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					Arkansas Property Tax:
  Revenue, Assessments & Rates




      Conway County.




           January 2006
TABLE OF CONTENTS



  I.     Introduction

  II.    Local Use of Property Tax Revenue

         A.   School Districts

         B.   County Governments

         C.   City Governments

  III.   Property Assessments

  IV.    Property Tax Rates

  V.     Property Tax Burden

  VI.    Glossary




                                             1
I.     Introduction

Property tax revenue has long been an important source of revenue for state and local
governments. In Arkansas the property tax generates revenue for school districts, county and
city governments, community colleges and special districts. In this publication we provide
information about the source and distribution of property tax revenue to provide a better
understanding of the importance of the property tax for local governments. We also compare the
property tax base and rates among counties and over time, which provides information on the
property tax capacity and effort of local governments.




     Figure 1 – Sources and Uses of Property Tax Revenue

Figure 1 shows the sources and uses of property tax revenue with the width of the arrows
depicting the share of property tax revenue flows for the state of Arkansas. These shares will
vary among counties depending on the local tax structure, property tax base and rates.



In this publication we first show the distribution of the property tax revenue among local
governmental units and then compare the importance of the property tax revenue for Arkansas,
school districts and county governments. The next section depicts the property tax base of the
county, how it has changed over time and a comparison among counties. Third, property tax
rates are presented and compared among counties. Finally, the property tax burden is compared
among counties and states.




                                                                                                 2
II.       Local Use of Property Tax Revenue
Property taxes provide substantial revenue for local services. In 2003, Arkansas property taxes
generated $1.37 billion. Differing property assessments and local tax rates led to variation in the
amount and share of property tax revenue received by local governments and school districts.
In Arkansas, school districts receive a large share of the property tax revenue (77%) with county
and city governments receiving about 15 percent and eight percent respectively. Community
colleges and special districts also receive a small share of property tax revenue in some counties.

                 Property Tax Revenue by Taxing Unit
                           Conway County, 2003
                                                        School
                                                       Districts                      Of the $8.7 million generated from
                                                      $6,760,188
                                                         78%                          the property tax in Conway
                                                                                      County in 2003, $6.8 million
                                                                                      (78%) went to school districts,
                                                                                      $1.7 million (11%) went to county
                                                                                      government, and $0.3 million
       Cities
      $251,432
                           Counties                                                   (3%) went to city governments.
        3%
                          $1,693,994
                             19%
Figure 2 – Property Tax Revenue by Taxing Unit, Conway County, 2003
Source: Arkansas Assessment Coordination Department




                                       Property Tax Revenue as Percent of State & Local Tax Revenue, 2002
Nationwide, property taxes
                                                     30%
generate a significant share                                        40%       31%                                          42%
                                                                                                                              60% 42%

                                                35%                                       28%
of state and local tax                                      29%
                                                                                                  35%                      30%       36%
                                                                              36%
                                                                    38%                                   32%                         40%
revenue. In 2002, property                                                    33%          35%                        29%          40%
                                                                                                                                  46%
                                                      26%     24%                                     38% 35% 29%                15%
taxes accounted for 16% of                     25%                    30%
                                                                                32%
                                                                                                                    19%
                                                                                                                          30%    27%
                                                                                            26%             18%
Arkansas’ state and local tax                                                                             27%        24%
                                                            30%                     17%
                                                                     15%                    16%                     32%          14% - 21%
revenue, about half the                                                                               25% 15% 28%                21% - 28%
                                         15%                                                    16%                              28% - 35%
                                                                               42%
national average of 31%.                                                                                                         35% - 42%
                                                                                                                                 42% - 49%
                                                                                                                     35%
Only five states rely less on                                 40%                                                                49% - 61%


the property tax than                                                       Source: U.S. Census Bureau, Governments Division

Arkansas.
                                         Figure 3 - Property Tax Revenue as Percent of State & Local Tax Revenue, 2002

