HB1129
To Amend The Definition Of "homestead" For The Purpose Of The Property Tax Exemption For Disabled Veterans, Surviving Spouses, And Minor Dependent Children.
AI-Generated Summary
This bill, House Bill 1129, proposes to amend existing Arkansas law regarding property tax exemptions for disabled veterans, surviving spouses, and minor dependent children. Specifically, it seeks to modify the definition of "homestead" as it pertains to this exemption. The current definition includes the dwelling occupied as a principal residence and up to forty (40) acres of contiguous real property not used for commercial purposes. The bill proposes to increase the acreage allowed under the homestead definition from forty (40) acres to one hundred sixty (160) acres. This change aims to expand the scope of property that can be included in the tax-exempt homestead for eligible individuals. The amendment is intended to provide a broader property tax benefit to disabled veterans and their families. The act is effective for assessment years beginning on or after January 1, 2025. This legislation does not appear to introduce new exemptions but rather expands an existing one.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be disabled veterans, surviving spouses of disabled veterans, and minor dependent children of disabled veterans who are eligible for property tax exemptions in Arkansas. By increasing the amount of contiguous real property that qualifies as a "homestead" from forty (40) acres to one hundred sixty (160) acres, these individuals may be able to exempt a larger portion of their property from taxation, potentially leading to reduced property tax burdens. This expansion could be particularly beneficial for those living on larger rural properties.
Who Might Suffer?
The entities most likely to be negatively impacted by this bill are local governments and school districts within Arkansas that rely on property tax revenue. By expanding the definition of "homestead" for property tax exemptions, a larger amount of property will become exempt from taxation. This reduction in the taxable property base could lead to a decrease in overall property tax collections for these governmental entities, potentially affecting their ability to fund public services such as schools, infrastructure, and local administration. The extent of this impact would depend on the number of eligible individuals who own property exceeding the current forty (40) acre limit.