RULE 3.26
DESIGN OF PROPERTY RECORD
CARDS
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
Entered Date, Entered By
Revisited Date, Revisited 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
Entered Date, Entered By
Revisited Date, Revisited 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
Entered Date, Entered By
Revisited Date, Revisited By
Inspected Date refers to the date of initial on-site verification
of property characteristics as a part of reappraisal progress, except when a
method of technology is allowed by the ACD Rules and Regulations and approved
by the county and ACD as a substitute for any on-site inspection tasks. In
those cases, procedures and inspection/revisited fields must be clearly defined
in the original plan or contract or in an addendum to the original plan or
contract. If the date of office analysis is allowed as the inspection date in
conjunction with digital imagery, the imagery date must also be available.
Inspection dates should not change as a result of revisits during the same
reappraisal cycle, including return trips for further review or maintenance
work. Those dates should be recorded as revisited dates.
Inspected By refers to the appraiser who did the initial on-site
verification of property characteristics as a part of reappraisal progress, or
the appraiser who did the inspection tasks using approved technology, and it is
usually represented by initials or a code. When an appraiser in training or
otherwise unqualified in some aspect of data collection is accompanied or
followed-up by the qualified appraiser, the less qualified appraiser's initials
will appear in the Inspected By field and the qualified appraiser's initials
will appear in the Revisited By field.
Entered Date refers to the date of data entry resulting from data
collection on the reappraisal inspection date.
Entered By refers to the initials or code of the person who did
the data entry needed as a result of data collection on the reappraisal
inspection date.
Entered Date/Entered By shall not change with subsequent data
entry during the reappraisal.
Revisited Date refers to the date physical characteristics of a
property were revisited on-site or by using approved technology.
Revisited By refers to the initials or code of an appraiser who
revisited the physical characteristics of a property on-site or by using
approved technology.
Additional fields may be used to suit the particular needs of a
county, but they must not be used as substitutes for the above required
fields.
In addition to the above entry requirements on the property
record card, the changed date and changed by code or initials must be available
on the computer for all changes made to existing property information.
The deadline for implementation of the above terms and
definitions in each county is at the start of the first new reappraisal in that
county beginning on January 1, 2009 or thereafter.
Adopted 10/01/99
Amended 12/20/00
Amended 03/03/02
Amended 09/25/08
Amended 07/23/14
RULE 3.49MAXIMUM FUNDING FOR APPRAISALS
OF NEW CONSTRUCTION
Adopted 10/01/99
Repealed 07/23/14
RULE 4.04.1aPURPOSE, AUTHORITY, AND
OBJECTIVE OF RATIO STUDY RULES
1.
Purpose: The purpose of these rules is to ensure that real property in Arkansas
is appraised accurately and uniformly in accordance with constitutional and
statutory requirements, most notably A.C.A. 26-26-1902 and A.C.A.
26-26-304(e)(1).
2. Authority:
A.C.A
26-26-304 directs the Arkansas Assessment Coordination Department (ACD)
to prepare a ratio study by classification for each county and school district
in valuation years. These rules set forth the procedures ACD will follow in
conducting these studies for properties appraised on a market value standard
and the requirements of
counties and contractors in assisting ACD in effective
completion of such studies.
References to "counties" in these rules include contractors or
vendors who work for or assist counties in the revaluation and assessment
process.
3. IAAO Standards:
A.C.A 26-26-304(a)(3) directs ACD to use generally accepted valuation
procedures and techniques found in the International Association of Assessing
Officers' (IAAO) standards on ratio studies. As a general matter, both the
assessors and ACD should follow IAAO standards in preparing sales for the ratio
study and in conducting such studies. These rules are intended to provide
specific guidance and requirements for conducting ratio studies in Arkansas
consistent with IAAO standards. However, where there may be differences or
discrepancies between these rules and IAAO standards, these rules shall
control.
4. Property type: Property
values must be uniform among and within major property types. The ACD's ratio
study of real properties appraised on a market value standard shall utilize the
following three major types or classes of property (1) residential properties
including multi-family properties with four units or less, (2) vacant land
regardless of zoning or probable use, and (3) commercial and industrial
properties including multi-family properties with five or more units.
