TO AMEND THE LAW CONCERNING THE ASSESSMENT OF PROPERTY; TO AMEND THE LAW CONCERNING SUBSTANTIAL IMPROVEMENTS TO REAL PROPERTY; AND TO AMEND THE METHOD OF VALUATION FOR REAL PROPERTY UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5.

HB 1386 amends Arkansas property tax laws to change how real estate is valued for assessment. It replaces "square footage" with "assessed value" in calculations, prevents higher property values from counting disaster repairs using superior materials, and limits consideration of out-of-state commercial properties when comparable local options exist. These changes directly affect all Arkansas property owners and local assessors by altering how tax bills are calculated. The bill focuses on refining valuation methods under the state constitution, ensuring assessments reflect fair market value more accurately. It became law as Act 410 on March 25, 2025.