Arkansas Administrative Code
Agency 177 - Assessment Coordination Department
Rule 177.00.04-001 - Regulations concerning the operation of the Department and for the valuation, assessment, and equalization of ad valorem taxes
Current through Register Vol. 49, No. 2, February 2024
CHAPTER ONE GENERAL PROVISIONS
Act 436 of 1997 created the ASSESSMENT COORDINATION DEPARTMENT and pursuant to Arkansas Code Annotated 25-2-102 (Type 2 transfers) transferred the Assessment Coordination Division from the Public Service Commission to the Assessment Coordination Department.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 25-28-103, 26-24-102, and 26-24-107.
The ASSESSMENT COORDINATION DEPARTMENT has the full power and authority in the administration of the property tax laws of this state to exercise general and complete supervision and control over:
Adopted 10/01/99
The Assessment Coordination Department welcomes inquiries from the public. Areas of responsibility are assigned to Divisions within the Department.
The Assessment Coordination Department is composed of an Administrative body consisting of its Director, Deputy Director, Legal Counsel, Division Managers and support staff.
Adopted 10/01/99
All orders, decisions, opinions, rules and other written statements of policy or interpretations formulated, adopted or used by the ASSESSMENT COORDINATION DEPARTMENT in the discharge of its functions are available for copying and public inspection at its offices at 1614 West Third Street, Little Rock, Arkansas during the regular business hours of the custodian of the records which is generally between the hours of 8:00 a.m., and 4:30 p.m., Monday through Friday of each week, with the exception of state holidays.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 25-19-101 et. seq.
The Assessment Coordination Department shall fully comply with The Arkansas Freedom of Information Act of 1967, as amended. Photocopies of documents shall be 504 each.
Adopted 10/01/99
There are hereby created the Assessment Coordination Department (ACD) Best Practices Advisory Groups. The Groups shall advise and assist the ACD Director in the development of standards for Best Practices in all areas of property assessment in Arkansas, including but not limited to the discovery, listing and valuation of property and ACD auditing procedures. Their role will be advisory only and not binding upon the Director.
Membership
The Director shall appoint members from a list of volunteers. All people employed in the assessment profession or interested in the assessment profession, including those from Arkansas and those from other states will be eligible for appointment. Members shall serve for a term of one year and may be reappointed by the director. The Director may remove any member absent from three meetings during a calendar year.
The nine standing Groups are:
Each Group will consist of seven members. From that group, the Director will choose one member to serve as Chairperson. The Chairperson shall be responsible for coordinating meetings, drawing up documents outlining recommended best practices, appointing a secretary for the Group and reporting the Group findings to the Director. From time to time the Director at his or her discretion may form ad hoc Advisory Group Committees to address issues not within the purview of a standing Group.
Notice
Immediately upon adoption of this rule, the director shall mail an announcement to each county assessor, each appraisal contractor in Arkansas and each ACD employee an announcement of the formation of the nine Advisory Groups. Each county assessor and contractor shall place the announcement in a conspicuous place for all employees to see. Accompanying the announcement will be a volunteer sign up sheet, which any eligible individual may return to the Director to be considered for inclusion, in a Best Practices Advisory Group.
Adopted 07/05/04
CHAPTER TWO GENERAL RULES OF PRACTICE AND PROCEDURE
STATUTORY AUTHORITY: A.C.A. 25-15-206
Pursuant to Acts 1967, No. 434, Petitions for declaratory orders as to the applicability of any rule, statute, or order enforced by The Assessment Coordination Department shall be in writing and signed by the Petitioner. Petitions shall be filed in duplicate with the Director of the Department, who shall have the date of receipt stamped thereon and return one copy to the Petitioner. All Petitions for Declaratory Orders shall be titled as such.
Declaratory Order promptly on receipt of the official opinion of the Attorney General.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 25-15-204
Any person has the right to petition for the issuance, amendment, or repeal of any rule. Within thirty (30) days after submission of a petition, the Assessment Coordination Department shall either deny the petition, stating in writing its reasons for the denial, or shall initiate rule-making proceedings.
Adopted 10/01/99
CHAPTER THREE
IMPLEMENTATION OF ACT 1185 OF 1999
STATUTORY AUTHORITY: Act 1185 of 1999.
The ACD shall contract with a qualified individual with adequate training and experience necessary to formulate an appropriate examination designed to test one's ability to perform as an appraisal manager.
The examination shall emphasize theory and practice of mass appraisal as opposed to conventional single property appraisal, be designed in two sections and shall include, but not be limited to: the first section of the appraisal manager exam shall be a multiple choice exam designed to test the individual's knowledge of mass appraisal terminology and theory.
The second section of the exam shall be a case study or studies. The case study portion of the exam will provide the student with a sample county, and require the student to work out the appropriate number of personnel, and budgets necessary to perform a countywide reappraisal. The proficiency exam will contain subject matter of the IAAO Administration Course, and will cover the Arkansas property valuation system, sales editing, neighborhood delineation, use of location factors, and effective ages.
Adopted 10/01/99
Prerequisites for eligibility to take the exam shall include; Level 4 Appraiser as designated by the State of Arkansas Training and Certification Program, or IAAO educational equivalent, and a minimum of four years experience in the mass appraisal field.
Adopted 10/01/99
Adopted 10/01/99
Repealed 12/01/00
The author of the appraisal manager exam will be responsible for administering the first examination, and the ACD shall be responsible for administering later editions. No fee shall be charged for the first taking of the examination. A fee of $100 will be charged for each subsequent taking of the examination.
Adopted 10/01/99
Each county shall be required to submit a plan to the ACD detailing how a reappraisal, whether performed in-house or contracted, will be accomplished over a prescribed time period.
The purpose of the plan will be twofold - First, to be certain that all the needed tasks of a reappraisal are completed, and second, to insure that all reappraisal projects meet a statewide standard of quality and uniformity.
The plan will include the county or contractor's calendar of scheduled events in order for the appraiser to locate, identify, and appraise all taxable property in accordance with state laws and administrative procedures.
The plan will specify that the first phase of the plan will be to canvass all parcels, will include site inspection with improvements reviewed, and all pertinent quantitative and qualitative data gathered, and improvements will be measured when necessary.
Provision will be made in each year of the reappraisal plan for the discovery, listing, and valuation of newly discovered and newly constructed property. Additionally, the reappraisal plan will detail plans for revaluation notices and the appeals process for these types of properties.
The required reappraisal plan must include detailed information including parcel counts, existing resources, expected production levels, personnel needs, and budgets. The appraisal plan must also acknowledge pre-established requirements relating to minimum qualifications of various employees, minimum progress at various points in time, and minimum levels of quality in regard to property valuations before notices of revaluation are mailed.
Adopted 10/01/99
On or before August 10, 1999, the ACD will mail a certified letter to each county assessor stating the year the county will be required to reappraise under Act 1185, and a date due for the first required reappraisal plan. Adopted 10/01/99
In the case of counties that fail an assessment ratio in 1999, the required reappraisal plan will describe a reappraisal that will be completed in 2001. For those plans, phase one (data collection) will cover the year 2000, and phase two (valuation) will cover the year 2001.
In the case of the first group of counties selected by the ACD to reappraise in 2002, the required reappraisal plan will describe a reappraisal which will be completed in 2002. For those plans, phase one (data collection) will cover the years 2000 and 2001, and phase two (valuation) will cover 2002.
In the case of the group of counties selected by the ACD to reappraise in 2003, the required reappraisal plan will describe a reappraisal which will be completed in 2003. For those plans, the first year, (2000) will cover the appraisal of new construction only, phase one (data collection) will cover the years 2001 and 2002, and phase two (valuation) will cover the year 2003.
In the case of the group of counties selected by the ACD to reappraise in 2004, the required reappraisal plan will describe a reappraisal which will be completed in 2004. For those plans, the first two years (2000 and 2001) will cover the appraisal of new construction only. Phase one (data collection) will cover the years 2002 and 2003, and phase two (valuation) will cover the year 2004.
Adopted 10/01/99
Exceptions to the requirements listed above would include those counties that have a reappraisal underway in 1999, whether a contracted reappraisal, or an In-house reappraisal, with an anticipated completion date of 2000 or 2001. Those reappraisals will be allowed to continue, and will be eligible for funding beginning in January, 2000. When those reappraisals are completed in 2000 or 2001, the county will be required to submit a new, 3 year reappraisal plan, with an appropriate completion date of 2003, or 2004.
