AAC
SEEMS TO ME... TAXES
• Te taxpayer reports personal property between Jan. 1 and May 31 each year and reports real property eligible for the homestead tax credit by Oct. 15 to the county assessor.
• Te county assessor determines the market value of the property, as required by the Arkansas Constitu- tion, and then multiplies the market value [use value for agricultural, timber and pastureland] by 20 per- cent to obtain the assessed value of the property. [See Adjustments to Assessed Value for further discussion of assessor duties.]
• Te taxpayer may challenge their property tax assess- ment with the equalization board.
• Te equalization board determines the equitability of assessments, meaning ascertaining that assessments are made using the same standards for everyone in the county. And they hear assessment appeals from taxpay- ers. Each year the equalization board meets beginning Aug. 1 through Oct. 1. In counties where the assessed value does not reflect true or market value, the board must continue meeting until all assessments are equal- ized and all requests for adjustment have been consid- ered. However, the board is not to meet later than the third Monday in November [A.C.A. § 26-27-309]. Dates for hearing individual appeal cases are scheduled by the county clerk, or his or her designee, as secre- tary of the board upon request of a taxpayer/property owner. Requests for appeal must be filed with the secretary of the board by the third Monday in August [A.C.A. §§26-27-307 and 26-27-317]. If the property owner does not agree with the ruling of the equaliza- tion board, they may appeal the ruling — first to the County Court, which is the county judge, who has exclusive original jurisdiction in property tax matters [A.C.A. § 14-14-1105(b )(1)]. If the County Court ruling is not satisfactory to the property owner, they can then appeal to the Circuit Court, and then to the Arkansas Supreme Court.
• Te county clerk or other county official appointed “preparer of the tax books” by the quorum court computes property taxes by multiplying the taxable assessed value by the total millage rate applicable to the taxpayer and provides this information to the county tax collector by Feb. 1 of each year [A.C.A. § 26-28-304]. Although originally the county clerk was the preparer of the tax books in Arkansas, current law authorizes the quorum court to appoint by ordinance either the county clerk, assessor, or county collector as the preparer of the tax books [A.C.A. § 26-28-302].
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• Te county tax collector is required to mail tax state- ments no later than July 1 each year, although most prepare and mail the statements much sooner. Current taxes from the previous year’s assessments are collected by the county collector each year from the first busi- ness day in March through Oct. 15 [A.C.A. § 26-35- 501]. Failure to pay current property taxes in full by Oct. 15 results in a 10 percent penalty, plus costs, and collector’s fees added to the tax bill. Taxpayers have the option of paying current taxes in three installments: (1) First installment of at least 25 percent due the third Monday in April; (2) Second installment of at least 25 percent due the third Monday in July; and (3) Te final installment of 50 percent or the balance due Oct. 15. A different installment schedule applies to utilities and carriers. Te county collector may authorize tax- payers, except utilities and carriers, the option to pay current real and personal property taxes in installments in any amount between the first business day in March and Oct. 15. Te collector is required to turn over property tax collections to the county treasurer at a minimum one time each month. Te collection settle- ment is due on the first of each month or within 10 days thereafter [A.C.A. §§ 21-6-310 and 26-39-201]. Te county depository board is authorized to require county officials to settle with the county treasurer more frequently than monthly [A.C.A. § 19-8-106(a)(3)].
• After receiving the tax settlements from the collector, the county treasurer receipts current taxes to the Col- lector’s Unapportioned Fund; delinquent real taxes to the Delinquent Real Estate Tax Fund; and delinquent personal taxes to the Delinquent Personal Tax Fund. Te treasurer also receives delinquent real settlements from the State Land Commissioner for real estate that has been certified to the state of Arkansas for failure to pay taxes within one year following the date the taxes were due. Tese tax settlements are credited to the State Land Redemption/Sales Fund. Te treasurer distributes property tax revenue to school districts and county and city governments based on the assessed value of property and millage rates in each jurisdic- tion. Only 90 percent of current taxes are distributed monthly with the balance distributed upon order of the county court approving the final settlement. Te 10 percent held in the Unapportioned Fund is used to fund the office operations of the assessor and collector and settle up with the various tax entities at the end of the year [A.C.A. § 26-39-201(b)(2)]. Delinquent tax settlements are distributed in full each month.
COUNTY LINES, WINTER 2020
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