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1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1399
4
5 By: Representative Richmond
6 By: Senator G. Stubblefield
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING THE ISSUANCE OF
10 DONATION DEEDS AND HOMESTEAD DONATION DEEDS BY THE
11 COMMISSIONER OF STATE LANDS; AND FOR OTHER PURPOSES.
12
13
14 Subtitle
15 TO AMEND THE LAW CONCERNING THE ISSUANCE
16 OF DONATION DEEDS AND HOMESTEAD DONATION
17 DEEDS BY THE COMMISSIONER OF STATE
18 LANDS.
19
20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
21
22 SECTION 1. Arkansas Code � 18-60-212(a), concerning the recovery of
23 lands held under tax title, is amended to read as follows:
24 (a) No action for the recovery of any lands or for the possession
25 thereof against any person, or his or her heirs or assigns, who may hold such
26 lands by virtue of a purchase thereof at a sale by the collector or
27 Commissioner of State Lands, for the nonpayment of taxes, or who may have
28 purchased them from the state by virtue of any act providing for the sale of
29 lands forfeited to the state or the nonpayment of taxes, or who may hold the
30 land under a donation deed from the state, shall be maintained unless it
31 appears that the plaintiff, his or her ancestors, predecessors, or grantors
32 were seized or possessed of the lands in question within two (2) years next
33 before the commencement of the action.
34
35 SECTION 2. Arkansas Code � 18-61-106(a), concerning the recovery of
36 lands held under tax title, is amended to read as follows:
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1 (a) No action for the recovery of any lands or for the possession
2 thereof against any person or persons, their heirs and assigns, who may hold
3 such lands by virtue of a purchase thereof at a sale by the collector, or the
4 Commissioner of State Lands, for the nonpayment of taxes, or who may have
5 purchased the lands from the state by virtue of any act providing for the
6 sale of lands forfeited to the state for the nonpayment of taxes, or who may
7 hold the land under a donation deed from the state, shall be maintained,
8 unless it appears that the plaintiff, his or her ancestors, predecessors, or
9 grantors, was seized or possessed of the lands in question within two (2)
10 years next before the commencement of the suit or action.
11
12 SECTION 3. Arkansas Code � 19-6-301(76), concerning the enumeration of
13 special revenues, is amended to read as follows:
14 (76)(A) Commissioner of State Lands fees, including patent fees,
15 as enacted by Acts 1883, No. 117, � 21-6-203;
16 (B) Deed fees, as enacted by Acts 1931, No. 245, � 22-5-
17 408;
18 (C) Donation deed fees, as enacted by Acts 1883, No.
19 117, � 21-6-203;
20 (D) Field notes and plats fees, as enacted by Acts 1881,
21 No. 12, �� 22-5-701 and 22-5-702;
22 (E)(D) Certificate of donation to forfeited land fees, as
23 enacted by Acts 1883, No. 117, � 21-6-203; and
24 (F)(E) Those fees as specified in Acts 1983, No. 886, �
25 21-6-203;
26
27 SECTION 4. Arkansas Code Title 20, Chapter 80, Subchapter 4, is
28 repealed.
29 Subchapter 4 -- Commissioner of State Lands Urban Homestead Act
30
31 20-80-401. Title.
32 This subchapter shall be known as the "Commissioner of State Lands
33 Urban Homestead Act".
34
35 20-80-402. Purpose.
36 (a) This subchapter shall apply only to urban property and shall be
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1 established to prevent waste of valuable real property already offered for
2 public sale and not disposed of which has been certified to the office of the
3 Commissioner of State Lands for nonpayment of ad valorem real property taxes.
4 (b) The further intent of this section is to provide cities,
5 incorporated towns, legal entities that intend to apply for an award of low-
6 income housing tax credits under section 42 of the Internal Revenue Code, and
7 community organizations the ability to better serve any eligible person in
8 need of a homestead and to provide the eligible person the opportunity to
9 hold and maintain a private residence, and to contribute to the taxing
10 structure of the applicable taxing units.
11
12 20-80-403. Definitions.
13 As used in this subchapter, unless the context otherwise requires:
14 (1) "Applicant" means any city, incorporated town, legal entity
15 that intends to apply for an award of low-income housing tax credits under
16 section 42 of the Internal Revenue Code, or community organization applying
17 to the Commissioner of State Lands for donation of tax-forfeited land;
18 (2)(A) "Community organization" means a recreational,
19 educational, social, or benevolent organization dedicated to improving the
20 mental or physical health and welfare of its members and of the public.
