Reappraisals were conducted countywide in Jefferson County, according to Assessor Gloria Tillman and Appraisal Manager Kelly Beaty.
Several residents received notices of change in assessment beginning earlier this month as a result of the recent completion of the reappraisal project.
"This has been an ongoing project since January 2019," said Tillman. "The purpose of a reappraisal is to ensure that property valuations, not only within Jefferson County but also among all Arkansas counties, are fair, equitable, and reflect current market values."
According to Beaty the last countywide reappraisal in Jefferson County was completed in the fall of 2018.
"The primary purpose of Act 1185 was to avoid excessive increases in property taxes due to the long periods between reappraisal cycles and to ensure that all counties were reappraising properties in a similar fashion and on a related time schedule," said Beaty.
Twelve counties in Arkansas are scheduled to complete their current reappraisal project by the end of 2023, according to Tillman.
In a document titled "Understanding the 2023 Jefferson County Reappraisal Project," Tillman said her duty as an assessor is to discover, list and record fair and equitable value on all taxable real and personal property within the county. She also explained the role of the Jefferson County Board of Equalization, a five-member board that reviews and equalizes overall county assessments and hears assessment appeals by property owners.
So what is likely to happen as a result of the reappraisal?
Beaty explained an increased real estate assessment may not necessarily mean an increase in property taxes due to the annual property tax credit of up to $425.
Besides the credit, the following limits on assessment increase after reappraisal assessments are frozen on the principal place of residence for those taxpayers 65 years and older and those who are disabled:
Assessments on the principal place of residence for other taxpayers can only increase a maximum of 5% annually until an assessment of 20% of the parcel's appraisal value has been reached.
Assessments on all other properties can only increase a maximum of 10% annually until an assessment of 20% of the parcel's appraised value has been reached.
"Some properties in Jefferson County will see an increase in their appraised value but many may possibly see a decrease," said Beaty. "The percentage of increase or decrease will not be the same for each property."
Beaty explains the increase or decrease in the real estate appraisal will be based on what property has been appraised for in the past, compared with the value that is recorded on property as a result of the current reappraisal.
According to Beaty, property taxes in Arkansas are not due and payable until October of the year following the assessments, meaning any change in the amount of the 2023 real estate taxes resulting from the current reappraisal would not be due until October of 2024.
Property owners who have experienced an increase would have received a letter as the last bunch was mailed on Monday, according to Beaty.
Beaty explained a guideline to determine if a 2023 appraised value resulting from the reappraisal is reasonable:
Decide what your property is currently worth by knowing how much other similar properties have sold for in the past couple of years.
Find out how much you paid for your property. Was the purchase true market value? How long ago did you purchase the property? How much did you spend to get it to its current condition? What would it cost to replace the house or commercial building today? And do any adverse conditions exist that may affect the value of your property?
"If you do not know the answers to these questions, local Realtors, appraisers and bankers may be helpful," said Beaty. "Also neighbors, friends and family members who have recently purchased or sold real estate could be a good source of information."
Those who received a notice are encouraged to call the appraisers at the telephone number listed on the notice if there are any concerns about the value recorded for the property.
The Board of Equalization is also available if one is still not satisfied after speaking with the appraisers. A hearing can be scheduled by calling the Jefferson County Assessor's Office at (870) 541-5344.
Beaty said the Board of Equalization cannot lower the property assessment simply because one thinks the taxes are high.
"The board can only adjust the value recorded for your property if there is a legitimate reason to do so," he said. "The members of the board will listen as you support the reasons as to why you think the appraised value of your property should be adjusted."
Information that could help, according to Beaty, is the sale of property in your neighborhood, surveys, appraisals, listing information, photographs, income and expense statements, rental information and use of the property.
The last day to schedule a hearing with the board to appeal your 2023 assessment is Aug. 21. A public meeting will be held at 2 p.m. July 25 at the Main Library at 600 S. Main St. in Pine Bluff to answer questions and address any citizens' concerns.