AR HB1321

Increases the homestead property tax credit from $350 to $375 per assessment year for each property owner's homestead, effective for assessment years beginning January 1, 2019 or later.

Requires the Senate Committee on Revenue and Taxation and House Committee on Revenue and Taxation to study jointly the homestead property tax credit amount and the sales and use taxes that fund the credit.

Establishes a proposed formula for calculating the homestead property tax credit annually by December 31, based on the Property Tax Relief Trust Fund balance, eligible homestead parcels, and rounding mechanisms with increments of $25.00.

Requires county assessors to certify eligible homestead parcels by December 1 annually, and the Director of Finance and Administration to calculate and certify the credit amount by December 31, with a minimum credit floor of $300.

Sets a maximum homestead property tax credit cap of $75.00 per the rounding formula, with the credit amount added to the amount in effect on October 15 of each year.