A further exception to RULE 3.07 would be that if a county is selected by the ACD to reappraise in 2004, but already has a reappraisal underway that is due to complete in 2000 or 2001, the reappraisal plan will not be limited to appraising new construction only in the first two years.
Adopted 10/01/99
The ACD will provide a complete format for the reappraisal plan, and the plan will be required to be completed on this specific form. Any variation from these standardized plans must be pre-approved by the ACD.
Adopted 10/01/99
Reappraisal plans shall contain detailed parcel count information in two formats, using the forms described in Rule 5.2 as A-13 AParcel Count Form A@ and A-14 AParcel Count Form B@.
Adopted 10/01/99
Amended 12/20/00
Reappraisal plans will specify exact order in which townships will be reviewed during phase one of the reappraisal. An alternative will allow the reappraisal plan to appraise all cities in a county first, and then appraise all non-city properties in township order. Regardless of which plan is utilized, appraisers will be required to meet or exceed the monthly production tables established in the reappraisal plan.
Reappraisal plans will specify expected progress by township or city, and number of parcels, planned for each month, during phase one of the reappraisal. A breakdown by city or township-range is not required for phase two of the planned progress report. However, a projected total per month is required. For these purposes, "month" is defined as the 20th of the preceding month through the 19th of the current month.
Adopted 10/1/99
Amended 3/03/02
Each reappraisal plan will name a specific person as manager of the reappraisal.
Adopted 10/01/99
Reappraisal plans will list in reasonable detail the reappraisal resources already existing within a county. Those resources shall include but not be limited to: Computer hardware, mapping records, available office space, vehicles, existing personnel (listed by certification levels and current job duties).
In particular, the reappraisal plan will describe computer hardware and mapping records currently available, and will describe office space available for the purpose of real estate appraisal. The reappraisal plan will list in detail how much physical data has already been gathered by field appraisers and entered into the county's CAMA system. The reappraisal plan will also describe the level of data entry regarding real estate sales information.
Adopted 10/01/99
Each county that undertakes an in-house reappraisal must provide and attach a copy of a reappraisal budget to the reappraisal plan. The reappraisal budget will be on a prescribed form furnished by the ACD and will cover all costs associated with the reappraisal of real estate.
Adopted 10/1/99
Manpower needs necessary for any reappraisal are calculated based on known parcel numbers, working days available, and anticipated production levels per worker. Production levels shown in rules 3.15.1 through 3.15.4 are minimum production levels, per worker, per day, to be used for the preparation of appraisal budgets for those counties which choose to perform in-house reappraisals.
Adopted 10/01/99
|
Entry of sales data |
100 |
|
Residential |
|
|
Physical data collection |
25 |
|
Physical data entry |
40 |
|
Data entry review |
250 |
|
Valuation |
150 |
|
Commercial |
|
|
Physical data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
Adopted 10/01/99
|
Entry of sales data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
50 |
|
Physical data entry |
40 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Physical data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
Adopted 10/01/99
|
Entry of sales data |
100 |
|
Residential |
|
|
Physical data collection |
40 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Physical data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
Adopted 10/01/99
|
Entry of sales data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
75 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Physical data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
Adopted 10/01/99
All expenses associated with the cost of maintaining current real estate appraisals on county assessment records deemed appropriate, necessary, and reasonable by the ACD, shall be reimbursed to the county. Those expenses, in general, may be considered to include salaries, office expenses, computer purchase and support, vehicle mileage expenses, and public relations. No expense that is not shown in the original budget or original request for special needs funding will be considered for reimbursement.
Adopted 10/01/99
Funding for all reappraisals required under Act 1185 of 1999 will be in the form of a reimbursement for expenses first paid by counties, either to county assessor's budgets, or to reappraisal firms. Appraisal plan and/or appraisal contracts must be approved before reimbursement begins. The state may withhold the last four reimbursement payments until the reappraisal has been completed in accordance with the rules and regulations of the ACD, whereupon payments will be released less any costs or expenses for corrective action. Withholding will commence with the plans starting in 2003.
Adopted 10/1/99
Amended 3/03/02
In-house reappraisal plans must bear the notarized signatures of the county assessor, chairman of the Board of Equalization, county judge, and the appraisal manager. The plan must be approved by a quorum court appropriation ordinance.
Adopted 10/01/99
Amended 12/20/00
Contracted reappraisal plans must bear the notarized signatures of the county assessor, chairman of the Board of Equalization, county judge, an agent of the reappraisal company performing the reappraisal, and the appraisal manager. The plan must be approved by a quorum court appropriation ordinance.
Adopted 10/01/99
Amended 12/20/00
The appraisal manager will send to the ACD, by the twentieth day of each month, a signed progress report, detailing reappraisal progress made from the 20th of the preceding month through the 19th of the current month. The progress report will be on a specific form prescribed by the ACD. The reappraisal manager will provide a copy of the progress report to the county assessor, board of equalization, county judge and quorum court each month.
Adopted 10/01/99
Amended 12/20/00
Reimbursement for reappraisal costs from the state to the county will be made in even payments, once each month, at a level to be determined by dividing the total cost of reappraisal (as indicated by the original appraisal plan) by the total number of months indicated in the reappraisal plan, unless a revenue shortfall should occur. In that instance, at least one payment will be less than normal.
Adopted 10/01/99
Reimbursements will be done in the form of a direct deposit. Each county/company must have an established account and submit necessary paperwork (voided check, signed permission form, etc.) before the reimbursement process begins.
Adopted 10/01/99
Amended 12/20/00
In the event the total monies budgeted for reappraisals statewide runs higher than the fiscal year appropriation to the ACD, the June payment for each county or contractor will be reduced on a pro-rata per parcel basis to prevent deficit spending.
Adopted 10/01/99
The ACD will periodically enter each county during both phase one and phase two of the county's reappraisal to conduct a performance audit (hereinafter designated as a PA). The purpose of these audits will be to ensure the reappraisal progresses as planned in a systematic and accurate fashion, and to determine if generally accepted methods and techniques are being uniformly employed.
The ACD will conduct Appraisal Manager seminars. Appraisal managers must attend at least one such seminar a year to maintain Appraisal Manager status.
Adopted 10/01/99
Amended 3/03/02
The PA will measure both the quantity and quality of the following: entry of general appraisal information, collection and entry of field data, and entry of sales information.
The PA will compare gross progress of physical data collection and CAMA entry to the required progress established by the county's reappraisal plan. Additionally, the PA will review quantitative and qualitative data from the property record cards of a random sample of improved properties.
All warranty deeds which contain sales information helpful in the appraisal process must be entered into the county's CAMA system. Deed entries must include sale date, book and page, revenue stamps or sale amount (if any), and grantor/grantee information.
The appraisal manager will assure that a reasonable attempt is made to obtain sales price and confirm validity of all warranty deeds.
Interior inspections of residences are not required and inaccuracies involving those items will not be regarded as errors for the purposes of the audit.
Adopted 10/01/99
Amended 12/20/00
The basic design of property record cards by each class must be approved by ACD. The following entries are required (where applicable):
City and Rurban Cards:
Type of Card
Parcel Number
Ownership Record and Description
(Include property address when available)
Sales History
Appraisal Summary
Assessment Summary
Land Record and Computation of Land Value
(Lot size is recommended but not required. However, a breakdown of value per lot should be included)
Review Record
Number of Cards and Card Number
Sketch
All Applicable Data Collection and Valuation Fields
Inspected Date, Inspected By
Reviewed Date, Reviewed By
Entered Date, Entered By
Rural Cards:
Type of Card
Parcel Number
Ownership Record and Description
(Include property address when available)
Sales History
Appraisal Summary
Assessment Summary
Review Record
Land Record and Computation of Land Value
(Lot size and production capability pricing is required)
Review Record
Number of Cards and Card Number
Sketch
All Applicable Data Collection and Valuation Fields
Inspected Date, Inspected By
Reviewed Date, Reviewed By
Entered Date, Entered By
Commercial/ Industrial Cards:
Parcel Number
Ownership Record and Description
(Include property address when available)
Sales History
Appraisal Summary
Assessment Summary
Land Record and Computation of Land Value
(Lot size and value per lot is required.)
Review Record
Number of Cards and Card Number
Sketch
Property Description
Structural Elements
All Applicable Data Collection and Valuation Fields
Inspected Date, Inspected By
Reviewed Date, Reviewed By
Entered Date, Entered By
Adopted 10/01/99
Amended 12/20/00
Amended 3/03/02
ACD auditors will review sales analysis and other procedures used in the development of overall values. This includes, but is not limited to, audits of neighborhood delineation, lot values, and location factors.
