CHAPTER
THREE IMPLEMENTATION OF ACT 1185 OF 1999
RULE
3.1
APPRAISAL MANAGER EXAMINATION
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.
RULE 3.2
PREREQUISITES FOR
APPRAISAL MANAGER EXAM
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.
RULE 3.3DATE OF APPRAISAL MANAGER
EXAM
The first exam will be offered by a date no later than September
1,1999.
RULE 3.4
ADMINISTRATION OF APPRAISAL MANAGER EXAM
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.
RULE 3.5
SUBMISSION OF REAPPRAISAL PLANS
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.
RULE 3.6
DUE
DATE FOR REAPPRAISAL PLANS
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.
RULE 3.7
REAPPRAISAL PLANS FOR 2,3, 4, OR 5 YEARS
In the case of counties that fail an assessment ratio in 1999,
the required reappraisal plan will describe a reappraisal which 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.
RULE
3.8EXCEPTIONS TO RULE 3.7
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 3.7 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.
RULE 3.9
FORMAT FOR
REAPPRAISAL PLANS
The ACD will provide a complete format for the reappraisal plan,
and the plan will be required to be completed on this specific form.
RULE 3.10
PARCEL COUNT
INFORMATION
Reappraisal plans shall contain detailed parcel count
information, listing how many real estate parcels are contained in the county,
and how many parcels are contained within each township. The reappraisal plan
will contain a numerical summary breakdown in the following format:
PARCEL BREAKDOWN RURAL:
Agricultural Vacant
Agricultural Improved
Non-Agricultural Vacant Residential
Non-Agricultural Improved Residential
Non-Agricultural Vacant Commercial/Industrial
Non-Agricultural Improved Commercial/Industrial
RURBAN:
Vacant Residential
Improved Residential
Vacant Commercial/Industrial
Improved Commercial/Industrial
CITY:
Vacant Residential Improved Residential
Vacant Commercial/Industrial
Improved Commercial/Industrial
EXEMPT:
Rural
City
Rurban
RULE
3.11
ORDER OF REAPPRAISAL PROGRESS
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 (data
collection) of the reappraisal.
RULE
3.12REAPPRAISAL MANAGER TO BE NAMED IN REAPPRAISAL
PLAN
Each reappraisal plan will name a specific person as manager of
the reappraisal.
RULE 3.13
EXISTING RESOURCES
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.
RULE 3.14
REAPPRAISAL BUDGETS
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.
RULE 3.15MINIMUM EXPECTED
PRODUCTION LEVELS FOR IN HOUSE REAPPRAISALS
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.
RULE 3.15.1
FULL REAPPRAISAL PROGRAM USING SINGLE
APPRAISERS
|
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
|
RULE
3.15.2
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
|
|
Physical data collection
|
10
|
|
Physical data entry
|
20
|
|
Data entry review
|
30
|
|
Valuation
|
20
|
RULE
3.15.3
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
|
|
Physical data collection
|
10
|
|
Physical data entry
|
20
|
|
Data entry review
|
30
|
|
Valuation
|
20
|
RULE
3.15.4
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
|
|
Physical data collection
|
10
|
|
Physical data entry
|
20
|
|
Data entry review
|
30
|
|
Valuation
|
20
|
RULE
3.16
ALLOWABLE EXPENSES
All expenses associated with the cost of maintaining current real
estate appraisals on county assessment records deemed appropriate
3 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.
RULE
3.17
FUNDING
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.
RULE
3.18IN HOUSE REAPPRAISAL PLANS - SIGNATURE
REQUIREMENTS
In-house reappraisal plans must be signed by the county assessor,
county judge, appraisal manager, and approved by a quorum court appropriation
ordinance.
RULE 3.19
CONTRACTED REAPPRAISAL PLANS - SIGNATURE REQUIREMENTS
Contracted reappraisal plans must be signed by the county
assessor, chairman of the Board of Equalization, county judge, an agent of the
reappraisal company performing the reappraisal, appraisal manager, and approved
by a quorum court appropriation ordinance.
RULE 3.20PROGRESS REPORTS FROM
APPRAISAL MANAGER TO ACD
The appraisal manager will send to the ACD, by the twenty-fifth
day of each month, a signed progress report, detailing reappraisal progress
made for that 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.
RULE 3.21
REIMBURSEMENT TO COUNTIES IN EQUAL PAYMENTS
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.
RULE 3.22
DIRECT DEPOSITS
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 reimbursement process
begins.
RULE 3.23
REVENUE SHORTFALLS
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 prorata per parcel basis to
prevent deficit spending.
RULE
3.24
ACD TO CONDUCT PERFORMANCE AUDITS
The ACD will periodically enter each county during phase one of
the county's reappraisal to conduct a performance audit (hereinafter designated
as a PA) of the collection and entry of physical data into the county's CAMA
system. The purpose of these audits will be to ensure the data collection phase
of a reappraisal progresses in a systematic fashion.
The ACD will also audit the reappraisal periodically during phase
two of the county's reappraisal. The purpose of these audits will be to
evaluate progress and accuracy of valuation procedures.
RULE 3.25
SCOPE OF PHASE ONE PERFORMANCE
AUDITS
The PA will measure both the quantity and quality of the
following:
Collection and entry of sales information, field data, and
general appraisal information.
