Committee passes bill to stop listing estimated future taxes on property listings

State Representative Robin Lundstrom introduced legislation requiring that property listings not display outdated capped tax dollar amounts and instead direct prospective buyers to contact the local assessor for current tax liability information.

Washington County Assessor Russell Hill told the committee assessors have seen large market increases in recent years that make advertised tax amounts misleading to buyers. “When that property changes hands, it goes to the full value the following year,” Hill said, explaining that Amendment 79 caps apply to continuing owners but not to new buyers; new owners are reassessed at full value the next year.

Hill gave committee members an anecdote: a recent buyer told him the mortgage company raised monthly payments after closing because the property tax bill increased substantially following reassessment. Assessors said the proposed change is a simple consumer‑education measure intended to reduce “sticker shock” at closing and encourage buyers to contact the assessor’s office to calculate their likely tax bill.

Lindsay French of the Association of Arkansas Counties testified in support of the bill, saying it would let buyers plan ahead and avoid being blindsided by higher post‑purchase tax bills.

The committee approved the bill on a voice vote. The sponsor asked for a favorable report.

Why it matters: With rapidly rising property values in parts of the state, buyers who rely on seller‑provided tax numbers can encounter substantially higher tax bills after purchase because caps that benefited prior owners do not transfer. The bill aims to make tax information more accurate at the point of sale by steering buyers to assessors for the current calculation.

What’s next: The bill passed the committee and will move forward in the legislative process.