As Pulaski County valuation notices hit mailboxes this week, many residents are noticing large increases to their property values and some will see a 5% to 10% increase in taxes.
Joe Thompson, chief administrator for the Pulaski County assessor's office, said the county is seeing a 30.8% increase in fair market valuation growth, and individual property owners could see their market value increase higher or lower than the county average.
The county has been reassessing property on a five-year cycle, per Arkansas law. However, counties that see an increase of more than 25% in market valuation are required to revert to a three-year reassessment cycle. That means the county will complete its next assessment in 2025.
The cycle will continue every three years if the county continues to see a growth of 15% or more. Otherwise it will revert back to five-year reassessments, Thompson said.
Pulaski County follows national trends, which saw a rapid increase of real estate sales starting in 2020. The increase in sales effected market value in Pulaski County, according to a release from the assessor's office.
Of the 177,000 parcels reassessed by the county, 160,000 saw a tax increase because of the new market value, Thompson said.
"That is very unusual," Thompson said. "Generally, about half of the properties have a tax increase."
That is because state laws keep taxes the same on properties owned by someone who is disabled or older than 65 if it is their primary residence.
Thompson said he is unsure why the county saw an increase in properties with rising taxes.
Taxes are calculated off the estimated market value or appraised value of a property, according to the release. The assessed value is 20% of the market value, but the taxes someone pays may be different from the assessed value because of Amendment 79 caps and freezes, according to the release.
If the property is the main residence of the property owner, taxes can increase by only 5% annually. If it isn't the main residence, the property can increase by 10% annually.
Thompson said 75% of property taxes collected goes to school districts and cities. The taxes are also used to fund resources such as the library system, Arkansas Children's Hospital, police and fire pensions and transportation projects within the county.
While there is a cap on what property owners can pay, Thompson said there is also a cap on revenue the county can receive.
The county is not allowed to see a revenue increase of more than 10% from property tax collection, Thompson said. As of Tuesday, the county projected it would receive a 10.5% increase in revenue. If that number holds true through the appeal process, the county will have to change its tax rate so revenue stays at the 10% threshold, he said.
Representatives will be available to informally talk to residents about concerns with reassessment until July 29. A formal appeal before the Board of Equalization should be scheduled before Aug. 15.
Thompson said there are appeals during each reassessment.
"If you are in a neighborhood where 90% of the people there have remodeled their homes and you haven't, then you probably need to call us," Thompson said. "We do need to know that it is not the same as the cohort."
Thompson said mistakes happen, and if a property owner finds a mistake his office is willing to fix it.
Anyone who wants to discuss their assessment can call the Pulaski County Assessor's Office at (501) 340-6170, or visit www.pulaskicountyassessor.net to chat online with a representative.