The PA will compare total number of deeds recorded with the
circuit clerk to the total number of deeds entered into the CAMA system, and
will review quantitative data from a random sample of deeds.
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, and coded as
"WD" for warranty deeds, and 'SD" for special warranty deeds. Those deed
entries must include sale date, book and page, revenue stamps, 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 without
revenue stamps.
Interior inspections of residences are not required and
inaccuracies involving those items will not be regarded as errors for the
purposes of the audit
RULE
3.26
DESIGN OF PROPERTY RECORD CARDS
The basic design of property record cards by each class must be
approved by ACD. All fields in the following categories must have the following
entries;
City and Rurban 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 is recommended but not required. However, a breakdown
of value per lot should be included)
Review Record (where applicable)
Number of Cards and Card Number (where applicable)
All Applicable Data Collection and Valuation Fields
Data Gathered Date, Data Gatherer's Initials
Appraisal Date, Appraisers Initials
Data Changed By and Date of Change (where applicable)
Rural Cards:
Parcel Number
Ownership Record and Description
(Include Property Address when available)
Sales History
Appraisal Summary
Assessment Summary
Production Capability Pricing (When Applicable)
Review Record (where applicable)
Land Record and Computation of Land Value
Land Size
Review Record (where applicable)
Number of Cards and Card Number (where applicable)
All Applicable Data Collection and Valuation Fields
Data Gathered Date, Data Gatherer's Initials
Appraisal Date, Appraisers Initials
Data Changed By and Date of Change (where applicable)
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 (where applicable)
Number of Cards and Card Number (where applicable)
All Applicable Data Collection and Valuation Fields
Data Gathered Date, Data Gatherer's Initials
Appraisal Date, Appraisers Initials
Data Changed By and Date of Change (where applicable)
Property Description
Structural Elements
RULE
3.27
SCOPE OF PHASE TWO PERFORMANCE AUDITS
The PA will determine if generally accepted valuation methods and
techniques are being correctly employed.
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 and coefficient of dispersion calculations
will be utilized to audit final values.
RULE 3.28.1
NEIGHBORHOOD DELINEATION FOR
RESIDENTIAL NEIGHBORHOODS
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 data base 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.
RULE 3.28.2
NEIGHBORHOOD
DELINEATION FOR COMMERCIAL NEIGHBORHOODS
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 data base and rental data base 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.
RULE 3.28.3
NEIGHBORHOOD DELINEATION FOR
RURAL AREAS
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 data base 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 listthe 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.
RULE 3.29RESERVED FOR FUTURE USE
RULE 3.30
MINIMUM ACCEPTABLE
STANDARDS FOR PERFORMANCE AUDITS
All deeds which necessitate a change of name or legal
description, that are more than 20 days past their filing date must have been
entered into the county's CAMA system. A finding that the county is more than
20 working days behind in deed entry will result in a report the reappraisal is
out of compliance with progress established by the county's reappraisal
plan.
Physical data gathered on land and improvements, data entry and
valuation must be within 10% of the completion level provided by the county's
reappraisal plan. A finding that the county is more than 10% behind in
collection of physical data, data entry, or valuation will result in a report
the reappraisal is out of compliance with progress established by the county's
reappraisal plan.
During phase one of the county's reappraisal the ACD field crew
will select a random sample of parcels from work completed by each data
gatherer or appraiser, and audit sales information entered, general data
entered, field data gathered, and field data entered. During phase two,
valuation fields will be audited. The total errors and/or omissions shall not
exceed 5% of the total entries. Total errors shall not exceed 5% in any
category. If total errors and/or omissions exceeds 5% of the total entries, or
5% of a single category, the reappraisal shall be considered out of compliance
with standards.
Failure to list a dwelling or other major improvement or
placement of that improvement on 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.
RULE 3.31FAILURE TO COMPLY
WITH STANDARDS OF PERFORMANCE AUDIT
Whenever a field audit, using the standards established elsewhere
in these rules, performed by the ACD indicates a reappraisal is out of
compliance with those standards, that finding will be reported by certified
mail to the reappraisal manager, and funding for the reappraisal project will
be immediately suspended. The aforementioned letter will be copied to the
county assessor, board of equalization, county judge, quorum court, and agent
of the appraisal company when applicable.
The appraisal manager will notify the ACD when necessary
corrections have been made, at a point no later than 30 calendar days after the
date of the original certified letter from the ACD. If the appraisal manager
fails to take proper corrective action and make notification to the ACD, the
reappraisal plan will be terminated immediately, and funding will be
terminated.
RULE 3.32
FALSE REPORTS OF PROGRESS
Upon a finding that progress has been falsely reported on a
required progress report, funding already disbursed to the county as a result
of misrepresentation will be reimbursed to the state.
RULE 3.33
FORCE MAJEURE
The foregoing provisions notwithstanding, the ACD may grant
additional time in the event of delay caused by an act of God or force
majeure.
RULE 3.34
CAMA SYSTEMS REQUIRED
Each county must have a CAMA system before being eligible for
funding.
RULE 3.35
COMPUTER DATA PROPERTY OF COUNTY
All data entered into a county's CAMA system immediately becomes
the property of that county.