5. Market areas: Property values must be
uniform across and within major geographic divisions of a county. Each county
shall define major geographic areas, termed "market areas". Each market area
shall contain between 1,000 and 20,000 parcels, depending on value patterns and
the economic diversity of the county. Market areas can be viewed as groups of
neighborhoods in the same geographic area or areas that share similar economic
characteristics and price ranges. Smaller or economically homogeneous counties
may have a single market area.
6.
Technology: The ratio study shall be performed efficiently using modern data
processing technology. Counties must submit data to the Department in
electronic format in standard formats provided by the Department.
RULE 4.04.1b
RATIO
STUDY REQUIRED DATES
1. January 31: By
January 31 of each year all
counties shall submit to ACD an electronic file of
all
real property appraised (this file will be referred to as the ACD Extract
report). This file shall include all deeds for the
prior three calendar years.
The file shall include the following items for each deed:
*Parcel number
*Property type code - the primary use code of the property.
*Market area code.
* Neighborhood code - actual neighborhood used in location
analysis.
* The current land, building, and total appraised values of the
property before consideration of value caps, partial exemptions, etc.
* The previous land, building, and total appraised values of the
property before consideration of value caps, partial exemptions, etc.
*The sale date, sale price (with any adjustments to the price
noted in the Sales/Ratio comments), sale type (vacant or improved), deed type,
deed book, deed page, grantor, grantee, and sales validation code.
*Sales/Ratio related comments - comments for sales validation
and/or adjustments to sales price (i.e. personal property, financing,
etc.).
*Tax/School District.
* Subdivision name or Section, Township, and Range for unplatted
parcels.
* The land size and primary unit of measurement (lot, acres,
square feet, etc.)
* Location Factor.
* The occupancy type code, total living area, construction grade,
grade adjustment factor, year built (if available), effective age, and
remaining economic life of the primary building in the case of residential
properties.
* The occupancy type code, gross building area, Marshall &
Swift construction class code (A, B, C, D, or S), building quality code,
quality adjustment factor, year built (if available), effective age, and
remaining economic life of the primary building in the case of commercial and
industrial properties.
*The current total appraised value for any newly discovered
property.
*Homestead credit code.
*The current total taxable assessed value of the property.
*Total number of property record cards associated with
parcel.
The file shall contain one row per deed and must be in a format
that is directly compatible with Excel. The template and exact order of items
for this file will be determined by ACD so that report is standardized
regardless of CAMA provider.
In addition to the above mentioned files each county must submit
in electronic format the following codes with descriptions : Deed types,
Property types, and Sales Validation codes.
2. March 1: By March 1 ACD shall prepare a
preliminary ratio study for each revaluation county that sets forth the level
and uniformity of assessments in the county based on existing assessed values.
Sales used in the study will not be adjusted for time.
3. April 1: By April 1 ACD will determine
appropriate time adjustment factors for each county for each of the three major
property classifications described in 4.04.1a.(4) based on sales submitted by
the county and provide the results to the county.
4. June 1: By June 1 counties must notify the
ACD of any disagreements with its time adjustment factors and submit any
requested changes or modifications to the adjustments. (See also 4.04.1d.1 and
4.04.1d.2)
5. July 1: By July 1
counties conducting revaluations shall submit to ACD an electronic file of all
real property appraised (this file will be referred to as the ACD Extract
report). This file shall include all deeds for the
prior three calendar years.
The file shall include the following items for each deed:
*Parcel number
*Property type code - the primary use code of the
property.
*Market area code.
*Neighborhood code - actual neighborhood used in location
analysis.
*The current land, building, and total appraised values of the
property before consideration of value caps, partial exemptions, etc.
*The previous land, building, and total appraised values of the
property before consideration of value caps, partial exemptions, etc.
*The sale date, sale price (with any adjustments to the price
noted in the Sales/Ratio comments), sale type (vacant or improved), deed type,
deed book, deed page, grantor, grantee, and sales validation code.
