeVote Research Nonpartisan
Bill Summary · HB 1599

Summary of House Bill 1599 (HB 1599)

Bill Overview

Title: To Provide for Certain Property to be Exempt from Taxation
Bill Number: HB 1599
Introduced: February 26, 2025
Status: Withdrawn by Author on March 11, 2025
Sponsors: Representative Torres and Senator D. Wallace

Purpose and Intent

House Bill 1599 aimed to expand property tax exemptions in Arkansas by including motor vehicles leased by public charities for a minimum term of one year. The intent was to alleviate financial burdens on charitable organizations, thereby supporting their operations and services to the community.

Key Provisions

  • Expansion of Exemptions: The bill proposed an amendment to Arkansas Code § 26-3-301(7) to include motor vehicles leased by institutions of purely public charity as exempt from property tax, provided the lease term is at least 12 months.
  • Current Exemptions: Under existing law, property owned by institutions of purely public charity, including buildings and land, is already exempt from ad valorem tax. HB 1599 sought to extend this exemption to leased vehicles.

Impact

Affected Parties

  • Public Charities: Organizations that lease motor vehicles for charitable purposes would benefit from reduced operational costs due to the exemption from property tax.
  • Counties: Local governments may experience a decrease in property tax revenue as a result of this exemption.

Fiscal Impact

  • State Revenue: The bill was projected to have no impact on state revenues.
  • County Revenue: Counties could see a reduction in property tax collections due to the new exemptions.

Implementation Considerations

  • Training Needs: Additional training for county assessors and personnel would be necessary to implement the new exemption policies effectively.
  • Policy Updates: County assessors would need to revise their office policies regarding exemption applications to accommodate the changes proposed in the bill.

Procedural Aspects

  • Effective Date: If enacted, the provisions of HB 1599 would have taken effect for assessment years beginning on or after January 1, 2026.
  • Legislative Actions: The bill was filed and referred to the Committee on Revenue & Taxation but was ultimately withdrawn by the author before further consideration.

Conclusion

While HB 1599 aimed to provide significant tax relief to public charities by exempting leased motor vehicles from property tax, it was withdrawn shortly after introduction, preventing any further legislative action or impact on Arkansas tax law.

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

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