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AR SB573
Bill
Status
4/18/2025
Primary Sponsor
Jim Petty
Click for details
AI Summary
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Establishes statutory definitions for property tax valuation methods under Arkansas Constitution Article 16, § 5, including the cost approach, income approach, and market/sales comparison approach
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Defines "fair market value" as the most probable price a property would bring in an open market transaction between willing, knowledgeable buyers and sellers at arm's length
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Codifies definitions for depreciation factors that reduce property value: physical deterioration (wear and tear), functional obsolescence (internal inefficiencies), and economic obsolescence (external factors like industry economics, regulations, or competition)
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Establishes definitions for economic life, physical life, and useful life to standardize how the lifespan of structures and property components is calculated for assessment purposes
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Effective for assessment years beginning on or after January 1, 2025; approved April 17, 2025
Legislative Description
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.
Last Action
Notification that SB573 is now Act 783
4/18/2025