*Sales/Ratio related comments - comments for sales validation
and/or adjustments to sales price (i.e. personal property, financing,
etc.).
*Tax/School District.
*Subdivision name or Section, Township, and Range for unplatted
parcels.
*The land size and primary unit of measurement (lot, acres,
square feet, etc.).
*Location Factor.
*The occupancy type code, total living area, construction grade,
grade adjustment factor, year built (if available), effective age, and
remaining economic life of the primary building in the case of residential
properties.
*The occupancy type code, gross building area, Marshall &
Swift construction class code (A, B, C, D, or S), building quality code,
quality adjustment factor, year built (if available), effective age, and
remaining economic life of the primary building in the case of commercial and
industrial properties.
*The current total appraised value for any newly discovered
property.
*Homestead credit code.
*The current total taxable assessed value of the property.
*Total number of property record cards associated with
parcel.
The file shall contain one row per deed and must be in a format
that is directly compatible with Excel. The template and exact order of items
for this file will be determined by ACD so that report is standardized
regardless of CAMA provider.
In addition to the above mentioned files each county must submit
in electronic format the following codes with descriptions : Deed types,
Property types, and Sales Validation codes.
6. September 15: By September 15 ACD shall
prepare a final ratio study for each evaluation county setting forth the level
and uniformity of assessments in the county for the revaluation year.
Adopted as corrected 10/14/2008
Amended by emergency procedure 06/12/09
Amended by permanent procedure 04/26/10
Amended by emergency procedure 01/31/2014
Amended by permanent procedure 07/23/2014
RULE 4.04.1c
SALES
USED IN RATIO STUDIES
1. Sales time
frame: In counties with at least 50,000 real property parcels, the ratio study
will use
oneyear of sales for vacant and residential
properties and
twoyears of sales for commercial and industrial
properties. For all other counties the study will use
two
years of sales for vacant and residential properties and
three
years of sales for commercial and industrial properties.
2. Audit of county submissions: The ACD will
compare county sales submissions against records maintained by county recorders
to ensure that all warranty deeds have been timely submitted.
3a. Sales validation codes:
Counties shall
assign
one of the following validation codes to each sale to be included on all
sales submitted to ACD.
|
00
|
UV
|
Unverified 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 (Ex. Family transaction,
employer/employee transaction, inter-company transaction)
|
|
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
|
Sales that
fail
to constitute an economic unit of multiple properties (includes
bulk sales of properties to a developer or builder)
|
|
16
|
PP
|
Sale involving personal property of significant but
undeterminable value (see discussion in 4.04.1d.3)
|
|
17
|
OF
|
Sale involving non-market financing or other non-real
estate considerations of significant but undeterminable value (see discussion
in 4.04.1d.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
|
3b.
Information codes considered valid sales:
|
25 VA
|
Primary parcel of a group of parcels that have
sold
|
|
26 AP
|
Additional parcels that are linked to the primary
parcel
|
4. Audit
of county validation codes: The ACD will audit a random sample of sales
submitted by each revaluation county to ensure that validation codes have been
correctly assigned, including residential sales, commercial sales, and vacant
sales if available. The ACD shall share its audit findings with the county and
the county shall have an opportunity to dispute its findings. If the ACD
determines that more than 10% of sampled vacant, residential, or commercial
sales are incorrectly coded, it shall not use validation codes submitted by the
county for that property class, but rather shall use electronic edits, select
and validate a random sample of sales, or take other measures deemed
appropriate to ensure a valid study.
5. Sales valid for study: The ACD shall use
sales coded as 01 (VS), 00 (UV), 25 (VA) and 26 (AP) in its ratio studies. If
there is a disagreement between a county and the ACD as to the proper
validation code for a sale, the ACD shall use the code it considers most
appropriate. The 01 (VS), 00 (UV), 25 (VA) and 26 (AP) sales shall be subject
to electronic edits (see 3.11).
6.
Multiple sales of the same property: If more than one valid sale occurs for a
property during the time frame of the study, all sales considered valid shall
be used in the study.