                                                                                                                                             3
         A.        School Districts
Property tax revenue generated approximately 28% of Arkansas school district funding in the
2003-04 school year. Of the $3.2 billion received by the 309 Arkansas school districts, nearly $900
million came from the property tax. Due to differences in tax capacity, effort, and state and
federal aid, school districts vary in their reliance on property tax revenue to support their
schools. In 2003-2004, school
                                                     Property Tax as Percent of Total School District Revenue, 2003
districts received between 11% and
                                                                        37% 28%                    20%                    26%
                                                            41%                 22% 41%                         20%
41% of their total revenue from                                      18%                           24% 21% 21%           24%
                                                            35%
                                                                           15%       16%     18%
property tax. With oversight from                                                                      29%
                                                                                                                      28%
                                                                                                                                17%
                                                            19%                        23%                   24%      18%
                                                                  26% 21%                     36%
locally elected school boards, school                                          35%
                                                                                     24%            24%            20%      18%
                                                            33%      18%                   28%               20%
districts use property tax revenue for                                   16%                                       15%
                                                                                 15%
                                                               13%
                                                                                           39% 19% 30%
many vital operating expenses,                                                                               16%
                                                                                                                   12%
                                                                     23%       38% 24%
                                                            20%
including teacher salaries, school                             25%               24% 22%         27%      30%
                                                                                                                   13%
                                                                     25%
supplies and equipment, and                                 15%
                                                                            31%
                                                                                     18%
                                                                                             20%
                                                                                                    19%                     10% - 15%
                                                                                                           26%              15% - 20%
                                                            30%      11% 20%
building construction and                                                        17% 37%            20%                     20% - 25%
                                                                                                                            25% - 30%
                                                                                             19%
maintenance.                                                      26%
                                                                           24%         28%         24%
                                                                                                           22%              30% - 35%
                                                                     20%                                                    35% - 41%

                                                       Source: 2003-2004 Arkansas Department of Education Annual Statistical Report

                                          Figure 4 – Property Tax as Percent of Total School District Revenue, 2003



               School District Revenue by Source,
                      Conway County, 2003-2004

                                In Kind      Other State Aid
   State                        $80,299        $2,043,886            Federal Aid
Equalization                      0%               9%                $2,268,164
$11,023,108
   52%                                                                  11%

                                                                                                          Property taxes generated
                                                                                                          approximately $5.3 million
                                                                                                          for schools in Conway
                                                                                                          County in 2003-2004, and
                                                                           Local Tax                      accounted for 24% of their
                                                                           $5,264,003
                                                Other Tax
                         Outside Districts
                            $129,054            $754,466
                                                                              24%                         total revenue.
                               1%                  3%

Figure 5 – School District Revenue by Source, Conway County, 2003-2004
Source: Arkansas Department of Education Annual Statistical Report

                                                                                                                                        4
       B.     County Governments
Like schools, county governments in
                                             Property Tax as Percent of County Government Revenue, 2002
Arkansas use the property tax to raise a                          27%                              12%                         23%
                                                     23%                    10% 18%                                  8%
                                                                                    13%
substantial portion of their revenue.                30%      14%                                  17%
                                                                                                          12%
                                                                                                                   19%      12%
                                                                            6%     10%       8%
                                                                                                                          25%
County governments received between                                                                      23%
                                                                                                                16%
                                                                                                                                     10%
                                                    16%               17%              12%     14%                        17%
                                                            17%
3% and 39% of their total revenue from                                       17%
                                                                                   18%              16%                  19%    3%
                                                     31%         18%                                           22%
                                                                                         23%
the property tax. Statewide, property                                 20%
                                                                                  9%
                                                                                                                          9%
                                                       7%
                                                                                         39%       20% 19%            14%
tax revenue composed 21% of total                                10%         8%    32%                          19%
                                                     8%
                                                                                                                      30%
county government revenue in 2002, but                                       21%        19%       33%        21%
                                                                 13%
                                                           10%              9%
only 17 counties were above the state               13%                            12%
                                                                                             12%
                                                                                                     9%
                                                                                                               15%
                                                                                                                                3% - 10%
                                                                                                                                10% - 15%
                                                    18%          7%    20%                                                      15% - 20%
average. The median county                                                       22%
                                                                                       12%              9%                      20% - 25%
                                                                                             13%                                25% - 40%
                                                            12%                                                23%
government relied on the property tax                            17%
                                                                        9%             19%          28%


for 16% of its total revenue.                              Source: Arkansas Bureau of Legislative Audit

                                  Figure 6 – Property Tax as Percent of Total County Government Revenue, 2002




While the property tax revenue for some county governments has been increasing, many
counties receive a smaller percentage of their revenue from the property tax than they have in
the past. This is because most Arkansas counties also use the sales tax to generate revenue, thus
reducing their reliance on the property tax.




