Arkansas Cama Technology Project Manager for Carroll and Madison counties reappraisals, Dennis Wells, said in a phone interview that total property values in Carroll County have gone up from between 40 to 45 percent in the recent reappraisal. That will trigger the need to have another reappraisal in three years instead of the five-year cycle the county has been under in the past.
July 15 notices went out to property owners for 25,695 parcels in the county. Wells said of those parcels, 17,888 went up in value, 3,867 went down, and 3,940 stayed the same.
“Madison County had a 32 percent increase in their appraisal last year, and Carroll is a more valuable county,” Wells said. “We don’t have the exact totals yet, but I am 95 percent certain that Carroll County’s appraisals were up more than 25 percent, which will trigger having another appraisal in three years. We are looking at least at a 40 percent increase and it may be 45 percent.”
Wells said they have not had a lot of calls from property owners, but people have until August 15 to either contact his company by calling (844) 390-7791 or file a 2022 Application for Adjustment to Assessment Value with the Carroll County Clerk.
“We can make a correction if, say, it is a two-bath house, and we said it was four-bath house,” Wells said. “We have a lot of people who just go to the Equalization Board. They don’t even call us. They call the board to set up an appointment, and that’s fine. But if we have something that is not correct, we can fix it until the board goes into session. We can also fix mathematical errors. About 99 times out of 100, the Equalization Board takes our recommendations.”
On the back of the notice of real estate value change letters that went out, it states that you have the right to informally review the reason and new valuation with an appraiser by contacting Arkansas Cama Technology. Wells said they are happy to adjust any data entry errors without requiring a property owner to meet with the County Equalization Board. Property owners can also discuss other concerns.
The Equalization Board will be in regular session through September 30. You can schedule an appointment on or before August 15 by calling (870) 423-2022 or by submitting the 2022 application.
In order to protect taxpayers when appraised values go up dramatically, Arkansas has Amendment 79 that includes a “rollback test.” Arkansas Assessment Coordination Division Director Sandra Cawyer said Amendment 79 provides that if a county, city or school district hits a certain percentage of growth, the millage is supposed to be rolled back to the level needed by government to cover current expenses.
“It is a very convoluted process, and the law is huge,” Cawyer said. “There are things that could happen that could roll the millage back. How it would apply, when it would apply and how it would apply, I can’t say.”
Wells said the Carroll County Clerk is responsible for doing the rollback calculation and has hired an attorney, who is also a CPA, to calculate the rollback deduction. If there is a significant rollback, it could result in reduced millage rates that could decrease the amount of additional taxes estimated in the real estate value change letters that went out July 15. That could be a relief to taxpayers shocked about how much their taxes were estimated to increase in 2023 and beyond.
Wells said some of the increases in property values have been eye-popping. One lake home recently sold for $3.1 million, and two sold for more than $1 million. He said houses with water views are commanding high prices.
Wells recommends that people who live in their homes apply for the homestead exemption if they haven’t already. That can take up to $375 per year off their taxes.
“People from California call and ask for the homestead exemption, and we tell them you don’t get homestead exemption for second homes,” Wells said.
If someone has reached the age of 65, they can bring proof of their date of birth to the courthouse and become eligible to have their taxes frozen on the home they live in full-time. This is not automatic. Property owners must apply by bringing proof of their age. People who present proof of being disabled can also have their property taxes frozen.
Wells said sometimes when young people purchase from seniors or people who are disabled, the buyers get the idea that taxes are low. But that won’t be the case if the senior or disabled person’s taxes have been frozen at a lower level than what will be charged to the new owners without exemptions. Wells said almost always the younger people will pay higher property taxes.
Wells said there are caps on how much taxes can go up per year. For a homestead property, taxes can only go up five percent a year until the tax amount due on the assessed value is reached. For non-homestead properties, taxes can only go up ten percent a year.
The Eureka Springs School District currently receives 75 percent of the property tax revenue in the city. Chris McClung, president of the Eureka Springs School Board, said it is typical in Arkansas for the school portion of the tax bill to be the highest. Other states have different formulas for funding schools. In Arkansas, they are primarily funded by property taxes.
“We get very little from the State of Arkansas,” McClung said. “About 90 percent of our revenue is based on local property tax revenues. We are really grateful to our patrons within the school district.”
There are three boxes that can be checked on the Application for Adjustment to Assessment Value regarding the reason for requesting an adjustment:
- The assessment is unfair compared to other properties similarly situated, evidenced by the fact that the property is accessed higher than neighborhood properties of the same use, size, materials and conditions.
- The assessment is clearly erroneous, evidenced by the fact that the appraisal relies on substantially inaccurate or insufficient information concerning the property.
- The assessment is manifestly excessive or greatly exceeds what willing and knowledgeable buyers would pay similarly motivated sellers for a property, evidenced by selling prices of similar situated properties.