7. Multiple
parcel sales: Sales of multiple parcels that constitute a single economic unit
should be included in the study by summing the assessments and comparing the
total assessed value with the sale price. Such sales should be screened in the
same manner as individual parcel sales to determine whether they are legitimate
representations of market value.
8.
New construction sales: To help ensure that vacant land sales are not compared
with assessments that reflect recent improvements and to prevent the study from
being disproportionately influenced by new construction, sales involving new
construction (e.g., as indicated by the year built) shall not be used in the
ratio study.
9. Low-value
properties: The lowest 10% of residential assessed values and the lowest 10% of
commercial/industrial assessed values shall be excluded from the study. The
lowest 10% of vacant land assessed values or all vacant land assessed values
less than or equal to $400 ($2000 full value), whichever is higher, shall be
excluded from the study. These properties will be removed prior to conducting
electronic edits.
10. High-value
commercial properties: Any property that constitutes more than 5% of the total
assessed value of commercial and industrial properties in a county will be
excluded from the study. These properties will be removed prior to electronic
edits.
11. Electronic edits: The
ACD may conduct statistical-based edits to filter properties with atypical
features, sales prices, or assessment-to-sale ratios from the study. Not more
than approximately 5% of sales shall be filtered from the study based on ratio
alone.
12. Appraisals: In order to
achieve adequate sample size and representativeness for commercial and
industrial properties, the ACD may appraise a random sample of such properties.
All
three approaches to value shall be considered. The approach emphasized in a
particular appraisal shall be appropriate for the type of
property in question.
The assessor and appraisal contractor shall be afforded an opportunity to
review the appraisals and to submit information supporting different value
conclusions. Conflicts will be resolved by an independent third party review if
different value conclusions will materially affect the outcome of the study.
The appraisal will serve as surrogate commercial/industrial sales in the study.
The ACD will not conduct appraisals of vacant or residential properties.
Adopted as corrected 10/14/2008
Amended by emergency procedure 06/12/09
Amended by permanent procedure 04/26/10
Amended 07/23/2014
RULE 4.04.1d
ADJUSTMENT OF SALES FOR
RATIO STUDIES
1. Time adjustments: All
sales used in the ratio study shall be adjusted for time as necessary to
January 1 of the assessment year. The ACD shall conduct time analysis studies
using the techniques set forth in the IAAO
Standard on Ratio Studies
and the IAAO textbook,
Mass Appraisal of Real
Property. Counties may submit documented time adjustments to ACD,
which ACD may rely on if it finds that the adjustments are based on sound
methodology and adequately reflect the market. The ACD shall have authority to
determine final time adjustments used in its ratio studies.
2. Time adjustment categories: The ACD will
conduct time adjustment analyses for residential properties, vacant properties,
and commercial/industrial properties. For purposes of these analyses, it may
combine properties of the same type in counties that are similar in terms of
their economic base and geographic location.
3. Personal property adjustments: If a sale
includes personal property of significant value and the value of the personal
property can be determined with reasonable accuracy, the value of the personal
property shall be subtracted from the sale price and the adjusted price used in
the study. If the value of the personal property appears to be 5% or more of
the sale price but its value cannot be determined with reasonable accuracy, or
if the value appears to exceed 25% of the price, the sale shall be
excluded.
4. Other adjustments:
Counties may also make adjustments to sales prices for cash equivalency,
assumed leases, and other non-real estate considerations that significantly
affect the price paid for a property. The basis for these adjustments must be
documented and available for inspection by ACD. As a general principle, sales
that require difficult or subjective adjustments should be excluded from the
study (assign validation code 17 or 'OF').
RULE 4.04.1e
COMPLIANCE WITH RATIO
STUDIES STANDARDS REQUIRED
1. Level of
compliance:
Counties conducting a revaluation must comply with ratio study
standards for
real property appraised on a market value basis both on an
overall basis and for each of the following
three major
property type strata:
(1) residential,
(2) vacant land, and
(3) commercial and industrial. In addition,
ratio study standards must be achieved for residential properties and vacant
land within each market area.