21 (B) A community organization may be established for
22 community betterment or beautification, environmental protection,
23 establishment of housing, and other purposes beneficial to the community and
24 may be a division of the federal, state, county, or local government or may
25 be a private nonprofit corporation;
26 (3) "Eligible person" means an individual person or family unit
27 meeting eligibility criteria for the sale, lease, or grant of a homestead. A
28 corporation, partnership, association, or similar organization shall not be
29 an eligible person;
30 (4) "Homestead" means the home and accompanying or adjoining
31 land of the primary residence of a person; and
32 (5) "Urban" means land found within the city limits of any city
33 or incorporated town in the state.
34
35 20-80-404. Duties of Commissioner of State Lands.
36 (a) All land subject to donation under this subchapter must have been
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1 offered for sale to the highest bidder by the Commissioner of State Lands
2 pursuant to � 26-37-101 et seq.
3 (b) After the Commissioner of State Lands has met the requirements of
4 � 26-37-101 et seq., the Commissioner of State Lands may accept applications
5 for donation of remaining tax-forfeited urban property.
6 (c) The Commissioner of State Lands shall prescribe the requisite
7 contracts, forms, or applications.
8
9 20-80-405. Applications for donations.
10 (a)(1) Applications for donation may be made by the following persons
11 or community organizations:
12 (A) Agents of cities and incorporated towns that also have
13 one (1) of the community organizations listed in subdivisions (a)(1)(B)(i)-
14 (iv) of this section; or
15 (B) The chair of the board or executive director of one
16 (1) of the following community organizations:
17 (i) A housing authority;
18 (ii) A community development agency;
19 (iii) A community development corporation; or
20 (iv) A local initiative support corporation.
21 (2) Other community organizations may apply for donation of the
22 land so long as that organization is a nonprofit corporation that qualifies
23 as an Internal Revenue Service section 501(c)(3) tax-exempt organization.
24 (3) A legal entity that intends to apply for an award of federal
25 low-income housing tax credits under section 42 of the Internal Revenue Code
26 may apply for donation of land under this subchapter only if the legal entity
27 is a qualified nonprofit organization pursuant to section 42 of the Internal
28 Revenue Code and accompanying regulations and guidance of the Internal
29 Revenue Service.
30 (b) Any applicant must have legal authority to accept and convey title
31 to properties for homesteading purposes.
32
33 20-80-406. Disposition of applications -- Prior municipal approval.
34 (a) The Commissioner of State Lands may accept, modify, or deny any
35 application.
36 (b) Before the Commissioner of State Lands may donate any parcel to
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1 any applicant, other than agents of a city or incorporated town, the city or
2 town shall grant express approval of the donation, thereby avoiding possible
3 conflicts in planning or development projects overseen by the cities or towns
4 of this state.
5
6 20-80-407. Contracts or deeds.
7 (a)(1) Accepted applications will result in a contract or limited
8 warranty donation deed between the Commissioner of State Lands and the
9 applicant for donation of tax-forfeited lands.
10 (2) The contract or deed, to be provided by the Commissioner of
11 State Lands, shall provide that the applicant will have primary
12 responsibility for the development of the donated parcel.
13 (3) The contract or deed shall also set out the eligiblity
14 criteria for determining an eligible person with respect to a sale, lease, or
15 grant of a homestead from the donated parcel and shall require the applicant
16 to follow the eligiblity criteria in making sales, leases, or grants from the
17 donated parcel.
18 (b) Upon execution of a donation deed to the applicant, the
19 Commissioner of State Lands may no longer be an immediate party to the
20 construction or maintenance of the parcel, except that the contract or
21 donation deed may contain a possibility of reverter to the Commissioner of
22 State Lands should the proposed homestead, for any reason, not develop
23 pursuant to specifications.
24 (c) In addition, the contract or deed may provide the time period
25 within which the property may be developed.
26
27 20-80-408. Taxes -- Liens -- Encumbrances.
28 (a) With execution of the donation deed, the Commissioner of State
29 Lands may waive outstanding taxes, penalties, and interest within the
30 authority of the office of the Commissioner of State Lands.
31 (b) Other liens or encumbrances attached to the property not within
32 the authority of the Commissioner of State Lands pursuant to � 26-37-101 et
33 seq. will be considered a matter to be resolved between the applicant and the
34 lienholder.
