TO LIMIT THE INCREASE IN THE ASSESSED VALUE OF REAL PROPERTY AFTER A SALE OR OTHER TRANSFER OF REAL PROPERTY.

House Bill 1715 proposes to limit the increase in the assessed value of real property following its sale or transfer in Arkansas. For a taxpayer's homestead used as their principal residence, the first assessment after a sale would be limited to a maximum increase of 5% above the previous owner's taxable value. For all other types of real property, this limit would be 10% above the seller's taxable value. This change would directly affect new property owners by capping the initial increase in their property's assessed value for tax purposes. The bill, if enacted, would take effect for assessment years starting on or after January 1, 2026.