2. Overall level of assessment: The overall
level of assessment must be from .18 to .22. The overall level of assessment
shall be computed as a weighted average of the median ratio determined for each
of the three major classes: residential, vacant, and commercial/industrial. The
weight assigned to each major class shall be proportionate to the estimated
market value of the class. Any property that constitutes more than 5% of the
assessed value of its class shall be omitted for purposes of the
calculation.
3. Level of assessment
of class: The level of assessment for each major class (residential, vacant,
and commercial/industrial) must be from 18% to 22%. ACD shall conclude that a
county has failed this requirement if statistical analysis reveals with 95%
confidence that the true median assessment level is below 18% or above 22% (or
equivalently that a 90% confidence interval for the median falls entirely below
18% or entirely above 22%).
4.
Level of assessment of market area: The level of assessment for residential
properties and vacant land within each market area of a county must be from 18%
to 22%. ACD shall conclude that a county has failed this requirement if
statistical analysis reveals with 95% confidence that the true median
assessment level is below 18% or above 22% (or equivalently that a 90%
confidence interval for the median falls entirely below 18% or entirely above
22%).
5. Uniformity of assessment:
The coefficient of dispersion (COD) must meet the standards shown below. The
ACD shall conclude that these standards are not met when a statistical analysis
reveals with 95% confidence that the true COD is greater than the required COD.
The
procedure outlined in Robert J. Gloudemans, "Confidence Intervals for the
COD: Limitations and Solutions",
Assessment Journal(IAAO,
November/December 2001) will be used for this purpose.
*Residential property: The COD must be 15.0 or less in market
areas located in counties with 50,000 or more parcels and 20.0 or less in
market areas located in counties with less than 50,000 parcels.
*Vacant land: The COD must be 20.0 or less in market areas
located in counties with 50,000 or more parcels and 25.0 or less in market
areas located in counties with less than 50,000 parcels..
*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.
6. Failure to comply: If a county
fails to meet the level or uniformity standards set forth in 2 through 5 above,
the ACD shall promptly notify the county assessor, the appraisal manager, the
Board of Equalization, and the county judge of the out of compliance status and
withholding of funding, and shall invoke the corrective actions outlined in
A.C.A. 26-26-304(f).
7. Selective
appraisal of sold properties: The ACD shall vigilantly monitor whether counties
are appraising unsold properties in the same manner as sold properties. Such
tests shall include but not be limited to a comparison of percentage changes in
value for sold and unsold properties of the same property type in the same
market area (excluding new parcels and parcels with new construction). The ACD
may also employ other tests of selective appraisal outlined in IAAO ratio study
standards and the IAAO textbook,
Mass Appraisal of Real
Property. If the ACD determines that a county is not appraising unsold
properties in a property type, market area, or other property stratum in the
same manner as sold properties, the ACD shall deem that the county has failed
that portion of the ratio study and its responsibility to appraise properties
uniformly at market value. ACD shall invoke the corrective actions outlined in
A.C.A. 26-26-304(f).
RULE
4.04.1fAPPEAL OF RESULTS OF RATIO STUDY FINDINGS
1. Appeals to ACD Director: A.C.A.
26-26-304(g) provides that a county that is aggrieved at the findings of the
ratio study may appeal the results to the Director of ACD and have the right to
examine ACD's records.
2. Openness:
The ACD shall provide the results of its statistical analyses to counties and,
upon request, shall provide the underlying data and statistical algorithms used
in its calculations.
3. Further
appeal: At their option, counties may pursue other avenues of appeal of the
findings of the Department as provided by the laws and courts of the State of
Arkansas.
RULE 4.04.1g
OTHER COMPONENTS OF RATIO STUDY
A.
AGRICULTURAL LAND
CLASSIFICATION
1.METHOD OF
CONDUCTING 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").
a. DEFINITION OF TERMS: Terms used in
connection with the ratio study on market value real property shall be as
defined in 'SORS" and "PAAA"
b. The
ratio study on agriculture land shall be based on a physical examination of the
records of each assessor's office to determine the degree of compliance with
the criteria established in the Assessment Coordination Department Agricultural
Land Values Publication.
