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.

Senate Bill 573 (Act 783) defines various terms used in the valuation of property for tax assessment purposes in Arkansas. This legislation clarifies the established methods of property valuation, directly affecting property owners and tax assessors by providing clear standards for determining property values. It specifies definitions for terms such as "fair market value," "cost approach," "income approach," and different types of obsolescence (economic, functional, physical deterioration). These definitions aim to ensure a consistent approach to property tax assessments, taking effect for assessment years beginning on or after January 1, 2025.