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Sponsor withdraws property-tax transfer bill after lengthy debate and assessor testimony
Summary
Representative Robin Lundstrom withdrew House Bill 1715, a proposal to have buyers inherit sellers' capped assessed values, after committee questions and testimony from a speaker citing constitutional and fiscal concerns about the measure's impact on school funding and valuation equity.
Representative Robin Lundstrom introduced House Bill 1715 to allow a buyer of a residence to inherit the seller's capped assessed value—effectively transferring the seller's homestead assessment status to the purchaser and continuing the annual 5% (homestead) or 10% (nonhomestead) caps thereafter. Lundstrom argued the bill could make properties in stagnant or blighted areas more marketable and help some buyers enter homeownership.
Assessors' concerns and constitutional constraints were raised at the hearing. Lindsay French, who spoke during the opposition testimony, summarized the assessors' position and cited Arkansas Constitution Article 16, Section 5 and Section 15(a), and Amendment 79. French told the committee those constitutional provisions require property to be taxed according to value and that the current system caps homestead increases at 5% (10% for nonhomestead) and freezes assessed value for taxpayers over 65 or disabled. She warned HB1715 would extend the effect of those freezes to buyers in perpetuity (other than annual 5%/10% caps) and said that would lead to unequal valuation of similar properties and a long-term decline in property tax revenues used largely to fund local schools.
Committee members asked multiple technical questions about reappraisals, the effect on marketing and fairness when a buyer inherits a seller's frozen value, and how disabled-veteran exemptions would be handled. Sponsor Lundstrom said reappraisals occur every four years but acknowledged assessors and some members disagreed on downstream effects. After extended discussion and offers to work with stakeholders and to review suggested language, Representative Lundstrom withdrew the bill to pursue further discussions and possible revisions outside the committee.
Testimony and committee remarks focused on constitutional restraints, local school funding reliance on property tax revenue, and the potential for uneven long-term effects across counties; no committee vote was taken.