       C.     City Governments
City governments depend less on the property tax as a source of revenue than school districts
and county governments. In the late 1980s, Arkansas cities obtained a larger share of their local
tax revenue from the property tax than they do currently. More recently cities are relying on the
sales tax to generate a larger share of local revenue for city governments.




                                                                                                                                            5
   III.       Property Assessments
   Property tax revenue is collected from commercial and industrial establishments, utilities, and
   farms as well as from owners of residential establishments. Real estate property (land and
   buildings), the largest source of property tax revenue, accounts for 68% of the property in
   Arkansas, compared to 24% from personal property, and 7.5% from utilities and carriers.




                 Total Property Assessments                            Most of the property assessments
                       Conway County, 2003
                                                                       in Conway County were
                    Utility &
                    Carrier                                            assessments on real estate. In
                  $25,351,161
 Personal
$59,317,010
                     13%                                               2003, assessments on real estate
   31%
                                                                       were $108 million as compared to
                                                                       $59 million in assessments on
                                                                       personal property. Utility and
                                                                       carrier assessments were $25
                                                                       million.
                                                         Real Estate
                                                        $107,831,199
                                                            56%


   Figure 7 – Total Property Assessments, Conway County, 2003
   Source: Arkansas Assessment Coordination Department




   Property assessments and the rate of increase in property assessments vary greatly among
   counties. On average property assessments in Arkansas increased 95% between 1990 and 2003.
   However, if these assessments are adjusted for inflation using the Consumer Price Index (CPI),
   assessments increased only 38% percent during this period.




                                                                                                          6
                                                               Total Property Assessments, Conway County
                                                                                (1990-2003)

                                     250
                                                                                                                                                                       181      186      193
                                     200                                                                                                    158      167      173
                         Million $




                                                                                            129                   129      134      139
                                     150                                                                 127
                                                              106          111
                                                  94
                                     100
                                      50
                                        0
                                              90

                                                           91

                                                                        92

                                                                                     93

                                                                                                     94

                                                                                                                  95

                                                                                                                           96

                                                                                                                                    97

                                                                                                                                            98

                                                                                                                                                     99

                                                                                                                                                              00

                                                                                                                                                                       01

                                                                                                                                                                                02

                                                                                                                                                                                         03
                                           19

                                                        19

                                                                     19

                                                                                  19

                                                                                                  19

                                                                                                               19

                                                                                                                        19

                                                                                                                                 19

                                                                                                                                         19

                                                                                                                                                  19

                                                                                                                                                           20

                                                                                                                                                                    20

                                                                                                                                                                             20

                                                                                                                                                                                      20
                                                                                                                                Current Dollars           1990 Dollars

Figure 8 – Total Property Assessments, Conway County, 1990-2003
Source: Arkansas Assessment Coordination Department & the consumer price index.



Property assessments in Conway County increased by approximately 105 percent from 1990-2003. There
was a decrease in property assessments in years 1994 and 200. After adjusting for inflation using the
Consumer Price Index, property assessments increased by 45 percent during this same period, indicating
an increasing tax base in Conway County.



