AAC


Adjustments in the Form of Tax Relief Amendment 79, which I alluded to earlier, provides for


property tax relief by limiting the increase in assessed value for tax purposes as a result of county-wide reappraisal and also delivers a homestead tax credit. An increase in the assessed value of a homestead is limited to 5 percent for the year following a reappraisal. If the reap- praisal results in an increase of more than 5 percent, assess- ments in subsequent years will be increased by a maximum 5 percent per year until the initial reappraisal assessment is reached. For real property, other than a homestead, assess- ment increases are capped at 10 percent per year and imple- mented in similar fashion. Tese limitations do not apply to newly discovered real property, new construction or increases resulting from substantial improvements to the property. Starting with the 2019 assessment year collected in 2020,


Arkansas taxpayers are eligible for an annual property tax credit up to $375 against the ad valorem property tax on a homestead. Te tax credit cannot exceed the total property tax on the homestead, which is the dwelling place used as the property owner’s principal place of residence. Counties give the tax credit to eligible taxpayers and receive reimbursement from the Treasurer of State using the Property Tax Relief Trust Fund [A.C.A. § 26-26-310].


Conclusion


Te property tax system in Arkansas is administered by county officials. Te Arkansas system is uncommon because property taxes are paid during the year following the year in which taxes are assessed. So, it takes about two years for property to be assessed, equalized, billed and paid. Because of the two-year period required to complete one tax cycle, county officials are continuously processing two different tax years at the same time. If you’re thinking about moving to a state without property


taxes, don’t waste your time looking. All 50 states have prop- erty taxes. But that’s where the commonality ends. Tax rates can range from very low in one jurisdiction to astronomically


SEEMS TO ME ...


high in another. Arkansas is listed in the Top 10 Lowest Property Tax States


in every survey I have reviewed. In one of the very latest sur- veys, the Arkansas property tax rate was ninth lowest. But the median real estate taxes paid was third lowest at $743. Only two states had slightly lower median real estate taxes paid — Alabama and West Virginia. Low tax rates and low home values make Arkansas an af-


fordable state in terms of property taxes. Yet the property tax, even in Arkansas, is the most hated of all taxes. Te assessor and collector are on the front lines and the


recipient of unpleasant taxpayers on occasion. My advice to county officials has always been to remain professional and treat even “mad folks” with as much courtesy and respect as possible. Know the law and the property tax process so you will be able to completely explain their tax bill. Te Arkansas Constitution dictates that assessments be handled equally across the state, meaning that everyone and their property is treated the same. You don’t do one thing for one person and something different for the next person. Most people want you to do the right thing — to abide by the laws you swore to uphold. Many times, a completely truthful explanation does the job. Tomas Jefferson enunciated the basic principle of public service when he said, “When a man assumes a pub- lic trust, he should consider himself as public property.” I don’t know that I would be quite as forthcoming as an in- cumbent assessor running for re-election in 2006. Tat asses- sor said, “Property owners pay more when they elect a good assessor. Asking you to vote for me is like asking a chicken to vote for Colonel Sanders, but somebody has to do it.” It seems nobody likes property taxes, but they’ve been


around for centuries, and they’re not going anywhere. We just need a better understanding of them and what they pay for, so we won’t be afraid of them. Te cartoon char- acter Maxine is everyone’s favorite cranky old lady. I saw a Hallmark Maxine greeting card recently where Maxine was saying, “I really scared the neighbors this year. I dressed up as property tax.”


FUTURE


of a Gubernatorial-declared state of emergency, state officials would have the authority to postpone certain regularly sched- uled or special elections for a limited time or implement other emergency plans as needed for the health and safety of the public as well as election officials. Te last few weeks have been daunting, unique, and quite literally unprecedented for almost everyone involved in local and state government. Te ability of local elected officials to


COUNTY LINES, WINTER 2020


Continued From Page 16 <<<


recognize issues, adapt, and react accordingly has been and will continue to be crucial to the uninterrupted operations of county government. Te AAC will continue to provide guid- ance to elected officials to the best of its ability and looks for- ward to working with county and district elected officials in the coming months to discuss and propose ways to help local governments better operate under unique emergency circum- stances in the (hopefully very distant) future.


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