Constitution of Arkansas (2025 publisher edition) — Amendment 79: [PROPERTY TAX RELIEF].

Publisher edition notice: This collection preserves the complete constitutional appendix of the Secretary of State’s 2025 Election Laws and Constitution compilation: its preamble, twenty original articles, schedule and 104 published amendments, including annotations and explicit repealed notices. Repealed notices remain historical publisher context. Later amendments have not been independently verified.

Amendment 79

AMEND. 79. [PROPERTY TAX RELIEF].
Publisher’s Notes. This amendment was proposed by
H.J.R. 1015 during the 1999 Regular Session and adopted
at the November 2000 general election by a vote of 502,882
for and 306,830 against.
This amendment was designated as Amendment 79 by
the Secretary of State and was known as Amendment No.
2 on the general election ballot for 2000: “An amendment to
limit the increase in the assessed value of a taxpayer’s real
property after a countywide reappraisal and to require a
property tax credit of at least three hundred dollars ($300)
on homestead property.” The bracketed heading was added
by the Publisher.
Effective Dates.
Ark. Const. Amend. 79, § 4: Jan. 1, 2001.
§ 1. [Assessing value of real property].
(a) After each county-wide reappraisal, as defined by law, and the resulting assessed value of
property for ad valorum tax purposes and after each Tax Division appraisal and the resulting
assessed value of utility and carrier real property for ad valorem tax purposes, the county
assessor, or other official or officials designated by law, shall compare the assessed value of each
parcel of real property reappraised or reassessed to the prior year’s assessed value. If the
assessed value of the parcel increased, then the assessed value of the parcel shall be adjusted
pursuant to this section.
(b)(1) If the parcel is not a taxpayer’s homestead used as the taxpayer’s principal place of
residence, then for the first assessment following reappraisal, any increase in the assessed value
of the parcel shall be limited to not more than ten percent (10%) of the assessed value of the
parcel for the previous year. In each year thereafter the assessed value shall increase by an
additional ten percent (10%) of the assessed value of the parcel for the year prior to the first
assessment that resulted from reappraisal but shall not exceed the assessed value determined by
the reappraisal prior to adjustment under this subsection. For utility and carrier real property,
any annual increase in the assessed value of the parcel shall be limited to not more than ten
percent (10%) of the assessed value for the previous year.
(2) This subsection (b) does not apply to newly discovered real property, new construction, or
to substantial improvements to real property.
722 Amend. 78, § 3 CONSTITUTION OF ARKANSAS

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(c)(1) Except as provided in subsection (d), if the parcel is a taxpayer’s homestead used as the
taxpayer’s principal place of residence then for the first assessment following reappraisal, any
increase in the assessed value of the parcel shall be limited to not more than five percent (5%) of
the assessed value of the parcel for the previous year. In each year thereafter the assessed value
shall increase by an additional five percent (5%) of the assessed value of the parcel for the year
prior to the first assessment that resulted from reappraisal but shall not exceed the assessed
value determined by the reappraisal prior to adjustment under this subsection.
(2) This subsection (c) does not apply to newly discovered real property, new construction, or
to substantial improvements to real property.
(d)(1)(A) A homestead used as the taxpayer’s principal place of residence purchased or
constructed on or after January 1, 2001 by a disabled person or by a person sixty-five (65) years
of age or older shall be assessed thereafter based on the lower of the assessed value as of the
date of purchase or construction or a later assessed value.
(B) When a person becomes disabled or reaches sixty-five (65) years of age on or after
January 1, 2001, that person’s homestead used as the taxpayer’s principal place of residence
shall thereafter be assessed based on the lower of the assessed value on the person’s sixty-fifth
birthday, on the date the person becomes disabled or a later assessed value.
(C) If a person is disabled or is at least sixty-five (65) years of age and owns a homestead
used as the taxpayer’s principal place of residence on January 1, 2001, the homestead shall be
assessed based on the lower of the assessed value on January 1, 2001 or a later assessed value.
(2) Residing in a nursing home shall not disqualify a person from the benefits of this
subsection (d).
(3) In instances of joint ownership, if one of the owners qualifies under this subsection (d), all
owners shall receive the benefits of this amendment.
(4) This subsection (d) does not apply to substantial improvements to real property.
(5) For real property that is subject to Section 2 of this Amendment in lieu of January 1, 2001,
the applicable date for this subsection (d) shall be January 1 of the year following the completion
of the adjustments to assessed value required by Section 2.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 2. [Effect of county-wide reappraisal — Public utility and carrier exception].
(a)(1) Section 1 of this Amendment shall not be applicable to a county in which there has been
no county-wide reappraisal, as defined by law, and resulting assessed value of property between
January 1, 1986 and December 31, 2000. Real property in such a county shall be adjusted
according to the provisions of this section.
(2) Upon the completion of the adjustments to assessed value required by this section each
taxpayer of that county shall be entitled to apply the provision of Section 1 of this Amendment
to the real property owned by them.
(b) The county assessor, or other official or officials designated by law, shall compare the
assessed value of each parcel of real property to the prior year’s assessed value. If assessed value
of the parcel increased, then the assessed value of the parcel for the first assessment resulting
from reappraisal shall be adjusted by adding one-third ( 1 ⁄3 ) of the increase to the assessed value
of the parcel for the previous year. An additional one-third (1⁄ 3) of the increase shall be added in
each of the next two (2) years. This adjustment procedure shall not apply to public utility and
carrier property. Public utility and carrier property shall be adjusted pursuant to Section 1.
(c) No adjustment shall be made for newly discovered real property, new construction, or to
substantial improvements to real property.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
723 Amend. 79, § 2 [PROPERTY TAX RELIEF]

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§ 3. [Annual state credit].
The General Assembly shall provide by law for an annual state credit against ad valorem
property tax on a homestead in an amount of not less than three hundred dollars ($300). The
credit shall not exceed the amount of ad valorem property taxes owed. The credit shall apply
beginning for taxes due in calendar year 2001. This section shall be applied in a manner that
would not impair a bond holder’s interest in ad valorem debt service revenues.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 4. [Income adjustments — Personal property millage rate — Uniform property tax
rate requirement — Reassessment — Rollback adjustments].
(a) The General Assembly shall, by law, provide for procedures to be followed with respect to
adjusting ad valorem taxes or millage pledged for bonded indebtedness purposes, to assure that
the tax or millage levied for bonded indebtedness purposes will, at all times, provide a level of
income sufficient to meet the current requirements of all principal, interest, paying agent fees,
reserves, and other requirements of the bond indenture.
(b) The millage rate levied against taxable personal property and utility and regulated carrier
property in each taxing unit in the state shall be equal to the millage rate levied against real
property in each taxing unit in the state. Personal property millage rates currently not equal to
real estate millage rates shall be reduced to the level of the real estate millage rate; except to the
extent necessary to provide a level of income sufficient to meet the current requirements of all
principal, interest, paying agent fees, reserves, and other requirements of the bond indenture.
(c) The provisions of this section shall not affect or repeal the required uniform rate of ad
valorem property tax set forth in Amendment 74.
(d) The General Assembly may, by law, prescribe the method and means for reassessing real
property and establish the frequency of reassessment. However, reassessment shall occur at least
once every five (5) years.
(e) Rollback adjustments under Article 16, Section 14 shall be determined after the adjust-
ments are made to assessed value under this Amendment.
Publisher’s Notes. The bracketed heading was added
by the Publisher.