35
36 20-80-409. Title transfer -- Consideration -- Costs.
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1 (a) No consideration shall be required for the transfer of title
2 between the Commissioner of State Lands and the applicant, except one dollar
3 ($1.00).
4 (b) Additional, actual costs associated with the conveyance,
5 including, but not limited to, abstracting, researching, confirmation of
6 title, and the filing of documents with the county, may be charged to the
7 applicant by the Commissioner of State Lands.
8
9 20-80-410. Development.
10 (a)(1) Development of the donated parcel shall be strictly for the
11 construction or maintenance of a homestead for eligible persons.
12 (2) Upon completion of the construction of the home, the city,
13 incorporated town, or community organization may sell, lease, or grant the
14 home to any eligible person.
15 (b)(1) The homestead is to be used strictly for the private residence
16 of the eligible person.
17 (2) The sale, lease, or grant of the home shall be a transaction
18 between the applicant and the eligible person.
19
20 20-80-411. Restrictions -- Taxes.
21 (a) The applicant is responsible for transferring the donated parcel
22 to an eligible person.
23 (b) The eligibility criteria for the sale, lease, or grant of a
24 homestead shall be established by the Commissioner of State Lands and shall
25 take into account the income of the person or family unit, which shall not
26 exceed the median family income, as determined by the United States
27 Department of Housing and Urban Development, for the area in which the
28 applicant is located.
29 (c) Upon transferring the land to the eligible person, the homestead
30 will be treated as any other private residence and subject to all laws,
31 rules, and regulations of the government, including the payment of real
32 property taxes.
33
34 20-80-412. Public school development.
35 (a) A donated parcel of land held by a community organization under
36 this subchapter may be used for educational purposes by a public school
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1 district or open-enrollment public charter school if:
2 (1) The donated parcel of land is in a census tract with a
3 poverty rate higher than the average poverty rate in the State of Arkansas;
4 (2) The community organization received the donated parcel of
5 land from the Commissioner of State Lands at least three (3) years earlier;
6 (3) An eligible person does not currently use the donated parcel
7 of land for a homestead; and
8 (4) The proposed activities or uses are not prohibited by any
9 use restrictions that were placed on the property for the purpose of
10 protecting:
11 (A) Human health; or
12 (B) The integrity of any remedial action measures
13 implemented on the property to protect human health or the environment.
14 (b) A community organization that receives a donated parcel of land
15 may transfer the donated parcel of land to a recipient that shall use the
16 donated parcel of land for development by a public school district or an
17 open-enrollment public charter school.
18 (c) Once a public school district or an open-enrollment public charter
19 school begins to use a donated parcel of land under this section for
20 educational purposes, the donated parcel of land shall be released from
21 present and future obligations, restrictions, and reversions imposed on the
22 use and development of the donated parcel of land, except as provided by
23 subdivision (a)(4) of this section.
24 (d) Taxes from previous tax years shall not apply to a donated parcel
25 of land utilized by a public school district or an open-enrollment public
26 charter school under this section.
27
28 SECTION 5. Arkansas Code � 26-38-103(a), concerning the release of
29 overdue tax lands sold to state under Acts 1881, No. 39, is amended to read
30 as follows:
31 (a) As to all lands in the State of Arkansas which were sold to the
32 state under the provisions of an act to enforce the payment of overdue taxes,
33 Acts 1881, No. 39, approved March 12, 1881 [repealed], and an act amendatory
34 thereto, approved March 22, 1881, to which the Commissioner of State Lands
35 has executed deeds of donation, deeds of sale, or deeds of relinquishment,
36 the state does release its title in favor of the grantees in these deeds,
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1 their heirs, successors, and assigns forever. As to all these lands that have
2 not been disposed of by the Commissioner of State Lands as indicated but
3 which have been placed back upon the tax books of the counties wherein the
4 lands lie, and the taxes have been paid thereon for more than seven (7) years
5 since they were sold to the state under the provisions of these acts, the
6 state does release all of its title. These provisions apply whether the lands
7 were certified by the commissioner of the court to the county clerk of the
8 county, as required by these acts, or not, and also to apply whether the
9 lands were certified by the county clerk to the Office of the Commissioner of
10 State Lands, or not.
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8 02/04/2025 11:14:18 AM JLL135Every fact on this page links to its source, starting with the official bill record.