RULE
3.36
REQUIRED REPORTS
All data stored in a county's CAMA system, 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:
(1) parcel counts,
(2) production reports,
(3) sales reports, and
(4) additional reports developed for
audit-related purposes.
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.
RULE 3.37
DOWNLOADING CAMA DATA
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 county. 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.
RULE
3.38
BID SPECS FOR CONTRACTED REAPPRAISALS
Ail contracted reappraisals will utilize standardized bid specs
and reappraisal contracts developed by the ACD. Any variations from these
standardized contracts must be pre-approved by the ACD.
RULE 3.39
BIDS REQUIRED FOR CONTRACTED
REAPPRAISALS
Each county that contracts reappraisal services will be required
to advertise for bids for the planned reappraisal. In the event that the county
chooses to employ an appraisal firm other than the firm which 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.
RULE 3.40PAYMENT IN KIND
SERVICES
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.
RULE 3.41
REAPPRAISAL PLANS
REQUIRED
Every county must submit a reappraisal plan by a date specified
by the ACD. With the consent of the county assessor, a contractor may submit an
amended appraisal plan for approval by the ACD.
RULE 3.42
REAPPRAISAL BUDGETS
REQUIRED
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.
RULE 3.43
REAPPRAISAL
CONTRACTS REQUIRED
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.
RULE 3.44
REJECTION OF REAPPRAISAL
PLANS
Should any part of a reappraisal plan fail to meet generally
accepted standards, the ACD shall reject the plan.
RULE 3.45CONFLICTS WITH ACTS 440 AND
836 OF 1997
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 in 1999 must complete a countywide reappraisal by
2001. Funding will be available for those counties, but may not exceed the cost
to reappraise, or a maximum of seven dollars per parcel, per year.
RULE 3.46
SPECIAL
NEEDS
Each county will be allowed to submit a request for 'special
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.
RULE 3.47
MINIMUM QUALIFICATIONS FOR APPRAISAL TASKS
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.
RULE 3.47.1
MINIMUM QUALIFICATIONS FOR
APPRAISAL MANAGER
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.
RULE 3.47.2
MINIMUM QUALIFICATIONS FOR OTHER APPRAISAL TASKS
Abstracting - ACD 1,2,3,4
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
RULE 3.48MAXIMUM
ANNUAL FUNDING FOR REAPPRAISALS/ REVIEWS
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.
RULE 3.49MAXIMUM FUNDING FOR APPRAISALS
OF NEW CONSTRUCTION
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.
RULE 3.50
ASSESSORS DUTIES OTHER THAN REAPPRAISAL COSTS NOT ELIGIBLE FOR
FUNDING
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.
RULE 3.51
DEFINITIONS RELATING TO CHAPTER 3 RULES
Agricultural lands - Lands used for the production of timber,
agricultural crops, or pasture.
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 who is a full time employee of
that county.
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 or township or
section lines, or an improvement only. 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.
RULE 3.52
WAIVER
In order to effect the successful implementation of Act 1185 of
1999, upon good cause being shown, the Director of the Department may waive or
suspend any provision of the rules.
CHAPTER FOUR IMPLEMENTATION OF SPECIFIC
STATUTES
RULE 4.1PROCEDURES GENERALLY -
EXTENSION OF LEVY DATE
STATUTORY AUTHORITY: A.C.A. 14-14-904 (Acts.
1997,
No. 1300 Section 24)
1. All requests for an extension of time
within which to levy taxes shall be addressed to the Director of the
Department, dated and signed by both the County Judge and the County
Clerk;
2. All requests must state
the levy date which the county officials seek to extend and the reason for the
request resulting from reappraisal or rollback of taxes.
RULE 4.2GENERAL AUTHORITY TO PROMULGATE
RULES AND REGULATIONS &
PRESCRIBE FORMS
STATUTORY AUTHORITY: A.C.A. 25-15-203, 26-24-107, 26-26-308 and
26-26-409
RULE 4.3
EXTENSION OF TIME
STATUTORY AUTHORITY: A.C.A. 26-24-108 (
Acts 1927, No.
129 Section 12; Pope's Dig., Section 2038)
1. All requests for an extension of time
shall be addressed to the Director and shall clearly describe the report which
is the subject of the extension along with the time sought and the reason for
the request.
2. All requests shall
be signed by the person making the request and include that person's
title.
RULE
4.4RATIO OF ASSESSED VALUE TO MARKET VALUE - EFFECT ON STATE
AID OR TURN-BACK FUNDS
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))
RULE 4.4.1
1.RATIO STUDY PERFORMANCE
STANDARDS
A)
PURPOSES:
The ratio study performed annually by the Assessment Coordination
Department has four purposes:
1. The
determination of the average ratio of assessed value to the true and full
market or actual value of real property, excluding agricultural lands, by
classifications, in each of the counties and school districts of
Arkansas;
2. The determination of
the actual assessment level of real estate, including the value of agricultural
lands that qualify for a use/productivity valuation, by classification such as
residential, commercial/ industrial, agricultural, etc.
3. The determination of the average ratio of
assessed value to the true and full market-or actual value of personal property
in each of the counties and school districts of Arkansas;
4. The determination of the weighted
coefficient of dispersion about the median ratio for market value real
estate.
B)
STATUTORY REQUIREMENT:
The ratio study shall comply with (Ark. Code Ann. 26-26-304 Repl.