Valuation entry fields on parcel cards will be checked for accuracy.
Sales ratio studies will be utilized to audit final values.
Entry of sales information will be audited during both phase one and phase two.
Adopted 10/01/99
Amended 12/20/00
Residential neighborhood boundaries shall be displayed on city or county maps as appropriate.
A narrative description of each boundary line for each neighborhood shall be on file at the appraisal manager's office. In addition, a printout of the sales database used in determining the boundaries shall be kept in the same file.
Residential neighborhoods that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. However, the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude boundary location.
Adopted 10/01/99
Commercial neighborhood boundaries shall be displayed on city or county maps as appropriate.
A narrative description of each boundary line for each neighborhood shall be on file at the appraisal manager's office. In addition, a printout of the sales database and rental database used in determining the boundaries shall be kept in the same file.
Commercial neighborhoods that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. Rental data should be collected unless all commercial properties in the neighborhood are owner occupied. If neither sales nor rental data are available the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude the boundary location.
Adopted 10/01/99
Rural region boundaries shall be displayed on county maps.
A narrative description of each boundary line for each rural region shall be on file at the appraisal manager's office. In addition, a printout of the sales database used in determining the boundaries shall be kept in the same file.
Rural regions that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. Whether sales data are available or not the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude the boundary location. In addition, the appraiser shall list the property specific characteristics, i.e. paved road, municipal water, school district boundaries, etc., that are used to adjust from the general value trends and dollar influences each of these characteristics has on the property.
Adopted 10/01/99
When using the cost manual, location factors shall be used to adjust costs to the proper level in each neighborhood. The overall location factor for a neighborhood shall be determined from analysis of individual sales using the basic formula: Location Factor = Improvement Value (Sale Price Less Lot Value) RCNLD (Replacement Cost New Less Depreciation). Valid sales of properties from new to three years old should be used for the most accurate work. Sales should not have substantial improvements other than the house. Any item not being valued from the manual should be subtracted from the selling price. Accurate lot values are necessary. Statistical software can be utilized to provide additional analysis and accuracy. Comparative analysis can be used for neighborhoods where appropriate sales are insufficient.
Adopted 7/10/01
Reappraisal performance must conform to these Rules and Regulations, and the appraisal process must uniformly employ logical and generally accepted methods and techniques that are necessary to produce credible appraisals.
Phase 1 completed parcels are those which have had data collection/review and data entry. Phase 2 completed parcels are those for which valuation and corresponding entry into the CAMA system is complete. The cumulative number of parcels which are Phase 1 complete must be at least 90% of planned progress unless sufficient reason is provided on the monthly progress report and approved by ACD. For each property type, valuation must be complete for at least 50% of the parcels, subject to minor revisions, by April 19th of the valuation year.
For each performance audit, total errors and/or omissions must not exceed 5% for any general or specific element of the appraisal process.
Failure to list a dwelling or other major improvement or placement of that improvement on the wrong parcel may not occur on more than 2% of the parcels.
Individual perimeter measurements of one-story dwellings must be accurate within one foot. Estimated measurements will be allowed for additional levels and for items such as driveways or fences, but these estimates should be based on techniques resulting in reasonable accuracy.
All real estate improvements must be listed on each property record card. Those improvements that are deemed to have no contributory value by the appraiser must be listed with minimal description and coded uniformly by CAMA providers. Dimensional elements of NCV improvements are optional. Failure to list all such improvements will be counted on the PA as an error.
The ACD will periodically audit entry of sales information during both Phase 1 and Phase 2 of the reappraisal. All deeds which necessitate a change of name or legal description that are more than 30 days past their filing date must have been entered into the county's CAMA system. Errors and/or omissions shall not exceed 5% of the total entries.
Adopted 10/01/99
Amended 12/20/00
Amended 3/03/02
Amended 07/05/04
The Director of the Department may, for cause, and after opportunity for a hearing, suspend or terminate the contract of any appraisal firm or county, suspend or terminate the appraisal manager status of an appraisal manager, or remove an appraisal firm from the list of eligible contractors.
Whenever an audit indicates standards established elsewhere in these rules have not been met, the responsible party will be given the opportunity to dispute the audit results. Upon a final determination that standards have not been met, the Director of the Department MAY declare the reappraisal to be out of compliance and/or require corrective action.
Factors influencing the Director's decision shall include, but are not limited to (1) the significance of the problem, (2) the cause of the problem, and (3) previous violations.
Value-related elements are considered significant for these purposes when they are estimated to affect market value by $2,000 or more.
An insignificant problem can become significant when the county or appraisal firm fails to correct the problem.
When the reappraisal is determined to be out of compliance, that finding will be reported by certified mail to the county assessor and appraisal manager and reappraisal funding will be withheld. The aforementioned letter will be copied to the board of equalization, county judge, quorum court, and the contractor when applicable.
If funding has been withheld, the responsible party must sign, date, and return the enclosed Compliance Verification Form (Form A-17) within 30 calendar days of the date of the certified letter and take corrective action as required or funding will be subject to termination, pending results of a hearing if one is requested. Withheld funds will be released and payments will be resumed in accordance with the specifications of the Compliance Verification Form.
Adopted 10/01/99
Amended 4/2/01
Amended 3/3/02
Amended and implemented 4/6/04 by emergency procedure
Amended 07/05/04
Funding already disbursed to the county as a result of misrepresentation will be required to be reimbursed to the state, unless the action is determined, by the ACD Director, to be unintentional.
Adopted 10/01/99
Amended 07/05/04
The foregoing provisions notwithstanding, the ACD may grant additional time in the event of delay caused by an act of God or force majeure.
Adopted 10/01/99
Each county must have a CAMA system before being eligible for funding. Adopted 10/01/99
All data entered into a county's CAMA system immediately becomes the property of that county.
Adopted 10/01/99
All CAMA systems, whether located in the courthouse or a remote site (example: appraisal contractor's office) will be able to provide the following reports to the ACD, both on-site, and via phone modem:
CAMA systems utilized by the county or appraisal contractor to perform a reappraisal must be able to tabulate a parcel count by the categories requested elsewhere in these rules.
Physical data must be entered in such a way that parcel counts required in these rules may be run in a single report.
Adopted 10/01/99
Amended 3/03/02
If necessary, the CAMA system vendors will cooperate fully to convert data from their CAMA system to that of another vendor. This will occur when a county has acquired a different CAMA system due to its own actions or has allowed an appraisal contractor to do so. A contract will be negotiated between the county and the vendor of the CAMA system. The data to be converted will be defined in the contract, but will include at a minimum the property record card data. If a fee is charged for this service it shall be limited to a reasonable amount.
Adopted 10/01/99
All contracted reappraisals will utilize standardized bid specifications developed by the ACD. Any variations from these standardized bid specifications must be approved by the ACD. All bid specifications must be submitted to the ACD 30 days before advertising for requests for proposals. Limiting conditions that unfairly restrict competition will not be allowed.
Adopted 10/01/99
Amended 12/20/00
Amended 3/03/02
Each county that contracts reappraisal services will be required to advertise for bids for the planned reappraisal and to mail a copy of the notice/bid invitation to all companies listed on the ACD Annual Register of Appraisal Companies at the time of advertising. The notice/invitations to bid shall include the number of parcels, the time/date deadline for submitting bids (not less than 10 working days from the day the notice/invitations to bid are mailed out) and that any bids submitted by a contractor that do not meet the ACD approved specifications shall be rejected by the county. The notice/invitation to bid shall also include a statement that the contractor may obtain a copy of the bid specifications by contacting the County Assessor and requesting that the specifications be mailed, emailed, or faxed to him. The county shall submit to the ACD a copy of all bids received. In the event the county chooses to employ an appraisal firm other than the firm that submits a low bid, the county assessor must submit a written narrative explaining the county's choice of firms. The narrative must be attached to the proposed appraisal contract, and explain in detail what criteria were utilized to make the decision to hire a firm other than the low bidder. Failure to comply with this rule will result in rejection of the proposed appraisal contract.