           Property Assessments per Capita, 2003
                 11.2                   8.5                     7.9                                  9.4
   13.9                                                                                7.8
                                10.1
                                                  11.8
                                                                          8.0                      9.3
                                                                                                                                  Dividing assessments by population
             7.9                                               7.7                    8.5
  11.0
                             6.8           7.1
                                                        7.5
                                                                     11.9
                                                                                              11.0                                indicates the capacity of counties to raise
                                                                                                           8.5
                                              8.7                                9.7          8.0
   8.0                 8.9
          10.4
                                 13.0
                                                          12.8
                                                                                                                                  revenue from the property tax. Arkansas’
                                            9.4                  8.2                         9.2
  11.9           7.5                                                            9.7                      9.0
                       6.6
                                                   9.6
                                                                                             7.2                                  average 2003 property assessment per person
                                      6.6
     6.4
                                                               8.7 10.3
                             11.0          10.7
                                                   13.9
                                                                                 8.7
                                                                                            6.6
                                                                                                                                  was $10,717, with a range between $6,200
                 8.6                                                                        7.3
   7.6
             8.8
                                     8.8          8.8         8.9
                                                                           11.8                                                   and $18,000. Only 17 of the 75 counties were
          10.7                 9.3
  7.0                                       8.1         7.8
                                                                    6.2
                                                                                                   $6,000 - $7,000
                                                                                                                                  above the average. Rural areas are more
                                                                            11.6
  18.0       7.9                       6.8                                                         $7,000 - $8,000
                         8.4                 13.9                   8.3
                                                                                                   $8,000 - $9,000                likely to have low assessments per capita
                                                        8.0
           7.5            10.1                                                  9.3
                                                                                                   $9,000 - $10,000
                 8.6                         10.9              12.0                                $10,000 - $12,000              and, therefore, less capacity to raise revenue
                                                                                                   $12,000 - $18,000
       * numbers in map are in thousands
Source: Arkansas Assessment Coordination Department & U.S Census Bureau
                                                                                                                                  from the property tax.
Figure 9 – Property Assessments per Capita, 2003


                                                                                                                                                                                               7
Using the normalized dollar values, it                                                                             Change in Property Assessments per Capita
                                                                                                                                                         1990 to 2003
becomes clear how the real assessed value of
                                                                                                                                                                              1.4                             23.5
                                                                                                                     27.1           3.4         18.7 6.0                                         15.0
                                                                                                                                                                23.0
property has changed between 1990 and 2003.                                                                                    22.8                                         12.0
                                                                                                                                                                                    -8.6
                                                                                                                                                                                             17.0         38.8
                                                                                                                     36.3
                                                                                                                                           26.1          13.3       30.6
                                                                                                                                                                                                        28.7
The changes may be the result of rising                                                                                                                                            -8.8
                                                                                                                                                                                            6.5
                                                                                                                                                                                                                     27.6
                                                                                                                     20.2                                    -1.2                                       0.4
                                                                                                                             23.4 18.8                                 36.1
property values and/or changes in the                                                                                                           -0.5
                                                                                                                                                         35.6                 18.1                  6.9
                                                                                                                     16.0          -0.1                                                    13.7
                                                                                                                                                                37.7                                             18.9
method of assessment. A change in the                                                                                   -2.1
                                                                                                                                         -0.9
                                                                                                                                                      7.9
                                                                                                                                                                                                        2.0

                                                                                                                                                                35.9 14.8 -7.6                     -3.4
                                                                                                                                                                                           1.6
property assessments per person indicates                                                                             8.3
                                                                                                                                   9.6          7.8      54.7

                                                                                                                                                  13.2                                             -1.1
                                                                                                                                                               1.6       -3.7
whether the ability of a county to raise                                                                                           10.0
                                                                                                                                            12.6
                                                                                                                                                                                      2.2
                                                                                                                            18.2
                                                                                                                     -8.7                              -14.8                  -0.5                             -15% to -5%
                                                                                                                                                                     -0.2
property tax revenue is growing or declining.                                                                        43.2      -1.5        -1.7
                                                                                                                                                                                          23.7                 -5% to 5%
                                                                                                                                                   -10.5 -2.9                   3.7                            5% to 15%
Statewide, assessments per person have risen                                                                                 0.6
                                                                                                                                                                     -5.5
                                                                                                                                                                                          22.2
                                                                                                                                                                                                               15% to 25%
                                                                                                                                                                                                               25% to 40%
                                                                                                                                    2.3 -0.9                13.1             18.4
                                                                                                                                                                                                               40% to 55%
by $1,200 in this period, an increase of 19%.
                                                                                                                Source: Arkansas Assessment Coordination Department & U.S. Census Bureau
However, 21 counties have seen a decrease in                                                                     Figure 10 – Change in Property Assessments per Capita

per capita assessments over the same period.
                                                                                                                    Dividing assessments by total personal
Property Assessments per $1,000 Personal Income, 2003
                                                                                                                    income is another way of measuring the
                   597                                       426                             448
    502                       458     455        480                            420

