Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 3 - ADMINISTRATION OF LOCAL TAXES (§§ 26-23-201 — 26-28-308) › Chapter 26 - ASSESSMENT OF TAXES (§§ 26-26-101 — 26-26-2001) › Subchapter 3 - ADMINISTRATION GENERALLY (§§ 26-26-301 — 26-26-311) › Section 26-26-304 - Ratio of assessed value to market value in the assessment year that reappraised values are placed on the assessment rolls

(a)
(1)
(A)
The Assessment Coordination Division shall prepare a ratio study for the purpose of determining the average ratio of full assessed value to the true and full market or actual value of real property, by classifications, in each of the several counties and school districts of the state in the assessment year that reappraised values are placed on the assessment rolls.
(B)
(i)
This ratio study shall be based on sales-to-assessment ratios, supplemented with appraisal to assessment ratios as required to meet generally accepted statistical techniques.
(ii)
The study shall determine the actual assessment level of real estate as required by law, including the value of agricultural lands that qualify for use and productivity valuation, by classification such as residential, commercial and industrial, agricultural, and other classifications.
(iii)
No later than January 31 of every year, all counties shall report, by electronic transmission, sales data to the division. The sales data shall include:
(a)
A listing of each property transferred under a warranty deed or special warranty deed;
(b)
The consideration paid;
(c)
The date of the sale;
(d)
The parcel number;
(e)
The legal description;
(f)
The names of the grantor and grantee;
(g)
The most recent assessed value of the property; and
(h)
Other data prescribed by the division.
(iv)
(a)
The sales-to-assessment ratio study shall include sales data for the calendar year previous to the assessment year.
(b)
In those instances when the number of appropriate sales from the calendar year previous to the assessment year is insufficient to present a statistically sound sample, the sales-to-assessment ratio study may include sales data for the three (3) calendar years previous to the assessment year.
(c)
The division shall report the preliminary sales-to-assessment ratio studies to the county assessor and county judge on or before March 1 of the assessment year.
(2)
The division shall supplement the sales-to-assessment ratio with appraisals as required and report the original combined real property ratios to the county assessor and county judge.
(3)
In conducting the studies, the division shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers' Standard on Ratio Studies.
(b)
(1)
(A)
An annual ratio study for the purpose of determining the average ratio of assessed value to the true and full market or actual value of personal property in each of the several counties of the state shall also be made.
(B)
This ratio study of personal property shall be based upon a physical examination of the records of each county assessor's office to determine the degree of compliance with the criteria as established by the Arkansas Commercial Personal Property Appraisal Manual.
(2)
The personal property original ratio study shall be certified by the division to the county judge and county assessor of each county by September 15 of each year.
(c)
(1)
On or before August 1 of each year the county assessor shall report to the division by total of items and value the total assessment of the county as made by the county assessor.
(2)
(A)
The preparer of the tax books shall file a report with the division showing the percent of true market or actual value at which the county equalization board has equalized the assessed values of the property of the county under the county equalization board's jurisdiction for the year, together with an abstract of the adjusted assessment by total of items and value.
(B)
The report and abstract shall be filed each year no later than thirty (30) days after final adjournment of the county equalization board.
(d)
(1)
Whenever any county assessor or deputy county assessor attends a school or instructional meeting pursuant to the request of the division, he or she shall be entitled to reimbursement for his or her travel expenses, which shall be paid by the division upon filing of a proper claim for the travel expenses.
(2)
The county assessor and his or her deputies shall also be entitled to reimbursement for travel expenses within the county in performance of their duties as required by this section, which shall be paid by the county.
(3)
(A)
All reimbursements for travel expenses shall be limited to the actual and necessary expenses incurred.
(B)
The total expenses incurred, other than for transportation, for travel within the county shall not exceed one-half (1/2) the daily maximum amount authorized for travel of state employees within the state, and, for travel outside the county, the amount shall not exceed the daily maximum amount authorized for travel of state employees within the state, in accordance with state travel laws and rules.
(C)
The transportation expenses shall not exceed the actual amount paid, except that the reimbursement for use of a private automobile shall be at the same rate per mile as is allowed in the reimbursement of state employees under the state travel laws and rules for transportation expenses for each mile actually and necessarily traveled by the automobile, within and without the county.
(e)
(1)
In addition to the other provisions of this section, whenever the September 15 ratio for the classifications of market value real estate, business personal property, auto and other personal property, or agricultural and timber falls below eighteen percent (18%) or above twenty-two percent (22%) of full fair market value, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
(2)
Furthermore, when a ratio study determines that the county does not meet the ratio standards found in the International Association of Assessing Officers' Standard on Ratio Studies, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
(3)
The division may conduct a county ratio study, in full or in part, at any time that the division determines that a county has engaged in inappropriate assessment roll changes or manipulations.
(f)
(1)
(A)
When a county has failed the ratio study, the division shall direct and supervise a detailed market value and assessment value analysis of the area or class indicating a deficiency in order to determine the political subdivisions and neighborhoods or appraisal methodology, or both, in need of assessment value adjustments.
(B)
When appropriate assessment value adjustments are determined for the county, the county shall place the assessment value adjustments on the assessment rolls of the county in a manner that is most equitable for the taxpayers of the county for taxation according to the laws of this state.
(C)
(i)
The division and counties employing contracted appraisal services shall bear no additional expense for correcting a failed ratio study if the failure is found to be the fault of the contractor.
(ii)
The contractor shall bear the cost of these additional services.
(2)
(A)
In the case in which a county fails to place the assessment value adjustments on the assessment rolls of the county as directed by the division, the division may notify the disbursing agents of the State of Arkansas to withhold the funds accruing to the county from all sources until the time that the adjustments are made.
(B)
If the adjustments are not made for one (1) year, the withheld funds shall not be reimbursed to the county and shall be deposited into the State General Government Fund, and withholding shall begin for the following year.
(g)
(1)
If a county is aggrieved at the findings of the division, the county may appeal the findings of the division to the Director of the Assessment Coordination Division.
(2)
The officials of each unit of government affected shall have the right to examine the records of the division that pertain to the ratio findings or value adjustment order for that unit of government.
Amended by Act 2021, No. 278,§ 1, eff. 7/28/2021.
Amended by Act 2019, No. 315,§ 2953, eff. 7/24/2019.
Acts 1955, No. 153, §§ 9, 12; 1957, No. 304, § 1; 1959, No. 31, § 1; 1959, No. 244, § 1; 1969, No. 60, § 1; A.S.A. 1947, §§ 84-477, 84-477n; Acts 1987, No. 838, § 1; 1997, No. 440, § 2(g); 1999, No. 1079, § 1; 2001, No. 1131, § 1; 2005, No. 73, § 1; 2005, No. 1772, §§ 1, 2.