The Revenue & Tax Committee approved House Bill 1691, which expands an existing property-tax exemption for charitable uses to include leased motor vehicles that are used exclusively for a public-charity purpose.

Senator Dave Wallace presented the bill and explained that current law exempts buildings and materials used solely for public charity, and that motor vehicles owned and used exclusively by charities already qualify for exemption. "What this bill changes is it clarify clarifies and expands the tax exemption, to include motor vehicles that are leased," Wallace said, adding the bill aligns private nonprofit leasing with state and local government practice on lease versus buy decisions.

Paul Gehring of DFA told the committee the statutory language references the Arkansas constitutional exemption for charitable organizations; he noted that charitable status is not strictly synonymous with 501(c)(3) federal designation. "They may take the form of a 501(c)(3), but not necessarily," Gehring said, explaining that some churches or state-registered nonprofits could qualify as charitable without federal designation.

DFA reported no state revenue impact for the change, but committee members noted that local property-tax collections for cities and counties could be affected. Senator Crowell moved to pass the bill; Senator Boyd seconded, and the committee approved the measure on a voice vote.