To assist counties in making judgments as to contractor's qualifications and past performance, the ACD shall provide the following information about each contractor to the assessor, county judge, equalization board, and school superintendents in each county requesting bid for reappraisal contracts:
Adopted 10/01/99
Amended 12/20/00
Amended 3/03/02
Amended 07/05/04
All reappraisal contracts will allow for "payment in kind@ services to be provided by county employees who participate in the reappraisal. This provision will require the appraisal contractor to reimburse the county for work contributed to the reappraisal project by county employees, on a pre-agreed basis. The provision will also provide for the appraisal contractor to have reasonable control over those employees regarding job duties, expected production, and work quality. The provision will also allow the appraisal contractor to reject poor quality work performed by a county employee, which will relieve the contractor of any obligation to pay for such work.
Adopted 10/01/99
Every county assessor must submit a reappraisal plan by a date specified by the ACD. The ACD will review the plan and approve the plan as written or require an amended plan. The ACD may require a letter of understanding in order to clarify areas of responsibility or other elements of the plan.
Adopted 10/01/99
Amended 3/03/02
Any county that is performing an in-house reappraisal must submit a reappraisal budget on a form designated by the ACD, detailing projected expenses for personnel, office expenses, and all other expenses associated with the reappraisal of real estate, with the required reappraisal plan.
Adopted 10/01/99
Any county that is performing a contracted reappraisal must submit a signed reappraisal contract, detailing total expense for the reappraisal, with the required reappraisal plan.
Adopted 10/01/99
Should any part of a reappraisal plan fail to meet generally accepted standards, the ACD shall reject the plan.
Adopted 10/01/99
Those counties that are compelled to reappraise due to low assessment ratios are not relieved by Act 1185 of 1999 from the legal obligations previously established by Acts 440 and 836 of 1997. A county that fails an assessment ratio must complete a countywide reappraisal in compliance with Act 440 and/or 836 of 1997. Funding will be available for those counties, but may not exceed the cost to reappraise, or a maximum of seven dollars per taxable parcel, per year.
Adopted 10/01/99
Amended 12/20/00
Amended 3/03/02
Each county will be allowed to submit a request for Aspecial needs@ funding to pay for extraordinary mapping needs, computer updates, etc., along with the county's reappraisal plan. After funding for reappraisals has been allocated, these special needs requests will be considered by the ACD.
Adopted 10/01/99
For the tasks listed in this section, certain minimum qualifications are hereby established, which must be met in order for the work performed to be considered valid. Before an employee, either county employee or appraisal contractor employee, may perform the following tasks, they must first have completed the ACD classes listed, or have attained the Appraiser Certification Level shown by the particular task.
Adopted 10/01/99
Appraisal Manager- Level 4 Appraiser as certified by State of Arkansas Training and Certification Program, or IAAO educational equivalent, with a minimum of four years experience in the mass appraisal field, and successful completion of the reappraisal proficiency exam.
An appraisal manager may tentatively be responsible for a maximum of one hundred thousand parcels, with the exception of those reappraisal managers responsible for the reappraisal of individual counties with a parcel count exceeding one hundred thousand parcels. Exceptions to this rule may be granted by the ACD under certain conditions, dependent on distance and other factors.
Adopted 10/01/99
Collection of Quantitative Physical Data, Residential Property - Employer Training
Collection of Qualitative Physical Data, Residential Property - Level 2
Collection of Quantitative Physical Data, Commercial Property- Level 3
Collection of Qualitative Physical Data, Commercial Property - Level 3
Establishment of Neighborhood Delineation/ Location Factors - Level 4
Preliminary Valuation - Level 4
Informal Appeals, Residential Properties - Level 3
Informal Appeals, Commercial Properties - Level 4
Board of Equalization Appeals - Level 4
County Court Appeals - Level 4
Circuit Court Appeals - Reappraisal Manager
Adopted 10/01/99
Amended 12/01/00
Whether the reappraisal discussed in these rules is simply a review of existing data, or a more extensive reappraisal where every improvement is measured, funding to any county will be for the actual appraisal cost, up to a maximum of seven dollars per parcel, per year.
Adopted 10/01/99
In those counties where only new construction will be appraised in 2000 or 2001, reasonable costs for that appraisal work, as determined by the ACD, whether conducted in-house or by an appraisal firm, will be eligible for reimbursement. Those appraisal expenses will be reviewed on a county-by-county basis.
Adopted 10/01/99
Certain duties of the assessor's office, including day to day maintenance of ownership records, property owners/taxpayers inquiries, and the assessment of personal property or mineral rights are not parts of the reappraisal process, and are not eligible for funding under Acts 1155 and 1185 of 1999.
Adopted 10/01/99
Agricultural lands - Lands used for the production of timber, agricultural crops, or pasture. Each parcel not exceeding five acres in size will be assessed based upon market value, excepting those parcels for which the property owner can provide evidence of a genuine agricultural, pasture or timber use. The words agricultural, pasture or timber use mean that the land is managed in a fashion that indicates it is being used in the production of crops, livestock or lumber with a view toward profit.
City lands - Lands within the limits of an incorporated city.
Contracted reappraisal - A reappraisal conducted by non-county employees, and overseen by an appraisal manager who is an employee or principal in a reappraisal contracting firm.
In-house reappraisal - A reappraisal conducted by employees of the county, and overseen by an appraisal manager. The appraisal manager may be an employee of the county or a contract appraisal manager.
Neighborhood - A portion of a larger community, or an entire community, in which there is a homogeneous grouping of inhabitants, buildings, or business enterprises. It is that area within which any change has an immediate and direct influence on the value of the subject property.
Parcel - All contiguous land capable of being conveyed on a single deed, except when that tract of land crosses taxing unit boundaries, township lines, or section lines. Improvement only assessments are considered a parcel irrespective of the land on which it is located. In circumstances where land otherwise defined as a parcel by necessity and convenience must be listed in more than one of the assessor's books (City and town, Rural, and Rural Platted Sub division) it may be divided into separate parcels; each portion listed in the appropriate assessor book. Any legal description shall not be listed on more than one parcel. Ownership of a parcel by multiple persons does not constitute multiple parcels. Control cards, information cards, and mineral rights parcels are not to be counted as parcels for use when applying Act 1185 of 1999.
Reappraisal - The estimating of the value of all taxable real property within the county as of a given date within a given time frame.
Rurban lands - Lands in a recorded, platted subdivision which lie outside the limits of any incorporated city.
Sectionalized Aerial Photos - the process of drawing and/or displaying linear representations of Section, Township and Range lines on aerial photography and labeling same.
Adopted 10/01/99
Amended 3/03/02
Amended 07/05/04
In order to effect the successful implementation of Act 1185 of 1999, contingent upon prior review of the Legislative Council of the General Assembly of the State of Arkansas, and upon good cause being shown, the Director of the Department may waive or suspend any provision of the rules.
In the event of the granting of a waiver or suspension of any one or more of these Rules, each County Assessor and Contractor will be notified.
Adopted 10/01/99
Amended 3/03/02
CHAPTER FOUR IMPLEMENTATION OF SPECIFIC STATUTES
STATUTORY AUTHORITY: A.C.A. 14-14-904 (Acts. 1997, No. 1300 Section 24)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 25-15-203, 26-24-107, 26-26-308 and 26-26-409
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-24-108 ( Acts 1927, No. 129 Section 12; Pope's Dig., Section 2038)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-304 ( Acts 1955, No. 153 Sections 9,12; Acts 1957, No. 304 Section 1; Acts 1959, No. 31 Section 1; Acts 1959, No. 244 Section 1; Acts
1969, No. 60 Section 1; Acts 1987, No. 838, Section 1; Acts 1997, No. 440 Section 2(g).
Adopted 10/01/99
References to "counties" in these rules include contractors or vendors who work for or assist counties in the revaluation and assessment process.
Each sale shall contain the following items.
. Parcel number
. Section, township, and range or subdivision
. The existing land, building, and total value of the property before consideration of value caps, partial exemptions, etc.
. The primary use code of the property
. Market area
. Neighborhood
. School district
. The land size and unit of measurement (acres, square feet, etc.)
. The living area, construction grade, grade adjustment factor, year built if available, and effective age or remaining economic life percentage of the primary building in the case of residential properties
. The Marshall & Swift building class code (A, B, C, D, or S), occupancy type code, gross building area, year built, effective age, and remaining economic life in the case of commercial and industrial properties
. The sale date, deed book and page, deed type, grantor, grantee, and sale validation code for the most recent warranty or special warranty deed sale of the property
. The sale price and any adjustments to the price for personal property, etc.
. Sales/Ratio related comments.
