John Zimpel , Research, Development and Technical Support, Arkansas Assessment Coordination Department Introduction Property tax is an important source of revenue for local governments, including school districts and county and city governments. Revenue generated by the property tax is used to finance education, roads, hospitals, libraries, public safety and for the general operation of county and city governments. The intent of this publication is to help Arkansans better understand the administration, computation and collection of the property tax.
Real property is all tangible real estate that is fixed, immovable property.
This includes land and all improvements made to that land, such as buildings, homes and barns. As with real property, personal property is subject to ownership and is tangible. Personal property, however, is movable and may be either animate or inanimate. Basically, personal property is everything that is subject to ownership, tangible and movable. Items of household furniture and furnishings, clothing, appliances and other personal property used within a home were exempted from personal property tax by Amendment 71.