Arkansas lawmakers review acreage limitations for disabled veterans' property tax benefits

A significant discussion unfolded during the Senate Revenue & Tax meeting on March 19, 2025, focusing on property tax implications for disabled veterans in Arkansas. The committee addressed concerns regarding the acreage limit for homestead exemptions, which had been reduced to 40 acres, impacting many veterans who own larger parcels of land.

Paul Gearing from the Department of Finance and Administration (DFA) clarified that the previous legislation aimed to standardize acreage limits across the state but inadvertently affected disabled veterans more than anticipated. Many veterans, particularly those with 100% disability ratings, found themselves facing increased property taxes due to the new limit, which did not accommodate their larger homesteads.

Senator Dismay raised questions about the disparities in acreage assessments across counties, noting that some counties had previously allowed higher acreage for homestead exemptions. The committee discussed the potential for grandfathering in veterans who had previously qualified for larger exemptions, acknowledging the financial burden of surveying land to comply with the new regulations.

The conversation highlighted the need for a balanced approach that considers the unique circumstances of disabled veterans while ensuring uniformity in tax regulations. As the committee concluded, there was a clear call for further evaluation of the impact on affected individuals and a push for a solution that alleviates the financial strain on veterans.

The outcome of this discussion could lead to legislative changes aimed at restoring fair tax treatment for disabled veterans, with potential revisions to the acreage limits under consideration in future sessions.