Property Tax Records in Arkansas

Arkansas is one of a small number of states that doesn't directly collect property taxes. Cities and counties collect these taxes, which are mainly used to fund the local public school systems. Even though the state doesn't impose a property tax, the average percentage that homeowners must pay is around 0.57%. These taxes are based on the property's market value or appraised value.

While property taxes vary depending on where you live, you'll likely pay less than the national average. In most cases, homeowners with higher-valued properties must pay more taxes each year. Property tax payments are usually due October 15. You can choose to pay your taxes in person at the local courthouse, by mail, or online. The county assessor determines how much you owe. If you don't pay your property taxes on time, you may be subject to penalties, interest charges, or a tax sale.

The state's right of taxation was officially adopted in 1874 as part of the Arkansas Constitution. For nearly 80 years, the state collected property taxes. However, this right went to the counties in 1958, which is when an amendment was passed by Arkansas voters to prohibit statewide property taxes. Today, the taxes that counties collect are used to pay for municipalities and school districts.

To determine property taxes in Arkansas, your home must first be appraised. This process is performed by a professional appraiser who has been designed to identify the value of properties by the state. A property's appraised value is the same as its market value. This is the price of your home if you decide to sell it on the market. However, tax rates depend on your home's assessed value instead of its appraised one.

In Arkansas, the assessed value of your home is equal to 20% of its appraised value. If you own a home with a market value of $300,000, the assessed value would be $60,000. Arkansas law places a limit on how much your home's assessed value can increase in a year even if the appraised value doubles, the home's assessed value can only rise by 5%. There are also additional minor costs. For instance, in Pulaski County, there are sanitation fees and special improvement district taxes that are billed separately and must be paid before or along with your ad valorem taxes. These taxes do not qualify for any exemptions. Every county is different, and Pulaski County real estate taxes may be higher overall than in other parts of the state.

Like most states, tax rates are based on mills. A single mill is equivalent to 1/1,000, which is the same as one-tenth of a percent. If you receive a tax rate of 25 mills on an assessed value of $60,000, you will calculate your property tax with the following equation:

$60,000 x (25/1,000) = $1,500

In this scenario, you'll need to pay $1,500 in annual property taxes. The Arkansas millage rate differs depending on the city, county, or school district. As mentioned earlier, the money you pay to cover your property taxes goes towards funding the local school district and other municipal projects. Here are the tax rates for the five main counties in Arkansas:

Arkansas property tax records give you access to everything you need to know about a property and the taxes that are collected on it. The types of public services that are paid for with Arkansas property taxes include the following:

Regardless of the type of real estate you own, you'll need to pay property taxes. These taxes are applied to condos, townhouses, single-family homes, multi-family properties, and co-ops. Whether you want to buy your first home or invest in rental real estate, you can find information about a property's taxes via the county records where the property is located. Once you access these records, you'll see a lot of details about the property, its appraised value, and the taxes that have recently been paid on it.

After you purchase a property in Arkansas, you can use the county records to obtain a homestead exemption application. Property tax records in Arkansas are mostly the same regardless of which county you live in. Along with sale history and valuation information, you can also learn about the types of improvements that have been made to the property over the years. More detailed information about renovations is usually available in a separate "Improvement Summary Report" that's included within the record. The main components that can be found in Arkansas property tax records are:

Arkansas Property owners have access to several tax exemptions, deductions, and types of relief. You may need to meet specific requirements to qualify for one or more of these deductions.

Homestead Tax Credit: In Arkansas, homeowners can apply for and receive a homestead creditthat reduces their property taxes by up to $375 each year. Keep in mind that the homestead tax credit is set to increase starting in the 2024 tax year. It will rise from $375 to $425. This credit is only available for primary residences. However, the property can be owned by an irrevocable or revocable trust. If you'd like to apply for the credit, you'll need to do so online or at the county assessor's office.

If you live in a retirement center or nursing home but still own your residence, you could continue qualifying for this tax credit. The same is true if you have deeded your home to someone else but still live there. In this scenario, you must have a recorded life estate within the property. Only one of these tax credits can be claimed per year.

