Association of Arkansas Counties applauds Governor's move to increase Homestead Tax Credit
According to the Governor’s estimate, the $25 increase will save Arkansas homeowners $18 million annually.
LITTLE ROCK — The Association of Arkansas Counties (AAC) was pleased to learn this morning that Governor Asa Hutchinson will support legislation in 2019 to increase the state’s Homestead Property Tax Credit from $350 to $375. According to the Governor’s estimate, this increase will save Arkansas homeowners $18 million annually.
“We are glad to see this money going back to the taxpayers,” said AAC Executive Director Chris Villines. “This increase in the credit will be overwhelmingly popular among homeowners in Arkansas — and those who administer our property tax system, namely assessors and collectors.”
The state uses monies from the Property Tax Relief Trust Fund to reimburse counties for the cost of issuing Homestead Tax Credits. The trust fund, which can be used only to provide tax relief, has grown to $78 million.
The AAC has been in communication since early this year with the Governor and his staff regarding the rise in the trust fund and asked the Governor to consider supporting an increase in homestead credit.
“We are grateful to the Governor for hearing and acting upon our request. His goal aligns with our goal — to provide relief to our citizens. We are thankful for the spirit of cooperation our county officials enjoy with the Governor,” Villines said. AAC Governmental Affairs Director Josh Curtis, who also serves as liaison to the Arkansas County Tax Collectors Association, said “collectors look forward to implementing this proposed tax cut by the Governor.”
Approximately 716,000 parcels in the state receive the Homestead Tax Credit. “The residents of Arkansas are hard-working people. It’s refreshing to see the Governor recognize this and reward Arkansas taxpayers who helped grow the economy, making this increase in the homestead credit possible,” said AAC Legal Counsel Lindsey Bailey, who is liaison to the Arkansas County Assessor’s Association.