                                                            407
                                                                    466                     442                     property tax base. In 2003, Arkansas
    453          423                                                        434
                             407          423     404
                                                                  535
                                                                                       449
                                                                                                   391
                                                                                                                    averaged $431 in property assessments for
    392                466                  464         555               437          389
                                                                                                                    every $1,000 of personal income, with a range
            500
                               582
                                          412                 386                     445     406
    421          382                                                      459
                                                 392
                        326
                                    301
                                                                                      386                           between $301 and $820 in the 75 counties.
      342
                                                 414        359 484               336
                                          413                             419
                 449          430
     409                                                                          369
                                    440         355     397          445
                  426
           510                433                                                                 $300 - $375
   351                                376                     365
                                                      341                                         $375 - $450
                                                                        552
    820          390     398                                                                      $450 - $525                   Change in Property Assessments per
                                    323                       381                                 $525 - $600
                                           677
                                                      391                                         $600 - $820
                                                                                                                                $1,000 Personal Income, 1990-2003
            319                                                         475
                             427           384               523                                                                            10% 10%                                -22%                            -2%
                                                                                                                             8%                     -2%                  8%                  -3%
                  449                                                                                                                                                                  -11%
                                                                                                                                                                                   6%       -6%                13%
 Source: Bureau of Economic Analysis & Arkansas Assessment Coordination Dept                                                              16%
                                                                                                                                                     -4%        -4%
                                                                                                                    26%                                                    10%                                6%
Figure 11 – Property Assessments per $1,000                                                                                                                                           -19%                               11%
Personal Income, 2003                                                                                                        -1%
                                                                                                                                     3%         3%                 -14%       11%                 -15%        -19%
                                                                                                                                                       -10%
                                                                                                                                                                11%                 -2%                  -15%        -2%
                                                                                                                             -2%          -11%
                                                                                                                                                                      16%                        -12%
                                                                                                                                                -11%                                                      -14%
Between 1990 and 2003, average property                                                                                        -18%
                                                                                                                                                            -16%
                                                                                                                                                                         8% -5% -29%      -32%
                                                                                                                                                       22%
                                                                                                                                                                                     -23%
assessments per $1,000 of personal income have                                                                               0%
                                                                                                                                          -6%
                                                                                                                                                     -2%                                   -23%
                                                                                                                                                        -1%          -18% -16%    -21%
                                                                                                                                           -7%
remained nearly constant, decreasing by only $1,                                                                            -13%
                                                                                                                                   16%                -7%
                                                                                                                                                              -24%                  -27%
                                                                                                                                                                                                                   -35% to -20%
                                                                                                                                                                           -26%
                                                                                                                                                                                             -8%
                                                                                                                                                                                                                   -20% to -10%
or 0.2%. However, individual counties have seen                                                                                           -18% -26%
                                                                                                                                                            -19% -20%                -20%
                                                                                                                                                                                                                   -10% to 0%
                                                                                                                                                                                                                   0% to 10%
                                                                                                                       37%
                                                                                                                                                                            -8%                                    10% to 20%
considerable change, ranging from a 32%                                                                                             -23%
                                                                                                                                           -17%
                                                                                                                                                   -17%            -6%              -1%
                                                                                                                                                                                             -6%                   20% to 40%


decrease to a 36% increase.                                                                                         Source: Bureau of Economic Analysis & Arkansas Assessment Coordination Dept


                                                                          Figure 12 – Change in Property Assessments per $1,000 Personal Income, 1990-2003
                                                                                                                                                                                                                               8
IV.          Property Tax Rates
Property tax rates (millage) are an indicator of the local tax effort used to support local services.
Counties, cities, and school districts have different boundaries and tax rates, which means that
citizens in the same county have different tax rates depending on whether they live in a town or
rural area and in which school district they live. To facilitate comparison among counties,
property tax rates within a county are weighted and averaged.