2.
METHOD OF DETERMINING AGRICULTURAL
LAND SAMPLES
The Field Auditor will select 100 random samples. Sales are not
used. The appropriate number of random samples shall be divided in accordance
with the proportion of agricultural parcels per school district. Any
prospective sample to be excluded shall be recorded and validity of the
exclusion must be documented.
3.
SELECTION OF SAMPLES
Agricultural samples will normally be worked between January
1st and April 19th of the
valuation year, but they may be worked earlier or later depending on when the
county or contractor has completed soil coding. By rule 50% of soil coding must
be complete by April 19th of the valuation year.
Selected samples are used for both the ratio study and for a performance audit.
The Field Auditor will determine during the valuation audit if the proper
schedule of agricultural values established by the ACD has been adopted.
4.
PROCEDURE
In July of each year the ACD will perform a ratio study to
determine whether the county has followed guidelines for the valuation of
agricultural land in compliance with Arkansas code 26-26-407. The following is
the procedure used by ACD it determining each county's Agricultural Land
ratio:
a. Publications by the
Assessment Coordination Department containing the Agricultural Land Value
Tables for the Southwest, Delta, Ozark and Ouachita regions of Arkansas shall
be used to determine land values for agricultural land. The tables represent
the Land Capability Classification System, as designated by the U.S. Department
of Agriculture's Natural Resource and Conservation Service (NRCS). There are
threecategories of agricultural land consisting of Crop,
Pasture, and Timber, each with a value representing the productivity of the
eighteen soil classes, if applicable (represented by an
ACD
NUMBER). This is in compliance with Arkansas code 26-26-407.
b. For each sample, a ratio is computed using
the county's assessed value and the total parcel value calculated by the ACD
Field Auditor.
c. To determine the
county assessment ratio on agricultural land of the samples being used, totals
are calculated of the county's assessments and of the total land values as
determined by the ACD Field Auditors. The total assessment is then divided by
the ACD total land values, and that total is multiplied times 100 to establish
the percent ratio for the county.
d. Field Auditors will discuss their findings
regarding irregularities in agricultural land with the Assessor prior to August
1.
B.
BUSINESS PERSONAL CLASSIFICATION
1.
EXAMINATION OF RECORDS
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
Standard on Valuation of Personal Property published by the International
Association of Assessing Officers (IAA).
When the fieldwork commences for the current year, instructions
as to the number of business personal commercial samples shall be
provided.
2.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.
3.
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.
4.
PROCEDURE
a. When the Commercial Personal Property
Sample Form has been completed on all of the businesses selected for use in the
study, the Field Auditor shall go to the business site, compute the square
footage, and grade the inventory and the furniture and fixtures as to density
and quality.
b. In August the Field
Auditor shall return to each county, after the county has completed its
personal property assessments for the current year, and complete the Commercial
Personal Property Takeoff Form.
5.
RATIO COMPUTATION
a. If the county has been provided a good
rendition by the business which included a fixed assets' listing and applied
the ACD's suggested depreciation schedule to those assets, the County shall
automatically receive a twenty percent on those fixed assets and the inventory;
if not, the proper assessment shall be computed by the square foot method
described in the manual.
b. A
comparison of the actual assessed value and the value computed by the Field
Auditor produces the ratio.
c. The
ratios for all of the businesses are then ranked and the median ratio is
determined by county, by school district and by cities in that county. This
results in the Current Year Commercial Personal Property Median
Ratio.
C.
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
Standard on Valuation of Personal Property published by the International
Association of Assessing Officers (IAAO).
1.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.
2.
SELECTION OF SAMPLES
The Field Auditor shall be instructed to get random 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.
3.
PROCEDURE
In August the Field Auditor shall return to each county, after
the county has completed its personal property assessments for the current
year, and complete the Personal Property Takeoff Form.
4.
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.
5.
FORMULAS UTILIZED AND TESTS
CONDUCTED
a.
