Oden speaks to Lions Club
The Malvern Lions Club welcomed member R.L. Oden to speak about his role with the Arkansas State Board of Equalization at their June meeting on Tuesday afternoon at the First Baptist Church Family Life Center.
Club President, Dr. Steve Rook, opened the meeting with special recognition of the Flag Day holiday, which fell on the appointed meeting date. The Malvern Lions Club is heavily involved in patriotic flag-posting events throughout the year, including Flag Day, and they enjoy every opportunity to honor veterans and the sanctity of the American flag.
The Board of Equalization has two main responsibilities—to review the assessments performed by the County Assessor, and to review public appeals made by property owners under their jurisdiction.
Oden said he wanted to speak to the attendees because he felt that it was important for people to understand how the Equalization Board works, adding that he was unaware of all the nuances of the board’s function until he was recruited into the position and underwent the requisite training and testing. He and the other members must go through additional training every three years to stay qualified.
“The state of Arkansas created the County Equalization Boards in the late 1800s,” Oden began, “for the purpose of equalizing and assessment of property.”
The Equalization Board heard its very first appeal during a case involving the assessment of a steam-powered saw mill located within the unincorporated Hot Spring County community of Witherspoon.
“The current statutory authority for County Boards of Equalization is found in Arkansas Code 26-27-301,” Oden said. “The General Assembly also passed that, as well.”
Oden informed the group that property assessment evaluations for Hot Spring County take place every five years. The last round of assessments in Hot Spring County took place in 2021, so the next assessment will occur in 2026. He added that Aug. 15 is a key date, being the last day for HSC residents to file an appeal regarding their property assessments. Another key date is Jan. 1 of each year, which signals the beginning of a new assessment period.
Taxing authority was given to the Board by the state so they could operate for schools, county government and other civic departments like police, fire, sheriff’s office and other county employees.
Oden explained that the assessor has some power to negotiate, but if the property owner’s legal representative and the assessor’s office can’t come to some sort of agreement, there is a due process, the first step of which would be to file an appeal to the Equalization Board.
Last year, the Board heard several appeals and made a few judgements in favor of the property owners, but each case must be reviewed on an individual basis. Some factors that determine the true value of a property include location, the year of construction, improvements made on the property and other such criteria.
There are several exemptions to property tax obligations, including those for persons who are 100 percent disabled due to military service, as well as exceptions made for surviving, unmarried spouses of any veteran killed in action.
Assessment rates are determined according to the market value, which is basically defined as the price a willing buyer and willing seller would agree upon. Property owners in Arkansas will pay about 20 percent of the determined value in property, based on the millage rate of the district in question.
“A homeowner’s annual property taxes are calculated using the property’s tax assessed value and the total assigned millage rate. A home’s tax as
sessed value is a percentage of its market value,” as defined in an online report from Investopedia.
A millage is the taxation rate expressed in mills. A mill is defined as one-thousandth of one dollar, or one tenth of one cent. Millage rates will vary by city and school district. Millage fees can fluctuate
depending on where the taxed property is located and/ or where the property owner resides.
Oden shared that at one time, he was paying taxes on a property in Poyen School District while he resided in Hot Springs, saying that his tax liability in that situation was higher than some other people residing in Poyen due to the fact that the millage rate was higher for him as a Hot Springs resident than it was for Grant Co. residents.
Oden was not allowed to speak to any individual cases, but he said that once an appeal is filed, the property owner or legal representative must prepare for an in- person meeting with the Equalization Board. The county assessor and legal representative will also be in attendance.
At the meeting, the people on the Board will have a sheet of information showing the evaluation of the property in question and the basis for those decisions. It’s up to the property owner to dispute any determinations.
The County Assessor does not perform the assessments, but rather brings in an outside entity to oversee the process. The assessor may adjust the findings of the outside entity or not during the initial appeal, and if the property owner is still unsatisfied, they have the right to appeal further through the County Court, and then on up through the Circuit Court.
Residents within Malvern city limits will pay the millage rate associated with Malvern School District, which is 41.14, the city millage rate of 6.5, and the county rate of nine, totalling 56.64 mills, which is the highest rate in the county.
Oden noted that tax rates on used cars have unexpectedly increased during the last year. Taxpayers should familiarize themselves with the laws and rights afforded to them to influence the millage rates in their area, because millage rates are determined by the voters.
One little- known tax exemption Oden shared is one available to property owners who reach age 65, when the value of their property is frozen and will never rise from that set amount. Another exemption is available through the Homestead Property Tax Credit.
“Amendment 79 to the Arkansas State Constitution provides for a Homestead Property Tax Credit of up to $ 375 for qualifying properties,” according to the Benton Co. Assessor’s Office. “This credit reduces the amount of real property taxes for the qualifying property. For the property to qualify, it must be the homeowner’s primary and principal place of residence.”
More information about the appeals process and the functions of the Hot Spring County Assessor’s Office can be found online at https:// hotspringcounty. org/ county- assessor/ or by calling the local office at 501- 332- 2461.