Many Faulkner County residents will pay more in real estate taxes next year, but some tax relief is available under the state constitution.
Assessor Jeff Stephens' office recently sent out notices regarding changes in property value. Stephens said state law requires all counties to reassess at least every five years, and in growing areas such as Faulkner County, assessments must be conducted every three years. Only residents whose property values increased received a notice, he said. Those whose property assessed at the same or a lower value did not receive a notice, he said.
"It's all market driven," he said. "Here in Faulkner County or Arkansas as a whole (properties) appreciate more. You can compare to just a few years ago and see a stair stepping increase."
Arkansas Mass Appraisal Group performed the appraisals for the county. Appraiser Page Kutait said the group sent qualified appraisers to gather data on all the property in the county, entered all data into a computer system, then examined every sale that occurred for the year 2007.
"We use 2007 sales to determine the value of all property in the county as of Jan. 1, 2008," he said, adding that appraisers examine sales closely to determine their validity.
"The value of your property was based on typical selling prices of properties like yours in similar neighborhoods. In the year 2007, there were literally thousands of sales that occurred that helped us determine property values," he said.
Stephens said it is true that property values in Faulkner County have increased, despite national media coverage of a housing market crash.
"When you see places like California appreciate quite a bit each year, an astronomical amount when they have problems, they fall," he said. "We just plug along on an even keel. We have single digit appreciation each year. Right now the economy is hurting, but our market sales are climbing. Arkansas is unique. When there's bad times, it doesn't hit us like the rest of the country. Years ago property values were running an average of 4 percent. Today they're right around the same percentage. What you see in the paper is nationally, not Arkansas."
David Mastin of Crestview Road in Conway said his home was reappraised at a 39 percent higher value, and two of his neighbors told him their properties were reassessed at 100 percent higher values.
Stephens said in cases of dramatic increases, it is likely the properties were assessed too low the last time. He said the average increase for Faulkner County is about 4 percent.
The reappraisal is based on sales in 2007 to determine the value of property in the county on Jan. 1, 2008, payable in 2009. Taxpayers who wish to appeal their reassessment have until Aug. 18 to petition the Faulkner County Equalization Board for a formal hearing. To schedule a hearing with the board, contact Arkansas Mass Appraisal Group at 888-852-5562. Taxpayers also have the right to appeal to the county judge and to circuit court, but must petition the equalization board first, according to one of the notices.
Taxpayers are provided some relief by Amendment 79 of the state constitution, which provides the $350 homestead credit on real estate taxes for the tax payer's principal place of residence.
Amendment 79 also places caps on assessment. A 5 percent cap applies to homesteads that are owner occupied. Under this provision, the taxpayer only pays 5 percent of the increase per year, provided there has been no new construction, until the full amount is reached. If the property is sold, the new owner must pay the full amount. A 10 percent cap is placed on property that is not the owner's principal place of residence.
Also under Amendment 79, taxpayers age 65 and over or who are disabled are able to have their taxes frozen at a lower value. Stephens said residents who have reached the age of 65 or are disabled can call the assessor's office to have their property value frozen.
Kutait said the notices indicate the property's previous value (assessed in 2005), new value and taxable value. The taxable value is used to calculate taxes for 2009 and includes all Amendment 79 caps and freezes that apply to the property, he said. The number is multiplied by the millage rate to calculate the tax. An estimated tax based on taxable value and current millage rate is also indicated on the notice.
Kutait said of the results of the reappraisal, "As a general rule, most of our properties went up some. Of our 61,699 parcels, 37,284 went up, 11,097 went down, 8,284 remained unchanged, and we had 5,034 new parcels."
To reach the Faulkner County Assessor, call 450-4905.
(Staff writer Rachel Parker Dickerson can be reached by e-mail at rachel.dickerson@thecabin.net or by phone at 505-1277. Send us your news at www.thecabin.net/submit)