1997).
C)BURDEN OF
PROOF:
The burden of proof is on the Assessment Coordination Department
to show by the preponderance of the evidence that:
1. The county assessor has not placed the
real and personal property in the county on the tax record at twenty percent
(20%) of the true and full market or actual value for the assessment year or
has not placed the agricultural real property in the county on the tax record
at twenty percent (20%) of the use/ productivity valuation for the
assessment year.
2. That
the August first ratio for classifications of market value real estate,
business personal property or personal property (auto and other) are below
eighteen percent (18%) or above twenty-two percent (22%) of full market value
for the second consecutive August one ratio study.
D)OVERALL COUNTY RATIO:
To obtain the overall ratio, the County's prior year Equalization
Board Abstract shall be used to determine the total assessed value in each
classification of property. The classification total assessed; -value is then
divided by the classification ratio as determined by ACD to determine the
Estimated Market Value for each class. The Estimated Market Value for the
classifications are summed and then divided into the Total Assessed Value for
all classes which results in the overall county ratio.
E)NOTIFICATION OF FAILURE:
Each Assessor will be personally notified if the county has
failed its ratio prior to the time that the news is made public unless the
Assessor is not available for notification.
F)RATIO STUDY APPEAL PROCEDURE:
Any informal appeal of a county's August 1 ratio study for any
year shall be filed with the Director of the ACD on or before August 15 of that
year.
An informal appeal of the results of a county's August 1 ratio
should be written so as to fully and completely advise the Assessment
Coordination Department in what respects the Department has failed to produce a
ratio that meets its burden of proof and should set forth in plain language the
alleged facts and any proof of such failure. Each allegation should be set
forth in a separate numbered paragraph. If the appeal alleges as its basis
forrelief that certain samples were erroneously included, each sample should be
described in a separate paragraph.
Upon receipt of an informal appeal, the appropriate Ratio Study
Coordinator shall either accept or reject the separate allegations by paragraph
number providing to the appellant an explanation as to the reason for the
rejection within two weeks. The Ratio Study Coordinator shall respond to any
other allegations of the appellant and, if appropriate, re-compute an Amended
August 1 Ratio for the county.
Should a county wish to further appeal its August 1 Ratio Study
or the Amended August 1 Ratio Study, the County should notify the Director of
the Assessment Coordination Department within two weeks of the date of the
determination by the Ratio Study Coordinator that it is thereby filing a Formal
Appeal stating therein the Paragraphs of the Informal Appeal which it continues
to pursue and whether the Assessor requests a personal hearing before the
Director. If a personal hearing is requested, the Assessor should notify the
Director prior to the hearing as to the identities of the people who will be
present and participating in the hearing. The Ratio Study Coordinator shall be
present at all hearings to defend the Ratio Study results.
In the event, a personal hearing is not requested before the
Director, the Director shall make the determination within two weeks of the
Formal Appeal based on the original allegations of the appellant and the
response of the Ratio Study Coordinator.
2.COMPONENTS OF EACH COUNTY
RATIO
A)
REAL PROPERTY
COMPONENT:
The classifications are:
(1) market value real estate which is further
divided into urban residential, rural residential, rurban and commercial
industrial and
(2) agricultural
land which is valued by it's use/productivity.
MARKET VALUE REAL ESTATE CLASSIFICATION
1. This component of the ratio study shall be
based on sales/assessment ratios, supplemented with appraisal/assessment
ratios, as required, to meet generally accepted statistical
techniques.
2.
A. This component of the ratio study may
include sales data for the
three previous calendar years.
Act 1079. p2.2 (April 5,1999).
" In those instances when the number of appropriate sales from
the calendar year previous to the assessment year is insufficient to present a
statistically sound sample, the sales/assessment ratio study may include sales
data for the three (3) calender years previous to the assessment
year."
B. In a
county that did not fail their last ratio study, Field Auditors shall use
updated appraisal values for a neighborhood(s) in the assessment ratio study
(a) only if there is ample evidence that all other neighborhood(s) which were
undervalued have been properly adjusted and (b) only if there is also evidence
that the remaining neighborhoods that were not revalued were properly
appraised.
3. 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 most current edition thereof,
hereafter referred to as 'SORS") The standard incorporates selected chapters
and appendices of the
Property Appraisal and Assessment Administration,
published by the International Association of Assessing Officers
(hereafter referred to as'TAAA").
METHOD OF DETERMINING REAL ESTATE SAMPLES
To determine the number of market value real property samples, to
be selected from the county and the location from which the samples are to be
obtained, the total parcel count shall be computed every two years. Each school
district shall be further broken down into rural, city, rurban and the number
of samples actually obtained shall be computed by use of the formula and
procedure described in section 8.3 Required Sample Size (See
Standard
on Ratio Studies,approved July 1990, International Association of
Assessing Officers and Appendix 20-3 'Sample Size"
Property Appraisal
and Assessment Administration,published by the International
Association of Assessing Officers, 1990 edition with enough samples to assure
that at the ninety-five percent confidence interval they are plus or minus ten
percent accurate.
