An act TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT 10 FROM TAXATION, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas          As Engrossed: H3/19/25
2 95th General Assembly
                                   A Bill

3 Regular Session, 2025                                         HOUSE BILL 1691

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5 By: Representative Torres

6 By: Senator D. Wallace

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8                            For An Act To Be Entitled

9   AN ACT TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT

10  FROM TAXATION; TO PROVIDE THAT CERTAIN MOTOR VEHICLES

11  USED EXCLUSIVELY FOR PUBLIC CHARITY ARE EXEMPT FROM

12  PERSONAL PROPERTY TAX; AND FOR OTHER PURPOSES.

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15                           Subtitle

16                       TO PROVIDE FOR CERTAIN PROPERTY TO BE

17                       EXEMPT FROM TAXATION; AND TO PROVIDE

18                       THAT CERTAIN MOTOR VEHICLES USED

19                       EXCLUSIVELY FOR PUBLIC CHARITY ARE

20                       EXEMPT FROM PERSONAL PROPERTY TAX.

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22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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24  SECTION 1. DO NOT CODIFY. Legislative findings.

25  The General Assembly finds that:

26  (1) Arkansas Constitution, Article 16, � 5, provides that

27 buildings, grounds, and materials used exclusively for public charity

28 purposes are exempt from property tax;

29  (2) The Assessment Coordination Division has recognized that

30 motor vehicles owned by public charities and used exclusively for the

31 purposes of public charity are exempt from personal property tax as materials

32 of public charity;

33  (3) The General Assembly has provided flexibility for the state

34 and local governments to determine if a vehicle belonging to the state or a

35 local government should be leased or purchased;

36  (4) A motor vehicle as defined in � 26-52-103 that belongs to

    *JLL270*                                                    03-19-2025 14:18:15 JLL270
    As Engrossed: H3/19/25                                                 HB1691

1 the state or a local government and is subject to a lease of at least twelve

2 (12) months is exempt from taxation; and

3   (5) For the purpose of the personal property tax exemption, the

4 General Assembly should extend the same flexibility to public charities to

5 determine if a motor vehicle that belongs to a public charity and is used

6 exclusively for purposes of the public charity should be leased or purchased.

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8   SECTION 2. Arkansas Code � 26-3-301(7), concerning property that is

9 exempt from tax, is amended to read as follows:

10  (7) All buildings belonging to institutions of purely public

11 charity, together with the land actually occupied by these institutions, not

12 leased or otherwise used with a view to profit, and all moneys and credits

13 appropriated solely to sustaining, and belonging exclusively to, these

14 institutions, and motor vehicles, as defined in � 26-52-103, that are used

15 exclusively for purposes of public charity and are subject to a lease of at

16 least twelve (12) months by an institution of public charity;

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18  SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective for

19 assessment years beginning on or after January 1, 2026.

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21                          /s/Torres

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