Arkansas Gov. Sarah Huckabee Sanders signed House Bill 1475 (HB 1475) into law on March 23, which prohibits assessors from including intangible property in determining taxable value. The bill was supported by the Arkansas Self Storage Association and the national Self Storage Association (SSA), according to a March 27 email newsletter to SSA members.
Specific to self-storage, the measure outlines intangible property as including “goodwill, rental agreements, customer lists, security systems, future development opportunities and management software.” In addition, the law allows facility owners to request a written explanation of the “value of the taxpayer’s intangible personal property” and how the value was excluded from their property-tax assessment.
Introduced in February, HB 1475 passed the house 94-0 on March 9, with six non-votes, and the senate on March 16, with a 35-0 vote.
The law is similar to legislation under consideration in Idaho.
Sources:
SSA Magazine Weekly 3/27/23, Arkansas Approves Modification to Property Tax Assessment
Arkansas State Legislature, HB 1475