1. During the year
preceding the assessment year, the Field Auditor, shall be provided with the
requirements for the selection of samples for use in the Sales/Appraisal Sample
Size for the county which lists each school district within the county and the
number of rural, city rurban and agricultural (use) samples to be selected from
each school districts. The samples selected shall be compared with the actual
assessment of the particular parcel the following year. Any value changes made
to a sample by the assessor after the sample was initially selected must be
thoroughly investigated by the Field Auditors to determine whether the change
was appropriate. The Field Auditor must document the assessor's explanation and
the auditor's determination as to the appropriateness of the change and file
the documentation with the Ratio Study Coordinator.
2. Prior to December first of each year, the
county shall notify the Assessment Coordination Department if it has completed
a reappraisal and placed those values'on its records. If the notification is
made and received in a timely manner, the Assessment Coordination Department
shall prior to the publication of the February first ratio study update its
samples to reflect the new values.
3. The number of commercial real estate
samples to be obtained is roughly ten percent on the total number of real
property samples selected.
4.
Appraisals are to be utilized only when sales are not available.
5. Samples may be selected by use of the Deed
Book kept by the Circuit Clerk & Recorder for the county, a deed register
kept by the county assessor, or a computer generated list of the entire sales
in the county. In the event the Auditor uses the Assessor's register or a
computer generated list, the Auditor must first determine that the Assessor's
records are complete and up to date by comparing the Assessor's records with a
random selection of deeds taken from the Circuit Clerk's records or, if there
be a computer program to determine the accuracy of the Assessor's records, that
may be used. This process shall be documented by the Field Auditor.
6. Property sales transactions are considered
to occur in a random manner. Samples shall be selected at random. The Field
Auditors shall document the entire process by taking the record being used and
logging a starting point and an ending point. The Field Auditor shall go
through the record recording the deed book, page and deed number of each deed.
If a sale is excluded, the reason shall be noted:
(i) The Field Auditor shall select no more
than five samples per subdivision, regardless of the number of phases in that
subdivision.
(ii) The Field Auditor
shall have a maximum often unimproved lot samples in the overall
sample.
(iii) Multiple parcel sales
and splits are to be selected only if the field auditor is experiencing
difficulty in locating the required number of samples.
(iv) Samples which reflect a newly
constructed building(s) on a previously unimproved lot may be excluded. These
samples shall remain in the data base for review by the Ratio Study Coordinator
to determine if new construction is being properly added to the assessment
rolls. If it is determined that new construction is not being properly added to
the assessment rolls, then the Ratio Study Coordinator, after consultation with
the Director, may reintroduce some or all of these samples without notification
to the County Assessor.
(v) The
following sales shall be excluded: sales of doubtful title; "right of way"
sales, road district, drainage district, sewer district sales; those involving
courts, federal, state or local governmental agencies, sheriff's sales, public
utilities; those involving charitable, religious or educational institutions;
those in which a financial institution is the buyer or seller and the lien
holder, those involving administrators, executors, guardians, receivers or
trustees and estates; those between related individuals or corporations; those
in which the phrase "love and affection" are part of the consideration; those
involving an "undivided interest" or "life estate"; those involving multiple
parcels; those of only mineral interests or timber rights and those which
contain a land use (agricultural) valuation.
At the time of the pulling of the samples, sales are screened
which are patently invalid on the face of the deed, as outlined in Acquisition
and Analysis of Sales Data, Sections
6.1 through section
6.42 of the
Standard on
Ratio Studies,approved July 1990, International Association of
Assessing Officers.
VERIFICATION, EDITING AND ADJUSTMENTS TO REAL ESTATE
SAMPLES
1. Following the
selection of the sample, sales are further verified and edited based on
Acquisition and Analysis of Sales Data: section
6.1 through section
6.4.2 of the
Standard on
Ratio Studies,approved July 1990, International Association of
Assessing Officers or corresponding provisions contained in any superceding
edition of same.
2. With respect to
section
6.4.2 through section
6.6
Standard on Ratio
Studies,approved July 1990, International Association of Assessing
Officers, there shall be no adjustment for those circumstances described in
section
6.5.2 through section
6.6 except there is an adjustment
to the sales price when there is a stated amount of personal
property included
in the sales price, except in the event there be circumstances as described in
section
6.5.2 and section
6.5.3 discovered by the Auditor
or brought to the attention of the Assessment Coordination Department, then
those samples shall not be used. This provision shall be applicable to the
corresponding sections of any superceding editions of said standards of ratio
studies.
3. The ultimate decision
as to whether a sample should be included shall be made by the Ratio Study
Coordinator; while recognizing that the statistical validity of the ratio study
is of prime importance.
MISCELLANEOUS
1. On receipt of the February first
Preliminary Ratio Study, The Assessor shall promptly determine whether any of
the samples proposed for inclusion in the study are objectionable.
2. All objections shall be made in writing
and filed with the Ratio Study Coordinator by the Assessor on or before May 31.
Each sample to which there is an objection must be identified and a full
explanation provided as to why the sample should not be included. For example:
if there is an objection that the sample parcel is adjoining one owned by the
purchaser, documentation must be provided. If the requested exclusion is based
on information provided by another person, identify that person and obtain a
signed statement from that person. The statement must contain the person's
address, telephone number and the source of the information.