The file shall contain one row per property and must be in ASCII fixed field, ASCII comma separated value (csv), Excel, or Quattro Pro format, or in a format that is directly compatible with Excel.
. Parcel number
. Section, township, and range or subdivision
. The new land, building, and total value of the property before consideration of value caps, partial exemptions, etc.
. The prior land, building, and total value before consideration of value caps, partial exemptions, etc.
. The primary use code of the property
. Market area
. Neighborhood
. School district
. The land size and corresponding unit of measurement
. The living area, construction grade, grade adjustment factor, year built if available, and effective age or remaining economic life percentage of the primary building in the case of residential properties
. The Marshall & Swift building class code (A, B, C, D, or S), occupancy type code, gross building area, year built, effective age, and remaining economic life in the case of commercial and industrial properties
. The sale date, deed book and page, deed type, grantor, grantee, and sale validation code for the most recent warranty or special warranty deed sale of the property
. The sale price and any adjustments to the price for personal property, etc.
. Sales/Ratio related comments.
The file shall contain one row per property and must be in ASCII fixed field, ASCII comma separated value (csv), Excel, or Quattro Pro format, or in a format that is directly compatible with Excel.
|
00 |
UV |
Unvalidated sale |
|
01 |
VS |
Valid sale |
|
02 |
GO |
Sale to or from a government agency |
|
03 |
CH |
Sale to or from a charitable, religious, or educational institution |
|
04 |
FI |
Sale in which a financial institution is the buyer in lieu of foreclosure, or in which a financial institution is the seller and the property is not exposed to the open market |
|
05 |
RL |
Sale between related parties |
|
06 |
CV |
Sale of convenience, e.g., to correct a title defect or create a joint tenancy |
|
07 |
ES |
Sale settling an estate |
|
08 |
FS |
Forced sale - seller is sheriff, receiver, or court officer |
|
09 |
DT |
Sale of doubtful title |
|
10 |
TR |
Sale involving a trade |
|
11 |
PI |
Sale of a partial interest in the property |
|
12 |
CT |
Sale involving a land contract (including payoff of the contract) |
|
13 |
CS |
Significant improvement (e.g., room addition or renovation) to a property between sale date and assessment date |
|
14 |
AS |
Assemblage sale - purchase of an adjoining property at a premium price |
|
15 |
MU |
Sale of multiple properties that fail to constitute an economic unit (includes bulk sales of properties to a developer or builder) |
|
16 |
PP |
Sale involving personal property of significant but undeterminable value (see discussion in 4.3) |
|
17 |
OT |
Sale involving non-market financing or other non-real estate considerations of significant but undeterminable value (see discussion in 4.4) |
|
18 |
FD |
Future Development/Sale includes new dwelling to be assessed |
|
19 |
MH |
Sale includes mobile home |
|
20 |
AL |
Land priced as AG/ not priced at market value |
|
21 |
DV |
Sale impacted by divorce |
|
22 |
IS |
Sale amount insufficient to be used in sales analysis |
|
23 |
NM |
Property not listed for sale on open market |
|
24 |
RC |
Relocation/Buyback |
|
25 |
VA |
Primary parcel of a group of parcels that have sold |
|
26 |
AP |
Additional parcels that are linked to the primary parcel |
No county will be bound by this rule, for the market area provision only, on its first ratio study after passage of this rule.
No county will be bound by this rule on its first ratio study after passage of this rule.
$ Residential property. The COD must be 15.0 or less in market areas with a median year built of 1960 or greater and a median sale price of $60,000 or more. Other residential CODs must be 20.0 or less.
$ Vacant land. CODs must be 25.0 or less in each market area.
$ Commercial property. The COD must be 20.0 or less in counties with 50,000 or more parcels and 25.0 or less in smaller counties.
As experience is gained, the ACD may tighten these standards so that they are closer to or equivalent with IAAO standards for the COD.
No county will be bound by this rule, for the market area provision only, on its first ratio study after passage of this rule.
AGRICULTURAL LAND CLASSIFICATION
In conducting this component of the ratio study, the Arkansas Assessment Coordination Department shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers standards on ratio studies. (See Standard on Ratio Studies,approved July 1990, International Association of Assessing Officers or the current edition of same, hereafter referred to as 'SORS", which incorporates selected chapters and appendices of the Property Appraisal and Assessment Administration, published by the International Association of Assessing Officers, 1990 edition or current edition, hereafter referred to as "PAAA").
METHOD OF DETERMINING AGRICULTURAL LAND SAMPLES
If it is determined that a County had adopted the schedule of values established by the ACD, a minimum of fifty agricultural parcels shall be selected from each county; however, if it is determined that the County has not adopted the schedule of values, seventy-five samples shall be selected. If the county's ratio is below fourteen percent, 100 samples shall be selected. If the County has adopted the schedule of values established by the ACD and there are minor problems relating to disparity, 60 samples shall be selected. A rural parcel count shall be taken of the county. The appropriate number of samples shall be divided in accordance with the proportion of rural parcels per school district.
SELECTION OF SAMPLES
At the same time as the other real estate sample requirements are provided the Field Auditor, instructions as to the number of agriculture samples to be obtained shall be provided.
Prospective samples shall be selected at random. Those which bear a notation that the values have been modified for reasons other than poor management by the property owner shall not be used in the study. Any prospective sample to be excluded in this manner shall be recorded and documentation as to the validity of the exclusion obtained, otherwise the sample shall be included.
The Field Auditor shall be provided a County map with school districts denoted thereon. Each year for a period of three years, the Field Auditors shall note thereon the sections from which each year's samples have been pulled. A parcel shall not be included in the sample more than once in a three-year period. Field Auditors must visually inspect each parcel site to determine its use.
PROCEDURE
In July of each year the ACD will perform a ratio study to determine whether the county has used the Agriculture Land Value Tables published by the ACD in compliance with Arkansas code 26-26-407. The following is the procedure used by ACD it determining each county's Agricultural Land ratio:
BUSINESS PERSONAL CLASSIFICATION
This component of the ratio study shall be based on a physical examination of the current year's records of each assessor's office to determine the degree of compliance with the criteria established in the Commercial Personal Property Appraisal Manual published by the Arkansas Assessment Coordination Department.
When the fieldwork commences for the current year, instructions as to the number of business personal commercial samples shall be provided.
METHOD OF DETERMINING NUMBER AND LOCATION OF SAMPLES
The minimum sample size for each county shall be determined by the population of the county as reflected in the latest final census figures and the number of businesses therein. Those counties with populations: of 29,999 and below shall have 20 samples; of 30,000 through 69,999 shall have 40 samples; of 70,000 through 199,999 shall have 50 samples and of 200,000 and above shall have 90 samples.
SELECTION OF SAMPLES
After determining the total business personal parcels in the county, the number of samples needed shall be divided into that figure to set the selection interval; however, if a business tentatively selected by this method results in a sample that does not fit into a category recognized in the square foot section of Commercial Personal Property Appraisal Manual, then the next business shall be selected.
PROCEDURE
Commercial Personal Property Takeoff Form.
RATIO COMPUTATION
AUTO/OTHER CLASSIFICATION
This component of the ratio study shall be based on a physical examination of the current year's records of each assessor's office to determine the degree of compliance with the criteria established in the current year edition of the Personal Property Assessment Manual published by the Arkansas Assessment Coordination Department.
METHOD OF DETERMINING NUMBER AND LOCATION OF SAMPLES
The minimum sample size for each county size shall be determined by the population of the county as reflected in the latest final census figures and the number of businesses therein. Those counties with populations: of 29,999 and below shall have 40 samples; of 30,000 to 69,999 shall have 70 samples; 70,000 to 199,999 shall have 100 samples and of 200,000 and above shall have 180 samples.
SELECTION OF SAMPLES
The Field Auditor shall be instructed to get samples of automobiles from the current year through the last fifteen years and of trucks from the current year through the last fourteen years. Only one vehicle shall be taken from each assessment.
PROCEDURE
Since there is no consistent method of filing assessments containing automobiles, i.e., some being filed alphabetically by school district, some alphabetically by county and in many instances, the computer is available for us, samples shall be selected randomly by the Field Auditor who notes the method chosen.
RATIO COMPUTATION
A comparison of the actual assessed value and the value computed utilizing the manual by the Field Auditor produces the ratio by county, by school districts and by cities in that County.
Terms used in connection with the ratio study on market value real property shall be as defined in Section 14, "SORS." AND "PAAA."
