New Homestead Tax Credit Will Deduct $100 This Year

RISON - With the Cleveland County School District proposing a 6-mill tax increase, options for property owners to save on their tax bill have been discussed during the district's community meetings, including the one held Monday night at Kingsland.Superintendent Davy King noted during each of the meetings that property owners in Arkansas will see their property taxes decrease by $100 this year thanks to legislation increasing the state's homestead tax credit from $500 to $600. The higher tax credit applies to property assessed after Jan. 1, 2025, on a homeowner's principal residence.Cleveland County Assessor Barbara Reaves said the additional $100 credit is automatically applied to everyone who is already receiving the homestead tax credit, and there is no need to apply for it at the assessor's office.Based on estimates provided by the school district's financial adviser, Stephens, Inc., a 6-mill tax increase will cost someone with assessed property valued at $100,000 about $120 more per year; someone at $200,000 about $240 more; and someone at $300,000 about $360 more.Under the new homestead tax credit, $100 would be knocked off each homeowner’s property tax regardless of whether the proposed millage increase is approved. Supporters of the millage like to point out that the estimated tax increase will automatically be $100 less due to the new homestead tax credit.Voters will determine the fate of the 6-mill tax request in an election on Nov. 18.In addition, there was also discussion Monday night about how the additional millage might impact those who have their assessed values “frozen” due to being age 65 or older, or they are disabled.State law allows property owners age 65 and older or those who are disabled to “freeze” the assessed value of their residential property, meaning their taxable value will not increase in the future due to reappraisal or inflation.To freeze an assessed property tax v...