TO AMEND THE METHOD OF VALUATION UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5, BY DEFINING THE TERMS USED IN THE ESTABLISHED METHODS OF VALUATION FOR PURPOSES OF PROPERTY TAX.

Fiscal Impact Statement Bill: SB573 Bill Subtitle: TO AMEND THE METHOD OF VALUATION UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5, BY DEFINING THE TERMS USED IN THE ESTABLISHED METHODS OF VALUATION FOR PURPOSES OF PROPERTY TAX. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Sens. Petty and Caldwell Rep. Jean Basic Change: SB573 provides definitions to be used in the valuation of property for ad valorem taxes. Under Article 16, § 5 of the Arkansas Constitution, all real and personal property is taxed according to its value. SB573 provides definitions to be used in the valuation of property for ad valorem taxes, including: • Cost approach; • Economic life; • Economic obsolescence; • Fair Market value; • Functional obsolescence; • Income approach; • Market approach; • Physical deterioration; • Physical life; and • Useful life. SB573 is effective for assessment years beginning on or after January 1, 2025. Fiscal Impact: No impact to state revenues. Unknown impact to property tax collections. Taxpayer Impact: Definitions will be provided for terms used in valuation for property tax purposes