Adopted 10/01/99
Amended 12/20/00
Amended 07/05/04
The ACD shall maintain an Annual Register of Appraisal Companies and shall not approve a contracted appraisal plan of an Appraisal firm which has not registered with the ACD by submitting the following information:
Adopted 10/01/99
Amended 07/05/04
The Director of the Assessment Coordination Department may, for cause, remove an appraisal company from the list of registered contractors doing mass appraisal work within the State of Arkansas.
Adopted 07/05/04
STATUTORY AUTHORITY: A.C.A. 26-26-306 ( Acts 1997, No. 836 Section 2)
STATUTORY AUTHORITY: A.C.A. 26-26-308 ( Acts 1997, No. 836 Section 4)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-307 ( Acts 1997, No. 836 Section 3)
STATUTORY AUTHORITY: A.C.A. 26-26-308 ( Acts 1997, No. 836 Section 4)
In keeping with the intent of Act 836 of 1997, newly discovered and newly constructed property will be appraised and assessed at the value prevailing before the implementation of Act 758 of 1995.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-402 ( Acts 1981, No. 848, Section 1; Acts 1997, No. 1300, Section 22)
STATUTORY AUTHORITY: A.C.A. 26-26-409 (Act 1981, No. 848 Section 9)
Adopted 10/01/99
The following definitions apply to Amendment 59 to the Arkansas Constitution: Act 1981, No. 848.
The following definitions apply to Amendment 79 to the Arkansas Constitution.
The term "substantial improvements to real property" as used in Amendment 79, Sections 1(b)(2) and (1)(c)(2) does not include normal maintenance on an improvement intended to only maintain its existing utility.
Adopted 10/01/99
Amended 12/20/00
Amended 07/05/04
STATUTORY AUTHORITY: A.C.A. 26-26-401 (Act 1981, No. 848 Section 8) STATUTORY AUTHORITY: A.C.A. 26-26-410 (Act 1997, No. 1300, Section 23)
Coordination Department shall determine whether the County has completed a comprehensive county-wide reappraisal, and if so, shall certify the reappraisal.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-403 (Act 1981, No. 848, Sections Two and Nine.)
STATUTORY AUTHORITY: A.C.A. 26-26-410 (Act 1997, No. 1300, Section 23)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-404 (Act 1981, No. 848 Section Three) STATUTORY AUTHORITY: A.C.A. 26-26-410 (Act 1997, No. 1300, Section 23)
Form No. GB-1 entitled Base Year Millage Rollback Computation and Certificate Form is adopted to comply with this statute.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-405 (Act 1981, No. 848 Section 4)
STATUTORY AUTHORITY: A.C.A. 26-26-410 (Act 1997, No. 1300, Section 23)
Form No. CC-2 entitled Personal Property Interim Millage Adjustment is adopted to comply with this Statute.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-304 and 26-26-407
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-408 (Act 1981, No. 848, Section Seven)
STATUTORY AUTHORITY: A.C.A. 26-26-410 (Act 1997, No. 1300, Section 23)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-503 (Acts 1980 (lst Ex. Sess.) No. 48, Sections One, Two; 1985, No. 392, Sections One, Two)
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-1113 (c)(1); (Act 1987, No. 1040, Sections One, Two)
The Assessment Coordination Department shall promulgate reasonable rules and regulations to effectuate the provisions of this chapter.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-1114 (c); (Act 1989, No. 517, Section One; Act 1991, No. 291 Section One; Act 1993, No. 1261, Section One)
When assessing by telephone, record forms containing information taken by telephone shall be clearly identified as telephone assessments on the property owner signature line and shall bear the signature of the assessor or deputy assessor who conducted the telephone interview with the property owner.
Adopted 10/01/99
STATUTORY AUTHORITY: A.C.A. 26-26-1202; (Act 1883, No. 114, C. & M. Dig., No. 9919, Pope's Dig. No. 13653)
For the purpose of this Act, the following term(s) are defined:
Adopted 10/01/99
There is hereby established a Uniform Notice of Real Estate Value Change. The Notice shall be printed on paper no smaller than 8.5" wide by 11" long. All counties, contractors or others required to notify property owners of value changes shall employ the form displayed as item A-15 of Rule 5.2. No information set out in the form may be excluded but additional information may be displayed provided the Assessment Coordination Department gives prior consent. In instances where only new construction has occurred, notices may be modified to reflect that the value increase is a result of new construction only. Counties employing Section 1 of Amendment 79 shall not be required to list assessments in subsequent years on the form. Sending notices not conforming to the above shall constitute a violation of this rule, and when discovered, the responsible party will be required to send new notices, which comply with this rule, to affected property owners.
Adopted 10/01/99
Amended 7/10/01
If the Assessor becomes aware of Newly Discovered or Newly Constructed property in a non-reappraisal year, and the resulting increase in market value of the parcel caused by the Newly Discovered or Newly Constructed property is $5000.00 or more, the parcel will be updated and a notice will be sent to the Taxpayer. Any Newly Discovered or Newly Constructed property, having a market value of less than $5000.00 when discovered, may be listed and updated during the year of discovery and will be listed and updated during the appraisal year.
Adopted 07/05/04
There is hereby established a Homestead Credit Application/Sales Verification form. The form is to be used by property owners to apply for benefits under the provisions of Amendment 79 and to verify whether a property's purchase price reflects its market value at the time of sale. County assessors shall provide the purchaser of property with the form when a copy of a deed is transferred from the county recorder's office to the county assessor's office. As an alternative, the county assessor may provide the form to closing agents who may assist purchasers in completion of the form and who may return the form to the county recorder or assessor on behalf of the purchaser.
With prior approval by the ACD, the county may divide the form into separate parts, without changing the content, and distribute each part separately to property owners. Additional questions may be added to the form with prior approval by the ACD.
Adopted 3/03/02
CHAPTER FIVE ASSESSMENT COORDINATION DEPARTMENT VALUATION GUIDES AND FORMS
ARKANSAS ASSESSORS= REAL ESTATE COST MANUAL ACT 153 of 1955 as Amended
ARKANSAS COMMERCIAL PERSONAL PROPERTY MANUAL ACT 153 of 1955 as Amended
ARKANSAS PERSONAL PROPERTY MANUAL ACT 153 of 1955 as Amended
AGRICULTURAL LAND, PASTURE LAND AND TIMBER LAND GUIDELINE PUBLICATION
Adopted 10/01/99
FOR USE BY ASSESSORS OR REAPPRAISAL FIRMS:
|
A- 1. |
COMMERCIAL/INDUSTRIAL REAL ESTATE RECORD CARD |
|
A- 2. |
RESIDENTIAL REAL ESTATE RECORD CARD |
|
A- 3. |
RURBAN REAL ESTATE RECORD CARD |
|
A- 4. |
RURAL REAL ESTATE RECORD CARD |
|
A- 5. |
MANUFACTURERS= INVENTORY REPORT |
|
A- 6. |
COMMERCIAL PERSONAL PROPERTY ASSESSMENT FORM COMMERCIAL PERSONAL PROPERTY ASSESSMENT INFORMATION |
|
A- 7. |
ASSESSOR's ABSTRACT (A.C.A. 26-26-304) |
|
A- 8. |
SUMMARY REPORT OF COUNTY ASSESSMENTS |
|
A- 9. |
IN-HOUSE COUNTYWIDE REAPPRAISAL PLAN |
|
A-10. |
CONTRACTED COUNTY-WIDE REAPPRAISAL PLAN |
|
A-11. |
PLANNED PROGRESS REPORT |
|
A-12. |
MONTHLY PROGRESS REPORT |
|
A-13. |
PARCEL COUNT FORM A |
|
A-14. |
PARCEL COUNT FORM B |
|
A-15. |
NOTICE OF REAL ESTATE VALUE CHANGE |
|
A-16. |
CERTIFICATION OF COUNTY AS TO COMPLETION OF COMPREHENSIVE COUNTYWIDE REAPPRAISAL |
|
A-17 |
COMPLIANCE VERIFICATION FORM |
|
A-18 |
HOMESTEAD CREDIT APPLICATION/SALES VERIFICATION |
FOR USE BY COUNTY CLERK:
|
CC-1. |
SUMMARY REPORT OF COUNTY ASSESSMENTS FOR THE YEAR |
|
CC-2. |
PERSONAL PROPERTY INTERIM MILLAGE ADJUSTMENT (A.C.A. 25-26-405) |
|
CC-3. |
FRINGE DISTRICT ROLLBACK |
|
CC-4. |
CERTIFICATION OF ASSESSED VALUE DATA (A.C.A. 26-26-403) |
|
CC-5. |
SCHOOL DISTRICT CALCULATION TO DETERMINE MINIMUM MILLAGE REQUIRED BY AMENDMENT 74 |
FOR USE BY GOVERNING BODIES OF TAXING UNITS:
|
GB-1. |
COMPUTATION AND CERTIFICATION FORM. BASE YEAR MILLAGE ROLLBACK COMPUTATION AND CERTIFICATION FORM (A.C.A. 26-26-404) |
FOR USE BY EQUALIZATION BOARD & COUNTY CLERK AS EX-OFFICIO SECRETARY OF THE COUNTY EQUALIZATION BOARD:
|
E-1. |
EQUALIZATION BOARD MEMBERS AND ADDRESSES |
|
E-2. |
EQUALIZATION BOARD ABSTRACT OF ADJUSTED ASSESSMENT (A.C.A. 26-26-304, 26-27-319) |
|
E-3. |
EQUALIZATION BOARD RESOLUTION |
MISCELLANEOUS:
|
M-1. |
APPLICATION FOR ADMISSION - ARKANSAS ASSESSMENT TRAINING PROGRAM |
|
M-2. |
TRAINING AND CERTIFICATION PROGRAM |
Adopted 10/01/99
Amended 12/20/00
A-1 through A-4 are not available on disk.
