Arkansas lawmakers propose constitutional amendment to limit property tax increases

A proposed amendment to the Arkansas Constitution, House Joint Resolution 1012, aims to give residents greater control over property tax increases. Introduced on February 10, 2025, the resolution seeks to amend Amendment 79, which governs property tax assessments, by capping annual increases in assessed property values to a maximum of 10% unless significant changes occur to the property.

The bill's primary intent is to empower Arkansas homeowners by stabilizing property tax assessments, ensuring that increases are manageable and predictable. Under the proposed changes, if a property’s assessed value rises due to a county-wide reappraisal, the increase would be limited to 10% of the previous year's value for non-homestead properties. This provision aims to protect taxpayers from sudden spikes in property taxes that can arise from market fluctuations.

Debate surrounding HJR1012 has already begun, with proponents arguing that it will provide much-needed relief to homeowners facing rising costs. Critics, however, express concerns that such limitations could hinder local governments' ability to fund essential services, as property taxes are a significant revenue source. The resolution does not apply to new constructions or substantial improvements, which some argue could create inequities in tax burdens among property owners.

The implications of this amendment could be far-reaching, potentially reshaping the landscape of property taxation in Arkansas. Experts suggest that if passed, it could lead to a more stable housing market, but also warn of potential funding shortfalls for local services that rely on property tax revenue. As discussions continue, the resolution's fate remains uncertain, but it has already sparked significant interest among Arkansas residents and lawmakers alike.