FAQ Category: Real Property Questions

The Homestead Credit, also known as Amendment 79 is designed to give homeowners up to a $375 tax credit on property taxes every year.  Homes qualifying as a primary residence are eligible for the Amendment 79 credit ($375) for the current/purchase year.  The credit limits assessment increases to 5% (plus increases due to new improvements) on residential owner occupied properties and 10% (plus increases due to new improvements) on non-owner occupied residential properties, commercial properties and vacant properties.  Amendment 79 applications must be completed and turned in no later than October 15 to receive the credit for the current year.  In order to have the assessed value frozen, you must be 65 years of age or deemed 100% disabled by social security standards on January 1 of the year you are applying for the benefit;  otherwise it will take effect the following year.  Please note that taxes can still increase on “fixed” parcels because millage rates may increase.  Fixed parcels only receive a freeze in assessed values, not taxes.  Therefore, if the millage rate increases, a homeowner’s taxes will also increase.

Although the appeals process may seem like a difficult process it really is not.  If you believe that your home is not valued correctly begin by speaking with our office about how we go about determining value.  If after this discussion you are still of the belief that your home is not valued correctly then we can arrange for you to discuss your concerns directly with our appraiser (called an informal hearing).  If you are not satisfied with the results of this meeting we will arrange for you to meet with the Equalization Board.  The Equalization Board normally meets in the months of August and September to hear assessment appeals.  Appointments may be scheduled prior to the meetings starting in August by calling the County Clerk (870-853-2020), from July 1 through the third Monday in August.  If after this meeting you are still not satisfied with the results you can appeal their decision to the County Court which is presided over by the County Judge.  Appeals of the decision of the County Court are done through the Circuit and higher courts.

Once the house is recorded, it will be assessed automatically.  Appraisers assess the entire county every five years unless there is new construction, in which case there are field checks every year until construction is complete.  It is a good idea to check your real estate assessment every year.

Because we do not know the appraised value of the new house, use this formula to estimate:  (market value of house x 20%) x current millage = taxes.

The Tax Collector (870-853-2050) should have that on file.

To calculate an approximation of the taxes that are due take the assessed value (20% of the current total appraised value) and multiply that by the relevant current millage rate.

For Example:
If your home is appraised at $100,000 and the millage rate for your homes location is 46.66 mils then:

$20,000 (Assessed value is 20% or 1/5th of appraised value)

X 0.04666 (One mill is one thousandth of one percent)

=$933.20 (Estimated Taxes)

Now please remember that this amount of estimated taxes may be reduced by $375 if the home meets amendment 79 requirements for a homestead. Call us to see if you qualify (Hamburg Office: 870-853-2060 or Crossett Office: 870-364-4207).

Tax bills are mailed in the spring, during March and are due on October 15.

If it is a new house, the previous taxes may have been for only a portion of the house since it was not complete.  Buildings are assessed when they are at least fifty percent (50%) complete on January 1 of the tax year and the total value is assessed at that percentage.  Since the house is officially 10 percent (100%) complete, the taxes reflect that change.  Someone’s appraised value may rise if they added anything new to an existing improvement, if their millage rate went up, or if their land went from agricultural to residential status.

Taxes are always paid a year behind, so the taxes that are paid this year will be for the previous year.  Until the tax collector mails out the tax bills, we are unable to give an exact amount.