PREFACE
In accordance with Act 1185 of 1999 _______________County, Arkansas (hereinafter referred to as the "County") is submitting the following In-House Countywide Reappraisal Plan (hereinafter referred to as the "Plan") to the Arkansas Assessment Coordination Department (hereinafter also referred to as "ACD") for its approval. The appraisal conducted in accordance with this Plan will be completed within ___ months, commencing _______________ , 20___ (date). In addition, the provisions of Amendment 59 to the Arkansas Constitution and Arkansas Code Title 26, Chapter 26, Sub-chapter 4 relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applied.
The County acknowledges, understands and agrees as follows:
IN-HOUSE COUNTYWIDE REAPPRAISAL PLAN
In-House Reappraisal Plan requires that the County perform as follows:
BASIC STANDARDS & PROCEDURES TO BE FOLLOWED WHEN CONDUCTING A COUNTYWIDE REAPPRAISAL
For this reason, the County will develop a complete and effective public relations program including the following activities:
Recognizing that taxpayer contact represents a public relations opportunity; employees will be trained:
Public relations will be the responsibility of all employees involved in the county wide reappraisal program, with the fundamental responsibility for implementation being the County Assessor.
On completion of the valuation process, the county will be responsible for a careful review of the estimates for each appraised parcel. This review and inspection shall be conducted by members of the appraisal staff to identify any errors that may have occurred, and to ensure accuracy and quality of the data collected. The county will consider the indicated value of the structure and indicated value of the land against sales information concerning comparable parcels. The reviewer is to ensure that each property has been valued in relation to other properties and in accordance with state law. This will be completed immediately before the change of value notification deadline.
The county shall carefully consider all factors affecting the value of land (such as zoning, location, shape, size, topography, access to railroads, roads, waterways, present use, etc.,) and will make appropriate adjustments when establishing final values. In the interest of fairness, equalization, and accuracy the base lot method shall be employed to determine the valuation of all market value land. IAAO defines the base lot method as: ".the standard or "base" in each stratum through a traditional sales comparison analysis with the base lot serving as the subject parcel. Once the base lot is established, it is used as a benchmark to establish values for individual parcels."1
To the extent practical, land value computations will be made in accordance with four categories as follows:
City and Rurban Residential - Front foot, square foot, or lot values
Rural residential - Per acre or lot values
Commercial - Front foot or square foot values
Industrial - Square foot or acreage values
All established base land values for vacant and improved parcels shall be recorded on the appropriate fields of the record card and carefully checked for accuracy. All land values shall be reviewed with the same accuracy and diligence as the buildings in conjunction therewith.
will be made by the project supervisor in the grading (or classifying) of dwellings to insure correct, uniform, and consistent grade classification use.
A perimeter sketch of each residential building will be drawn in the graph space provided on the data collection card and all necessary dimensions and identification symbols will be placed on this sketch. Appendages such as attached garages, porches, etc. shall be carefully shown, with dimensions and correctly labeled. All other information on the data collection card will be filled out completely.
Use value of all bona fide agricultural land will be calculated using the most recent per acre estimates furnished by ACD. The per acre use classification estimates include determination of soil type, cash rent analysis, production yield averages, cost of production averages, and an established income capitalization rate. The acreage of each soil type will be calculated and its use determined by physical inspection or recent aerial photographs. The determination of a property's use shall be discovered by visual inspection whenever possible. Determination of use by aerial photograph shall be used as last resort only when the subject property cannot be accessed by vehicle.
The taxpayer shall be given the opportunity to informally appeal the new assessed value. A taxpayer may file a complaint if the valuation of property has not increased or has decreased from the previous year. The taxpayer must petition to appeal before the equalization board by the third Monday in August, after which no petition for appeal will be accepted.
The County should project that 2% to 12% of all property owners will request a review of their appraisals with the reported national average being 5%.
The countywide reappraisal Plan will have quality assurance, performance analysis, and accuracy control for data entry.
The sales questionnaire phase will be ongoing throughout the cycle. In the field, a detailed interview will be conducted (when possible) with the resident in lieu of an interior inspection of each home. When data is in doubt a postage-paid questionnaire will be left on the door if no one is at home and the data collector has left the neighborhood.
Since the data collection will occur over an extended period and property characteristics may change during that period, a sales data maintenance program will be established.
EFFECTIVE PLANNING
The County acknowledges that it has utilized and adhered to the following precepts in the development of this Plan and that it will also utilize and adhere to the following precepts in the implementation of this Plan:
Performing an in-house reappraisal is a major undertaking for any county, and should not be approached in a rushed or casual manner. One key element to a successful reappraisal effort is adequate planning. Poor planning for a reappraisal is usually the result of the county attempting to plan a reappraisal around current staffing levels. If the county has failed to maintain property values with current staff, over the course of several years, a plan to reappraise thousands of real estate parcels over the course of eighteen to twenty months with those same employees is unlikely to be successful. A more appropriate approach is for the county to determine necessary staff levels based on the amount of appraisal work that must be completed in a fixed amount of time.
The following pages are to be utilized by the county to design a Plan which will ensure adequate manpower and other necessary resources available. The county should be acutely conscious of the following:
Those persons responsible for determining final values shall be a level 4 or higher appraiser, as determined by the Appraiser Training and Certification Program.
EXPECTED PRODUCTION LEVELS
In order to properly plan a reappraisal, a county must have some idea of how much work product each employee is expected to contribute daily. In the "Personnel Needs" section of the Plan, the county must assign expected daily production levels for different tasks using the following information. NOTE: These production levels were established by the 1185 Rules Committee, which was made up of County Assessors, Appraisal Contractors, and ACD personnel.
FULL REAPPRAISAL PROGRAM
USING DATA GATHERERS AND REVIEW APPRAISERS
|
Entry of Sales Data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
50 |
|
Physical data entry |
40 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
REVIEW APPRAISAL PROGRAM USING SINGLE APPRAISERS
|
Entry of sales data |
100 |
|
Residential |
|
|
Physical data collection |
40 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
REVIEW APPRAISAL PROGRAM
USING DATA GATHERERS AND REVIEW APPRAISERS
|
Entry of sales data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
75 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
PERSONNEL NEEDS
COUNTY ACKNOWLEDGMENT: the County acknowledges that the following analysis has been determined and set the personnel required for the successful implementation of this Plan and the staff determined to be necessary will be employed at the designated times.
BUDGETING FOR IN-HOUSE REAPPRAISAL
The following pages, entitled "In House Reappraisal - Budget", should provide a detailed accounting of anticipated costs for an in-house reappraisal program. Historically, most counties have not maintained appraisal personnel necessary for systematic real estate revaluation programs. As a result the expense of performing ten years of appraisal work in the next three years may be alarming to many county officials.
Readers of the Plan should be aware that the reappraisal expenses shown on the following pages are typically in addition to the assessors normal budget.
