AR SB645

Amends Arkansas Code § 14-92-232 to establish rules for suburban improvement districts managing real property acquired through foreclosure, quitclaim deed, gift, bequest, or arms-length transaction.

Real property titled in a suburban improvement district name is classified as public property held for a public purpose if the district is not using the property in a proprietary manner.

A district uses property in a proprietary manner if it intends to sell for more than lost assessments, lease for more than lost assessments, or generate income solely for the district's benefit.

Property is not considered proprietary use if proceeds are intended to replace lost assessments or reimburse the district's costs, fees, and expenses in obtaining title to the property.

Real property held by a suburban improvement district is exempt from ad valorem taxes and shall be removed from tax rolls upon the district's application under oath stating it does not intend proprietary use.