        Average Total Millage by County, 2003

   49                  44         43        42        37
                                                                     37
                                                                                         35             44
                                                                                                                     Statewide, the average 2003 total property tax
                                                                           36                       39
                  41                                            46                   43
   52
                             39             43         35
                                                                                                   42
                                                                                                                     millage was 47.8, or a tax rate of $47.81 for
                                                                          42                                  41
   47
             43         46                       44         36
                                                                                    41             40                every $1,000 of assessed property. School
                                  39

   51             46                        45                       42
                                                                                44
                                                                                              45         41          districts had an average millage of 36.8, while
                                                      43
                        46                                                                     41
                                       44
        44
                                                      63        44         40                 35
                                                                                                                     county governments averaged 7.2 mills and
                                            47                                      44
   38
                  41              40
                                                                                              46                     city governments averaged 6.1 mills.
                                   48             42            50             44
                   42                                                                                    $34 - $39
  39     39                   44
                                            45                       42                                  $39 - $42
                                                       46
                                                                                46                       $42 - $45
   40             40         45
                                       47                             45                                 $45 - $48
                                                 38
                                                           49                                            $48 - $64
             53                                                                 49
                   43        34              42                      46

         Source: Arkansas Assessment Coordination Dept


Figure 13 – Average Total Millage by County, 2003
                                                                                                                              Change in Average Millage, 1995 - 2003
                                                                                                                                     14%                                   0%                             8%
                                                                                                                        9%                     11%       -4%    -5%                           2%

In 1995, the average total property tax millage                                                                         7%         17%                                    6%
                                                                                                                                                                                   4%
                                                                                                                                                                                           33%
                                                                                                                                                                                                         1%
                                                                                                                                              13%        18%        -3%                             4%
                                                                                                                                                                                                                   9%
in Arkansas was 44.8. Between 1995 and 2003,                                                                                                                                    15%
                                                                                                                                                                                         5%
                                                                                                                        17%              5%                22%        -10%                          11%
                                                                                                                              2%
the average property tax millage increased by 3                                                                                                12%
                                                                                                                                                         23%               17%                     14%        6%
                                                                                                                        -8%        12%                                                  14%
                                                                                                                                                                -5%
mills, a growth of 6.7%. The average total                                                                                               2%
                                                                                                                                                    31%
                                                                                                                                                                                                    5%
                                                                                                                         57%
                                                                                                                                                                0%        10%    1%                9%
millage varied widely from -10% to 57% in                                                                                          24%         5%
                                                                                                                                                         16%                            14%

                                                                                                                        0%                                                                         6%

individual counties during this period. In five                                                                                                    14%         4%         5%         11%
                                                                                                                                    9%
                                                                                                                              0%               7%
counties the average millage decreased, while                                                                           2%                               11%
                                                                                                                                                                    27%
                                                                                                                                                                             22%                          -10% to 0%
                                                                                                                                                                                                          0% to 5%
                                                                                                                                                                                        13%
                                                                                                                        17%        23%    6%                                                              5% to 10%
in four counties the millage increased over                                                                                                         5%
                                                                                                                                                           1%
                                                                                                                                                                               13%                        10% to 15%
                                                                                                                                                                    21%                                   15% to 25%
                                                                                                                              5%     6%                                                                   25% to 60%
25%.                                                                                                                                          2%           1%              12%
                                                                                                                                                                                        15%


                                                                                                                               Source: Arkansas Assessment Coordination Dept


                                                                                                                     Figure 14 – Change in Average Millage, 1995 – 2003


                                                                                                                                                                                                                        9
V.          Property Tax Burden


Based on property tax revenue estimates*                                                                                      Property Tax Revenue per Capita, 2003
                                                                                                                                         492                                       289                             410
by the Assessment Coordination                                                                                              677                     429     353        437
                                                                                                                                                                                                      275
                                                                                                                                                                                          291                     359
                                                                                                                                      327                                         354             367
                                                                                                                            566
Department, the property taxes generated                                                                                                          267           303
                                                                                                                                                                            265                              459
                                                                                                                                                                                        497                               345
                                                                                                                                                                                                 400
an estimated $502 in revenue per person in                                                                                  373
                                                                                                                                  451       405
                                                                                                                                                     511
                                                                                                                                                                  384         464                            321