Property Tax Relief for Age 65 or Disabled Homeowners: If you qualify for the main homestead tax credit and are either disabled or at least 65 years old, you might be able to receive additional relief from your property taxes. If you meet these requirements, the assessed value of your property can be frozen at its current value. Make sure you apply for this tax break at the county assessor's office. Before you sell your property in Arkansas, keep in mind that this tax relief isn't transferred alongside the title and deed.

Even if you qualify for this exemption, there are some limitations that you should be aware of. For example, the assessed value of your home could increase even if the freeze has been applied. This increase might occur if substantial improvements are made to the property or if new construction takes place.

For example, adding an extra room to the home could cause the assessed value to increase. Renovations will be assessed at full value. However, this only applies to substantial improvements that add at least 25% to the value of the property. If your home is valued at $300,000 and you make improvements that add another $50,000 to the total value, your property taxes won't increase.

Amendment 79: As mentioned earlier, Amendment 79 places a cap on how much the assessed value of a property can increase each year. The taxable value of your homestead property can only increase by 5% every year until the full assessed value is reached.

For agricultural and commercial properties, the assessed value increase is capped at 10% every year. These limits don't apply to new construction, substantial improvements, or newly discovered properties. Newly discovered and newly constructed properties are assessed at full value.

There are a few methods for finding property tax records in Arkansas. Most counties have placed all real estate records online, which means that you don't need to go to the county assessor's office to request a copy. However, this option is still available if you'd rather have a hard copy. Every county has its website, where you can find specific information for the tax assessor.

The government also maintains an online database that makes it easy for Arkansas homeowners or buyers to access property tax records. You should be able to download these records. Visit ARCountyData.com to select a county and conduct your search.

Once you choose a county, you can either enter the information you know to bring up the report or view the full map to find the specific property. On the right side of the page is a "My Location" button. If you're at the property that you'd like information on, click this button so that the website can find the address and provide the correct report.

You can also choose to look up this information via third-party databases, which may offer more features. If you select the PropertyChecker database, you can search by address, name, phone, email, or parcel ID. You can conduct unlimited searches when looking for property tax records. With the service statewide searches are possible.

If your home receives a higher value than you believe it's worth, your tax bill might increase considerably. If you believe that your property taxes are too high, you could file an appeal in Arkansas. You'll likely receive a notice of property assessment from the county you live in a few months before the payment is due, which is typically October 15.

Step 1: Wait until you receive the notice that your property has received a new assessment. If the value is too high, consider filing an appeal with the Arkansas Tax Appeals Commission.

Step 2: You can file the appeal online or send in a hard copy. You won't need to pay a filing fee. Here's a sample of the appeal document. Your case will receive a docket number once you file the petition.

Step 3: If you'd like your petition to go through quickly, file it online. When filing by mail, send the form to the Arkansas Tax Appeals Commission at 900 West Capitol Ave., Suite 310, Little Rock, AR 72201. As long as the postmark is made before the deadline, your petition will be granted.

Step 4: Include a copy of your notice along with any other documents that you believe should be considered. The Commission doesn't have direct access to these records unless the taxpayer submits them. In most cases, you'll have 90 days to appeal the decision.

Property tax records can have a substantial impact on all types of real estate transactions in Arkansas. If you live in an area with high property taxes, you won't have as much disposable income every month. However, Arkansas tax rates are below 1% regardless of where you live, which means that potential buyers shouldn't feel the need to look somewhere else because of property taxes.

If you're investing in real estate, high taxes could lead to less rental income, which might make it more difficult for you to earn a profit. Since most counties in Arkansas have low property tax rates, this shouldn't be a major concern of yours. The cap on assessed value will prevent your taxes from increasing too much in a given year.

If you want to invest in real estate, it's possible to buy a home when a lien has been placed on it for unpaid property taxes. This lien could cause the property to foreclose. When this occurs, the lender may auction off the property. The Arkansas Commissioner of State Lands includes a directory of all scheduled public auctions throughout the state.