3. All objections shall be considered and, if
warranted, further investigation shall be conducted to determine if the
objection is valid. Failure to fully document the request may be grounds to
refuse the objection; however, it is the overriding goal of the Ratio Study
Coordination to delete all improper samples. Failure to make the objection in a
timely manner, absent some compelling circumstance which prevented the Assessor
from discovering the problem with the sample, shall automatically result inthe
rejection of an Assessor's request for deletion of a sample. No deletions shall
be made after July 31..
4. The
Ratio Study Coordinator may determine that a questioned sale sample should be
included in the ratio study. A copy of the Assessors edit request report shall
be returned to the assessor with notations as to which sales were included, and
why they were included, or excluded from the sample and those which need
additional investigation by the field auditor. Field auditors shall review the
edit report with the Assessor and recommend changes to the Ratio Study
Coordinator if any changes are warranted in the judgement of the
auditor.
5. Field Auditors shall
discuss their findings regarding objections with the Assessor
prior to August
first, if the Ratio Study Coordinator for Market Value Real Estate has not done
so.
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 Section 14, "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.
C) Agriculture samples
are pulled in the year preceding the ratio study. Sales are not used.
METHOD OF DETERMINING AGRICULTURAL LAND
SAMPLES
1. 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:
1. 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 four categories of agricultural land consisting of Crop, Rice,
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.
2. For each sample, a ratio is computed using
the county's assessed value and the total parcel value calculated by the ACD
Field Auditor.
3. 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 multiplies times 100 to establish
the percent ratio for the county.
4. Field Auditors will discuss their findings
regarding irregularities in agricultural land with the Assessor prior to August
1.
B)PERSONAL PROPERTY COMPONENT:
The classifications are:
(1) Business Personal
(2) Personal-Auto/other
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 field work 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
1. 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, grade the inventory and the furniture and fixtures as to density and
quality.
2. In July 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.
RATIO COMPUTATION
1. 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.
2. A
comparison of the actual assessed value and the value computed by the Field
Auditor produces the ratio.
3. 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.
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.
3.FORMULA
UTILIZED AND TESTS CONDUCTED
1.
Coefficient of variation(See section
7.5.2
Standard on Ratio
Studies,approved July 1990, International Association of Assessing
Officers or current edition - to select sample sizes)
2.
WeightedMean(See section
73.3
Standard on Ratio
Studies,approvedJuly 1990, International Association of Assessing
Officers or current edition)
3.
Weighted Coefficient of Dispersion about the Median(CODw)
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4.
Median(See section
73.1 Standard
on Ratio
Studies, approved July 1990, International Association of Assessing
Officers or current edition)
5. Not
required, but also computed:
a)
Mean
(See section
7.3.2
Standard on Ratio
Studies, approved July 1990, Association of Assessing Officers or
corresponding provisions contained in any superceding edition of
same)
b)
Average absolute
deviation (Chapter 20, Page 532-534,
Property Appraisal and
Assessment Administration,published by the International Association
of Assessing Officers, 1990 edition or current edition)
c)
Coefficient of
Concentration:
1. Of the samples that
are used, the percentage of observations which are within plus or minus ten
percent of the legal ratio of 20 percent.
2. Of the samples that are used, the
percentage of observations which are within plus or minus ten percent of the
median ratio.
d)
Coefficient of dispersion(See section
7.5. 1 Standard
on Ratio
Studies,1990, International Association of Assessing Officers or
current edition)
e)
Standard deviation(Chapter 20, Page 535,536,
Property
Appraisal and Assessment Administration,published by the International
Association of Assessing Officers, 1990 edition or current edition)
f)
Price- related
differential(See section
7.7
Standard on Ratio
Studies, approved July 1990, International Association of Assessing
Officers)
4. DEFINITION OF TERMS
Terms used in connection with the ratio study on market value
real property shall be as defined in Section 14, "SORS." AND "PAAA."
RULE 4.5
GENERAL RULES FOR APPRAISAL CONTRACTORS
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:
1. Name, physical address, mailing address,
telephone number of appraisal firm;
2. Type of entity, corporation, partnership
or sole proprietorship;
3. If a
corporation, Certificate of Good Standing;
4. If a corporation, list the stockholders
and officers and provide three professional references for each;
5. If a partnership, provide three
professional references for each partner;
6. If a sole proprietorship, provide three
professional references;
7. For
each stockholder and officer, partner or sole proprietor, fully describe the
qualifications of each, including all mass appraisal experience;
8. List of all personnel employed by the
appraisal firm who will be performing mass appraisal work in Arkansas stating
whether they are full time or part time employees, the appraiser qualification
level of each, and the number of years of experience in mass
appraisal;
9. All appraisal
personnel must meet the qualification requirements established under Act 48 of
1980, and all Level Three and Level Four appraisers must meet the continuing
educations requirements of 30 hours every three years in order to maintain
their qualification levels;
10.
List of each county in Arkansas where the appraisal company has performed for
the last five years with the year or years when the work was performed, whether
the work was maintenance (new construction) or revaluation, and a reference
source on each job;
11. A copy of
all current insurance documents and bonds covering the company;
12. A statement as follows: The appraisal
company recognizes that the information contained herein shall be used by
counties in determining whether to contact with it and used by the Assessment
Coordination Department in determining whether the firm can adequately perform
under a proposed contact; therefore, the appraisal company agrees that all
information contained herein will be updated in a timely manner;
13. Any other information the ACD or the
appraisal company deems relevant;
14. All information submitted will be made
public information and is intended for use by counties who are contemplating
employing appraisal companies;.