                                                                                                                                                                426                 339                     408         372
2003. Counties received property tax                                                                                        611       349
                                                                                                                                                                       411
                                                                                                                                                                                                423
                                                                                                                                              301                                                           293
                                                                                                                                                          288
revenue as high as $879 or as low as $233                                                                                     284
                                                                                                                                                                       879        389 406               233
                                                                                                                                                                502                              378
                                                                                                                                      351           434
per person. Only 16 percent of counties                                                                                     289                                                                         340
                                                                                                                                                     424              366     443          519
were above the state average, and the                                                                                       274 414
                                                                                                                                        372
                                                                                                                                                    410                                                             $230 - $300
                                                                                                                                                            364                     259                             $300 - $350
                                                                                                                                                                            356
median county averaged an estimated                                                                                                                                                             530                 $350 - $400
                                                                                                                            725       315      376                                                                  $400 - $450
                                                                                                                                                          320                        375                            $450 - $600
                                                                                                                                                                 523
$401 in property tax revenue per person.                                                                                          401
                                                                                                                                         369
                                                                                                                                                                            389
                                                                                                                                                                                                452
                                                                                                                                                                                                                    $600 - $880

                                                                                                                                                  347            460                545

                                                                                                                     Source: Arkansas Assessment Coordination Department & U.S. Census Bureau
                                                                                                                           Figure 15 – Property Tax Revenue per Capita, 2003



Property Tax Revenue as Percent of Personal Income, 2003
                                                                         1.6                              2.0
      2.5                2.6         2.0         1.9     1.8
                                                                                             1.5
                                                                                                                                        Property taxes generated revenue equal
                                                                     1.9        1.7                      1.7
      2.3          1.7                                                                      1.9
                                   1.6           1.8         1.4                                    1.9                                 to two percent of Arkansas’ personal
                                                                               2.2                               1.6
                                                                                       1.8
      1.8
                 2.2         2.1
                                     2.3
                                                   2.1             2.0                              1.6
                                                                                                                                        income in 2003. Property tax revenue as
                                                 1.9                     1.6                       2.0
      2.2              1.8
                                                         1.7
                                                                                       2.0                     1.7
                                                                                                                                        a share of personal income ranged from
                             1.5                                                                   1.6
                                           1.3
           1.5
                                                         2.6         1.6       1.9                1.2                                   1.1% to 3.4% in the 75 counties, with
                                                 1.9                                   1.8
                       1.8           1.7
      1.5
                                          2.1
                                                                                                  1.7                                   only one-fourth of Arkansas counties
                                                       1.5         2.0               2.0
                       1.8
     1.4     2.0                    1.9
                                                 1.7                     1.5
                                                                                                                                        receiving higher than two percent.
                                                             1.6                                         1.1% - 1.5%
                                                                                      2.5                1.5% - 2.0%
     3.3           1.6         1.8
                                           1.5                            1.7                            2.0% - 2.5%
                                                   2.5
                                                             1.9                                         2.5% - 3.0%
                        1.9                                                                              3.0% - 3.4%
                 1.7                                                                  2.3
                                   1.5             1.6                   2.4


 Source: Arkansas Assessment Coordination Department & U.S. Census Bureau
Figure 16 – Property Tax Revenue as Percent of Personal Income, 2003




*It should be noted that these are estimates; the Arkansas Assessment Coordination Department estimates revenue based
on rates and assessments, assuming 100% payment of property taxes.




                                                                                                                                                                                                                                  10
            Property Tax Revenue per Capita, 2002                                              When compared with other
                                                                                               states and measured on a
                                                                                               per capita basis and share of
                                                                                               personal income, the
                                                                                               property tax burden in
                                                                                               Arkansas is low. In 2002,
                                                                                               Arkansas had a property tax
                                                                         $325 - $500
                                                                         $500 - $700
                                                                         $700 - $900
                                                                                               of $371 compared to $969
                                                                         $900 - $1,100
                                                                         $1,100 - $1,500       for the United States. Only
                                                                         $1,500 - $1,900
                                                                                               Alabama had less
                               Source: U.S. Census Bureau -
                               Governments Division & Population Estimates
                                                                                               property tax per person.


