The city sales tax rates range from 0.25 percent to 3 percent on taxable goods and services with over two-thirds having a city sales tax of 1 percent. A trend in the 1990s was for more communities to raise a larger share of their local revenue from the sales tax instead of the property tax. Back to Top Sources of Property Tax Revenue Property tax revenue is collected from commercial and industrial establishments, utilities, and farms as well as from owners of residential establishments and individuals who pay personal property taxes. Residential real property, the single largest source of property tax revenue, accounts for 41 percent of the tax base compared to 30 percent from commercial and industrial property. Personal property tax paid by individuals accounts for 12.5 percent of the property tax base while utilities and farms contribute about 9 percent and 7 percent, respectively, to the tax base.
Real property makes up two-thirds of Arkansas' property tax base.
One-fourth of the property tax base is personal property while utilities contribute 9 percent. Mineral property represents less than 1 percent of the property tax base in Arkansas. Clay County - Property Assessments by Source Back to Top Changes in Property Assessments Property assessments and the rate of increase in property assessments vary greatly among counties. For information on county assessments see the charts listed below. On average property assessments in Arkansas increased 47 percent between 1990 and 1998.