Median
(See
Standard on Ratio Studies,approved July 1999,
International Association of Assessing Officers or current edition)
b.
Coefficient of Dispersion
(See
Standard on Ratio Studies,1999, International
Association of Assessing Officers or current edition)
c. Not required, but also computed:
i.
Mean(See
Standard
on Ratio Studies,approved July 1999, Association of Assessing Officers
or corresponding provisions contained in any superseding edition of
same)
ii.
Average Absolute
Deviation(See
Property Appraisal and Assessment
Administration, published by the International Association of
Assessing Officers, 1990 edition or current edition)
iii.
Coefficient of
Concentration:
a) Of the samples that
are used, the percentage of observations which are within plus or minus ten
percent of the legal ratio of twenty percent.
b) Of the samples that are used, the
percentage of observations which are within plus or minus ten percent of the
median ratio.
iv.
Weighted Mean(See
Standard on Ratio Studies,
approved July 1999, International Association of Assessing Officers or
current edition)
v.
Standard Deviation(See
Property Appraisal and
Assessment
Administration,published by the International
Association of Assessing Officers, 1990 edition or current edition)
vi.
Price-Related
Differential(See
Standard on Ratio Studies,approved
July
1999, International Association of Assessing Officers)
vii.
Coefficient of
Variation(See
Standard on Ratio Studies,approved July
1999, International Association of Assessing Officers or current edition - to
select sample sizes)
6.DEFINITION OF TERMS
Terms used in connection with the ratio study on market value
real property shall be as defined in 'SORS" and "PAAA".
Adopted 10/01/99
Amended 12/20/00
Amended 07/05/04
Amended 12/20/06
Amended 04/26/10
Amended 07/23/14
RULE 5.02
UNIFORM
REPORTING OF DELINQUENT TAXES
If not included in the above Abstract of Assessments as defined
in Rule 5.01, the following items
relating to real property assessments shall be added:
Previous year delinquent real estate assessments
If included in the above Abstract of Assessments as defined in
Rule 5.01, the following items
relating to real property assessments shall be deleted:
Delinquent assessment certified to the State of Arkansas Office
of Commissioner of State Lands (two year delinquent).
Adopted and implemented 6/16/06 by emergency
procedure
Amended 12/20/06
Amended 07/23/14
RULE 5.03
UNIFORM REPORTING OF COUNTY
TAX SETTLEMENTS
Adopted and implemented 6/16/06 by emergency procedure
Amended 12/20/06
Repealed 07/23/14
RULE 5.04
RESPONSIBILITIES OF THOSE
PROVIDING INFORMATION
The County Assessor, County Collector of Taxes, the County Clerk,
the County Treasurer, and any other county official having possession of the
information specified in Rules
5.01 and
5.02 shall turn such information
over to the Preparer of the Tax Book at least 14 days prior to the deadlines
specified in Rule
5.01. The county official
providing the information shall be solely responsible for its accuracy. The
Preparer of the Tax Book shall be responsible only for the accuracy of
information generated solely by him or her and not that which was compiled from
the information provided by others.
Adopted 12/20/06
Amended 07/23/14
APPENDIX
ASSESSMENT COORDINATION DEPARTMENT VALUATION GUIDES AND
FORMS
VALUATION GUIDES
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
ARKANSAS AGRICULTURAL LAND, PASTURE LAND AND TIMBER LAND
GUIDELINE PUBLICATION Act 153 of 1955 as Amended
Adopted 10/01/99
FORMS
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-7a.
|
ASSESSOR'S ABSTRACT (A.C.A. 26-26-304)
|
|
A-7b.
|
ASSESSOR'S FINAL ABSTRACT (A.C.A. 26-28-303)
|
|
A-8.
|
SUMMARY REPORT OF COUNTY ASSESSMENTS
|
|
A-9.
|
IN-HOUSE COUNTYWIDE REAPPRAISAL PLAN
|
|
A-10
|
CONTRACTED COUNTYWIDE 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 DESIGNATION PROGRAM
|
Adopted 10/01/99
Amended 12/20/00
Amended 12/20/06
Amended 07/23/14