15.
The appraisal company must demonstrate that it is financially sound and
possesses sufficient operating capital to perform the contract and its other
outstanding contractual obligations. If the appraisal company is a corporation
and it does not meet the criteria, the principals may elect to sign as
individuals and assume personal liability on the contract with the
county.
RULE 4.6
COUNTYWIDE REAPPRAISAL OF PROPERTY
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)
RULE 4.7
COMPLETION OF REAPPRAISAL - SUSPENSION OF PENALTIES
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.
1. In the year any reappraisal is being
completed, the assessor shall maintain a list of newly constructed or newly
discovered property encountered during the reappraisal.
2. To insure that all property within a
county is equitably assessed, an assessor whose county did not fail its last
ratio study, may revise property values in a particular neighborhood (s) only
if all other neighborhoods in the county have been surveyed and there is
evidence that- they are correctly appraised at full market value.
3. A Plan under Act 836 of 1997 which must be
in progress on the third Monday in November in a year must be submitted by the
first of September and approved no later than the third Monday in
November.
4. The ACD shall prepare
and distribute to the counties an "In-House Countywide Reappraisal Plan" form
No. A-9 and a "Contracted Countywide Reappraisal Plan" which contains the
minimum criteria for Plans which shall be accepted by the ACD.
5. The ACD retains the authority to reject a
Plan which may meet the minimum criteria as published, but which it determines
is not submitted in good faith.
6.
There may be additional safeguards which should be inserted into the forms. The
form is not meant be complete or exhaustive. It is the responsibility of each
county to.determine the specific language for inclusion in its final plan and
contract.
7. A county which has
contracted with a private appraisal company and subsequently learns that the
private appraisal company is not fulfilling its contractual obligations shall
promptly notify the Assessment Coordination Department and file a complaint in
writing stating the allegations giving rise to the complaint. The Assessment
Coordination Department shall then notify said private appraisal firm that a
complaint has been filed, enclosing a copy of the complaint.
8. Any member of the staff of the Assessment
Coordination Department, or a member of the public, who learns of a possible
violation of the contractual obligations of a private appraisal company and the
county, may also file a complaint with the Assessment Coordination
Department.
9. The Director of the
Assessment Coordination Department shall then set a conference date no earlier
than thirty days from the date that the private appraisal firm, the Assessor,
and the complaining party are notified by certified mail, return receipt
requested, setting a place and time for the conference and advising the
complaining party, private appraisal firm and the Assessor of their right to be
present to present the allegations and any rebuttal. Said conference shall be
open to the public and attended by members of the staff of the Assessment
Coordination Department as designated by the Director.
10. Should the Director of the Assessment
Coordination Department or his appointee determine that the private appraisal
firm has failed to abide by the appraisal standards of the International
Association of Assessing Officers and that the failure is significant and
pervasive resulting in substandard appraisals that if the private appraisal
company does not agree to immediately correct the problem at its own expense,
and do so, that the Assessment Coordination Department shall not approve any
future plans involving that private appraisal company until such time as the
defects are substantially corrected.
11. If a county fails to abide fully by the
terms of a filed Plan and the Director of the ACD has reached a preliminary
decision to terminate the Plan, the ACD shall not do so unless it has notified
the County, setting out the factors giving rise to its decision to terminate
and affording the County an opportunity to appear before the Director to show
cause why the Plan should not be terminated for good cause. The ACD shall
notify all signatories to the Plan, by certified mail, in the event of a
preliminary decision to terminate the Plan and the time and place shall be set
for a full consideration of the matter and their right to appear and
participate. On termination of a Plan, the ACD shall promptly notify the proper
fiscal officers disbursing state aid and turn-back funds that the County does
not have an approved Plan which is being implemented and ask that the full
range of penalties provided by law be applied to the County.
12. Any action or pending action by the ACD
involving allegations that an appraisal firm has failed to abide by its
contractual obligations to a county shall not in any manner preclude the filing
of an action in the appropriate court of this State by any of the parties to
the contract.
RULE 4.8
PROCEDURE FOR ADJUSTMENT OF TAXES AFTER REAPPRAISAL OR REASSESSMENT OF
PROPERTY
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)
The following definitions apply to Amendment 59 to the Arkansas
Constitution: Act
1981, No.
848.
1.
REAPPRAISAL - The estimating of value of all taxable real property within the
county as of a given date within a given time frame.
2. MASS APPRAISAL - Estimating the value of a
group of properties as of a given date, within a given time frame using
generally accepted techniques.
3.
REASSESSMENT - Process of placing reappraisal values in the official assessment
record.
4. COUNTY-WIDE REAPPRAISAL
- Mass appraisal of certain classes of properties within a county, provided
those other classes of property not reappraised have had their values reviewed
and are currently assessed at acceptable levels.
5. PREVAILING VALUE - Value of a property as
determined by the existing appraised values of other similar properties in the
county.
6. NEWLY DISCOVERED
PROPERTY - Property that has never been on the assessment roll.
7. NEW CONSTRUCTION AND IMPROVEMENTS -
Changes to property that have occurred to property already on the assessment
roll.
