The taxable value of real estate in Benton County, Arkansas, increased 16.7 percent after a countywide update by appraisers earlier this year. The increase raised both the tax bill and the ire of state Rep. Kim Hendren (R-Gravette).
A county appraisal estimates how much real estate in the county is worth. Only 20 percent of that figure is “assessed,” or liable, for calculating the owner’s property taxes bill. Other exemptions may apply. For instance, the state freezes the appraisals for taxes on homes of Arkansans older than 65.
The final value assessed for taxes is multiplied by the prevailing millage rate to calculate a property owner’s tax bill. That can be reduced further by, for instance, the “homestead” exemption of $350 for each homeowner’s primary dwelling, as reported by the Democrat Gazette in Little Rock, Ark.
After all these factors are taken into account, the “effective taxable value” of real estate in Benton County grew by 16.7 percent after a reappraisal this year.
“I know the system and how to appeal my appraisals, but how many of my constituents do?” Hendren said. “Even if they know, how many of them can afford to do all the work you have to do to prove your case in an appeal? How many can take a day off work and go make that appeal? For many of them, it’s cheaper and easier to pay the increased tax.”
Appraisers and administrators for the Benton County Assessor’s Office noted the Board of Equalization, which hears appeals of property tax assessments, had the fewest cases brought before it this year after an appraisal as it has had in years. Also, the appraisal was made in accordance with both standard practices and state law, they said.
This year’s real estate appraisal update was the county’s first in five years, the county’s appraisers and administrators said. Much of the 16.7 increase comes from added construction and improvements to buildings and homes onto the tax rolls that weren’t on the books five years ago, they said.
The 16.7 percent increase averages about 3 percent a year for five years, figures show.
“This is in a county that includes downtown Bentonville, one of the hottest real estate markets anywhere,” reappraisal manager John Williams told the paper.