Figure 17 – Property Tax Revenue per Capita, 2002




Arkansas’ 2002 property            Property Tax Revenue as Percent of $1,000 of Personal Income, 2002

tax revenue was 1.58% of
total personal income, half
the national average of
3.15%. Only two states,
Alabama and Delaware,
had lower property tax
                                                                                                                         1.0% - 2.0%
revenue as a percent of                                                                                                  2.0% - 2.5%
                                                                                                                         2.5% - 3.0%
                                                                                                                         3.0% - 3.5%
personal income.                                                                                                         3.5% - 4.0%
                                                                                                                         4.0% - 5.5%

                                                                             Source: U.S. Census Bureau - Governments Division,
                                                                             & Bureau of Economic Analysis


                                  Figure 18 – Property Tax Revenue as Percent of Personal Income, 2002




                                                                                                                                       11
GLOSSARY

ASSESSMENTS All real estate (land & buildings) and some personal property is assessed a value which is
20 percent of market value.

AVERAGE TOTAL MILLAGE The average millage in a particular geographic area. The average is
computed by weighting the millage in different political and administrative districts by the assessments in the
districts.

CONSUMER PRICE INDEX An index showing the change in the cost of a fixed basket of goods and
services over time. The index is used to measure inflation in the cost of goods and services.

FEDERAL AID         Revenue and the value of goods received from the federal government.

IN KIND      The value of in-kind goods and services received by local school districts or other entities.

LOCAL TAX Taxes of local governmental entities including counties, cities, school districts and other
special districts.

MILLAGE The tax rate on real and personal property. Millage is usually reported in rates per $1,000 of
assessed value.

PERSONAL PROPERTY TAX This is a tax on some movable property including such items as cars,
boats, motorcycles, recreational vehicles, etc.

PROPERTY TAX A tax on real estate (land & buildings) and personal property of households, businesses,
utilities and carriers.

STATE & LOCAL TAX REVENUE The sum of all tax revenue collected by state and local governments,
including the state, county, city, school and special districts.

STATE EQUALIZATION REVENUE Revenue received by school districts from the state to attempt to
equalize base funding among school districts in Arkansas.

TOTAL PERSONAL INCOME The total income received by residents of an area, including earnings,
transfer payments, and interest, dividends and rent.

UTILITY & CARRIER PROPERTY TAX                    Taxes on real and personal property of utility and carrier
companies. Carriers include businesses like pipeline, railroad, transportation, bus and airline companies.




                                                                                                                  12
                     Arkansas Is Our Campus

                                       Visit our web site at http://www.uaex.edu


                                                     Carroll                                               Fulton                                    Clay
                              Benton                               Boone     Marion                                              Randolph
                                                                                          Baxter
                                                                                                                    Sharp
                                                                                                                                                 Greene
                                              Madison                                                     Izard              Lawrence
                            Washington
                                                               Newton         Searcy            Stone
                                                                                                                                        Craighead           Mississippi
                                                                                                              Independence

                                                                                                                            Jackson
                             Crawford                 Johnson                     Van Buren                                               Poinsett
                                                                                                  Cleburne
                                         Franklin
                                                                    Pope

                                                                             Conway                         White                       Cross
                                                Logan                                                                                                Crittenden
                             Sebastian
                                                                                         Faulkner                       Woodruff
                                                           Yell                                                                        St. Francis
                                                                          Perry
                                   Scott
                                                                                          Pulaski       Lonoke Prairie                  Lee
                                                                               Saline                                       Monroe
                                                                  Garland
                                            Montgomery
                                Polk                                                                                                  Phillips

                                                                  Hot Spring                                          Arkansas
                                                                                        Grant       Jefferson
                                  Howard
                                                    Pike
                                                                  Clark
                              Sevier                                         Dallas                         Lincoln
                                                                                           Cleveland
                                                                                                                         Desha
                             Little River Hempstead Nevada
                                                                      Ouachita                                Drew
                                                                                  Calhoun
                                                                                                Bradley
                                           Miller                                                                        Chicot
                                                            Columbia                                       Ashley
                                                                                  Union
                                              Lafayette




Project Director
      Dr. Wayne P. Miller, University of Arkansas Division of Agriculture, Cooperative Extension Service
Design/Data Analysis
      Ben F. Olson, University of Wisconsin Student, Political Science Department




 University of Arkansas, United States Department of Agriculture, and County Governments Cooperating

       The Arkansas Cooperative Extension Service offers its programs to all eligible persons regardless of race, color,
       national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status,
                                            and is an Equal Opportunity Employer.

                                                                                                                                                                          13

				
DOCUMENT INFO
Description: Conway Arkansas Real Estate document sample