8. BASE YEAR - Year when
reassessed values are entered on assessment roll.
9. MARKET VALUE - Most probable sale price of
a property in terms of money in a competitive and open market, assuming that
the buyer and seller are acting prudently and knowledgeable, allowing
sufficient time for the sale, and assuming that the transaction is not affected
by undue pressures.
10. BONA FIDE
AGRICULTURAL LAND - Land that is devoted to the production of commercial
quantities of plant products to be used for human consumption, animal feed, or
as a textile.
11. BONA FIDE PASTURE
LAND - Land to benefit grazing animals, or growing forage crops with the intent
of selling or storing for future use.
12. BONA FIDE TIMBER LAND - Forest land that
is producing, or capable of producing, crops of industrial wood and is not
withdrawn from timber utilization (Appendix, pg 30, "Forest Resources
of Arkansas"Southern Forest Experiment Station, Resource Bulletin
SO-169, Feb. 1992).
RULE
4.9
COMPREHENSIVE COUNTYWIDE REAPPRAISALS -
APPLICABILITY
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)
1. When an Assessor is of the opinion that a
"comprehensive countywide reappraisal" has been completed, Form No. A-ll shall
be completed immediately, signed and notarized and submitted to the Director of
the ACD for investigation, determination and certification.
2. When any member of the county equalization
board, quorum court, taxing unit or taxpayer within the county is of the
opinion that a "comprehensive countywide reappraisal" has been completed and so
informs the ACD in writing giving those facts on which the opinion is based,
the ACD will investigate and determine whether certification is
required.
3. In determining whether
a comprehensive countywide reappraisal has occurred, the ACD shall consider
that since it provides tables for use in valuing agriculture and timber lands
that those properties have been reappraised each year. Likewise, all personal
property shall be considered to have been reappraised each year.
4. On receipt of a properly completed form,
the Director of the Assessment Coordination Department shall determine whether
the County has completed a Comprehensive Countywide Reappraisal, and if so,
shall certify the reappraisal.
5.
In determining whether a comprehensive countywide reappraisal has been
completed, the following Definition of terms shall be utilized:
a. Reappraisal - A re-estimation of values
using mass appraisal techniques.
b.
Mass appraisal - Estimating the value of a group of properties as of a given
date, within a given time frame.
c.
County-wide reappraisal - The mass appraisal of certain classes of properties
within a county, provided those other classes of property not reappraised have
had their values reviewed and are currently assessed at acceptable
levels.
RULE
4.10
CERTIFICATION OF ASSESSED VALUE DATA
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)
1. Form No. CC- 4 entitled Base Year
Certification of Assessment Data on Real Estate is adopted to comply with this
statute.
2. Form No. CC - 5
entitled School District Calculation to Determine Minimum Millage Required by
Amendment 74 is adopted to comply with this statute.
RULE 4.11
COMPUTATION AND CERTIFICATION
FORM
STATUTORY AUTHORITY: A.C.A. 26-26-404 (Act 1981, No. S4S 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.
RULE 4.12
PERSONAL PROPERTY INTERIM
MILLAGE ADJUSTMENT
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.
RULE 4.13
VALUATION GUIDELINES
STATUTORY AUTHORITY: A.C.A. 26-26-304 and 26-26-407
1. Manual entitled Assessors' Replacement
Cost Real Estate Manual is promulgated to comply with this Statute. This manual
may be used as a guide and is not mandatory.
2. Publication entitled Agricultural Land,
Pasture Land and Timber Land Guidelines is promulgated to comply with this
Statute. USE OF THIS PUBLICATION IS MANDATORY.
3. Manual entitled Personal Property
Assessment Manual is promulgated to comply with this Statute. This manual may
be used as a guide and is not mandatory.
4. Manual entitled Commercial Personal
Property Appraisal Manual is promulgated to comply with this Statute. This
manual may be used as a guide and is not mandatory.
RULE 4.14IMPLEMENTATION OF MILLAGE
ROLLBACK IN FRINGE SCHOOL DISTRICTS
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)
1. Form No. CC-3 entitled Fringe District
Rollback is adopted to comply with this Statute.
2. In a case where a fringe district is
engaged in a reappraisal the millage rates shall be rolled back, immediately
fringed and levied in both counties.
RULE 4.15
TRAINING CRITERIA FOR
APPRAISERS
STATUTORY AUTHORITY: A.C.A. 26-26-503 (Acts 1980 (1st Ex. Sess.)
No. 48, Sections One, Two;
1985, No.
392, Sections One, Two)
1. Form No. M-l entitled Application for
Admission - Arkansas Assessment Training Program.
2. Training and Certification Program as
described in Form No. M-2 entitled Training and Certification Program for
Appraisers Employed by State and County Officials is adopted.
RULE 4.16
PROPERTY USED FOR
OTHER THAN CHURCH PURPOSES
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.
RULE 4.17
ASSESSMENT OF PERSONAL PROPERTY TAXES BY MAIL OR BY
TELEPHONE
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.
RULE 4.18
VALUATION PROCEDURES
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:
1. Real property is the
physical parcel of land, and improvements attached to the land, such as
buildings.
2. Fixtures which can be
severed from the realty without substantial damage either to itself or to the
realty are personal property.
