AR SB442

Adds Arkansas Code § 6-21-118 to clarify that public school buildings are exempt from taxation under Arkansas Constitution Article 16, § 5, whether owned or leased by public school districts or open-enrollment public charter schools.

Defines "public school buildings" as school buildings, apparatus, libraries, and grounds used exclusively for school purposes by public school districts or open-enrollment public charter schools.

For lease-purchase agreements, lessors must file the agreement with the county recorder; if the agreement is terminated, the lessor must pay the last 3 years of property taxes owed on the building.

For other lease agreements below fair market value, lessors must present evidence to the county assessor that the lease discount equals or exceeds the amount that would have been collected in taxes if the building were not exempt.

Lessors may appeal county assessor determinations to county court and then to circuit court, and must notify the county assessor if a public school building no longer meets exemption requirements.