Care should be taken to not underestimate salaries necessary to retain qualified personnel. A county would be ill advised to anticipate hiring someone for an appraisal position, sending that person to appraisal classes, and expect to then keep a trained real estate appraiser on staff unless the county is willing to pay a competitive salary.
PREFACE
In accordance with Act 1185 of 1999 and Act 1058 of 2001 ______________________
County, Arkansas (hereinafter referred to as the "County") is submitting the following In-House Countywide Reappraisal Plan (hereinafter referred to as the "Plan") to the Arkansas Assessment Coordination Department (hereinafter also referred to as "ACD") for its approval. The appraisal conducted in accordance with this Plan will be completed within ___ months, commencing _______________ , 20___ (date). In addition, the provisions of Amendment 59 to the Arkansas Constitution and Arkansas Code Title 26, Chapter 26, Sub-chapter 4 relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applied.
The County acknowledges, understands and agrees as follows:
IN-HOUSE COUNTYWIDE REAPPRAISAL PLAN
In-House Reappraisal Plan requires that the County perform as follows:
BASIC STANDARDS & PROCEDURES TO BE FOLLOWED WHEN CONDUCTING A COUNTYWIDE REAPPRAISAL
For this reason, the County will develop a complete and effective public relations program including the following activities:
Recognizing that taxpayer contact represents a public relations opportunity; employees will be trained:
Public relations will be the responsibility of all employees involved in the county wide reappraisal program, with the fundamental responsibility for implementation being the County Assessor.
On completion of the valuation process, the county will be responsible for a careful review of the estimates for each appraised parcel. This review and inspection shall be conducted by members of the appraisal staff to identify any errors that may have occurred, and to ensure accuracy and quality of the data collected. The county will consider the indicated value of the structure and indicated value of the land against sales information concerning comparable parcels. The reviewer is to ensure that each property has been valued in relation to other properties and in accordance with state law. This will be completed immediately before the change of value notification deadline.
The county shall carefully consider all factors affecting the value of land (such as zoning, location, shape, size, topography, access to railroads, roads, waterways, present use, etc.,) and will make appropriate adjustments when establishing final values. In the interest of fairness, equalization, and accuracy the base lot method shall be employed to determine the valuation of all market value land. IAAO defines the base lot method as: ".the standard or "base" in each stratum through a traditional sales comparison analysis with the base lot serving as the subject parcel. Once the base lot is established, it is used as a benchmark to establish values for individual parcels."1
To the extent practical, land value computations will be made in accordance with four categories as follows:
City and Rurban Residential - Front foot, square foot, or lot values
Rural residential - Per acre or lot values
Commercial - Front foot or square foot values
Industrial - Square foot or acreage values
All established base land values for vacant and improved parcels shall be recorded on the appropriate fields of the record card and carefully checked for accuracy. All land values shall be reviewed with the same accuracy and diligence as the buildings in conjunction therewith.
1 Property Appraisal and Assessment Administration 1990 p. 188
followed for each building. Periodic inspections of work of all appraisal personnel will be made by the project supervisor in the grading (or classifying) of dwellings to insure correct, uniform, and consistent grade classification use.
A perimeter sketch of each residential building will be drawn in the graph space provided on the data collection card and all necessary dimensions and identification symbols will be placed on this sketch. Appendages such as attached garages, porches, etc. shall be carefully shown, with dimensions and correctly labeled. All other information on the data collection card will be filled out completely.
Use value of all bona fide agricultural land will be calculated using the most recent per acre estimates furnished by ACD. The per acre use classification estimates include determination of soil type, cash rent analysis, production yield averages, cost of production averages, and an established income capitalization rate. The acreage of each soil type will be calculated and its use determined by physical inspection. The determination of a property's use shall be discovered by visual inspection whenever possible. Determination of use by aerial photograph shall be used as last resort only when the subject property cannot be accessed by vehicle.
The taxpayer shall be given the opportunity to informally appeal the new assessed value. A taxpayer may file a complaint if the valuation of property has not increased or has decreased from the previous year. The taxpayer must petition to appeal before the equalization board by the third Monday in September, after which no petition for appeal will be accepted.
The County should project that 2% to 12% of all property owners will request a review of their appraisals with the reported national average being 5%.
The countywide reappraisal Plan will have quality assurance, performance analysis, and accuracy control for data entry.
The sales questionnaire phase will be ongoing throughout the cycle. In the field, a detailed interview will be conducted (when possible) with the resident in lieu of an interior inspection of each home. When data is in doubt a postage-paid questionnaire will be left on the door if no one is at home and the data collector has left the neighborhood.
Since the data collection will occur over an extended period and property characteristics may change during that period, a sales data maintenance program will be established.
EFFECTIVE PLANNING
The County acknowledges that it has utilized and adhered to the following precepts in the development of this Plan and that it will also utilize and adhere to the following precepts in the implementation of this Plan:
Performing an in-house reappraisal is a major undertaking for any county, and should not be approached in a rushed or casual manner. One key element to a successful reappraisal effort is adequate planning. Poor planning for a reappraisal is usually the result of the county attempting to plan a reappraisal around current staffing levels. If the county has failed to maintain property values with current staff, over the course of several years, a plan to reappraise thousands of real estate parcels over the course of eighteen to twenty months with those same employees is unlikely to be successful. A more appropriate approach is for the county to determine necessary staff levels based on the amount of appraisal work that must be completed in a fixed amount of time.
The following pages are to be utilized by the county to design a Plan which will ensure adequate manpower and other necessary resources available. The county should be acutely conscious of the following:
Those persons responsible for determining final values shall be a level 4 or higher appraiser, as determined by the Appraiser Training and Certification Program.
EXPECTED PRODUCTION LEVELS
In order to properly plan a reappraisal, a county must have some idea of how much work product each employee is expected to contribute daily. In the "Personnel Needs" section of the Plan, the county must assign expected daily production levels for different tasks using the following information. NOTE: These production levels were established by the 1185 Rules Committee, which was made up of County Assessors, Appraisal Contractors, and ACD personnel.
FULL REAPPRAISAL PROGRAM
USING DATA GATHERERS AND REVIEW APPRAISERS
|
Entry of Sales Data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
50 |
|
Physical data entry |
40 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
REVIEW APPRAISAL PROGRAM USING SINGLE APPRAISERS
|
Entry of sales data |
100 |
|
Residential |
|
|
Physical data collection |
40 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
REVIEW APPRAISAL PROGRAM
USING DATA GATHERERS AND REVIEW APPRAISERS
|
Entry of sales data |
100 |
|
Residential |
|
|
Quantitative data collection |
25 |
|
Qualitative data collection |
75 |
|
Physical data entry |
100 |
|
Data entry review |
250 |
|
Valuation |
200 |
|
Commercial |
|
|
Data collection |
10 |
|
Physical data entry |
20 |
|
Data entry review |
30 |
|
Valuation |
20 |
PERSONNEL NEEDS
COUNTY ACKNOWLEDGMENT: the County acknowledges that the following analysis has been determined and set the personnel required for the successful implementation of this Plan and the staff determined to be necessary will be employed at the designated times.
BUDGETING FOR IN-HOUSE REAPPRAISAL
The following pages, entitled "In House Reappraisal - Budget", should provide a detailed accounting of anticipated costs for an in-house reappraisal program. Historically, most counties have not maintained appraisal personnel necessary for systematic real estate revaluation programs. As a result the expense of performing ten years of appraisal work in the next three years may be alarming to many county officials.
Readers of the Plan should be aware that the reappraisal expenses shown on the following pages are typically in addition to the assessors normal budget.
Care should be taken to not underestimate salaries necessary to retain qualified personnel. A county would be ill advised to anticipate hiring someone for an appraisal position, sending that person to appraisal classes, and expect to then keep a trained real estate appraiser on staff unless the county is willing to pay a competitive salary.
The following pertinent codes may be found in the most current "Arkansas Property Tax Equalization and Appeal System - A Synopsis".
|
§26-26-304. |
Ratio of assessed value to market value - Effect on state aid or turnback funds. |
|
§26-27-301. |
Creation. |
|
§26-27-302. |
Qualifications. |
|
§26-27-303. |
Composition. |
|
§26-27-304. |
Selection of members. |
|
§26-27-305. |
Terms of office - Vacancies. |
|
§26-27-306. |
Oath of members. |
|
§26-27-319. |
Resolution of valuation adopted. |
|
§26-27-321. |
Abstract of tax books to be filed. |
1 Property Appraisal and Assessment Administration 1990 p. 188
