Commercial Real Estate
Commercial property refers to land or buildings that are intended to generate profit, and includes office space, retail, hotels, motels, medical office, and multifamily housing.
How Do I Assess My Property?
The Assessor automatically assesses real property annually to the owner of record based upon the current property records. The property owner does not need to take any action if there are no changes to the property. The property owner should notify the Assessor if there are any changes such as construction of new buildings, additions to existing structures or a change in use of the property (going from owner-occupied residence to rental property for example).
During the course of the reappraisal (3 or 5 year cycle) any previously undiscovered property is discovered and assessed by the Assessor. The Assessor makes changes of ownership in real property according to properly recorded deeds or other real property transfer documents.
When Do I Pay My Taxes?
Property taxes that are currently due are payable to the County Collector by October 15th each year.
Partial payments are generally accepted up to the deadline; your County Collector can provide further details.
How Do I Appeal My Assessment?
If at any time you disagree with your assessment or think there are inaccuracies in your record, first check with your County Assessor. If there are errors in property details, those can often be fixed without further appeal.
For more substantial assessment appeals, the last day to schedule an appeal hearing with the County Board of Equalization is the Third Monday in August.
How does the Assessor determine a value for my property?
During the reappraisal cycle, every 3 or 5 years, each property is visited by the Assessor or their representative. During this review data on any existing structures and other improvements (fences, signage, driveways, parking lot, etc.) is gathered. The data that needs to be gathered in order to value commercial properties include: size of the improvements, quality and condition of the improvements, occupancy (what the building is used for), sales data, and rental data.
At that time, for valuation purposes, one of the three approaches to value (sales comparison, cost approach, or income approach) will be applied to the property as its Market Value. Analysis and comparison is done with like properties to verify the accuracy of the value.
Property Tax Relief
Amendment 79 to the Arkansas Constitution, otherwise known as the Property Tax Relief amendment, gives taxpayers a few benefits.
Amendment 79 provides limitations on how much the taxable assessed value of real property can increase as the result of a county-wide reappraisal. The taxable value of a homestead property can only increase 5% per year until the property reaches full assessed value. The taxable value of all other real property parcels, commercial, agricultural, and vacant can only increase 10% per year until the property reaches full assessed value. The 5% and 10% caps do not apply to newly discovered real property, new construction or substantial improvements to real property. Substantial improvements are defined as “renovation, reconstruction and refurbishment” of a property that adds 25% or more to the value of the property.
Commercial Valuation Guides
Industrial Real Estate
Industrial property is a type of commercial property that includes manufacturing facilities and warehouses. While the methods for data collection and valuation are the same as other property types, the size and complexity of industrial properties means that many times the Assessor or their representative will bring in experts to assist in the valuation.