Meanwhile, in Arkansas...
Our land is homesteaded and we are over 65. Our taxes have not gone up in four years now.
Homeowners who qualify for the homestead tax credit and who are either age 65 or older or disabled may be eligible for additional property tax relief. The taxable assessed value of currently owned homestead properties can be “frozen” at the value of the homestead at the next assessment date after the owner turns 65 or becomes disabled. If a person who is age 65 or older or who is disabled purchases a homestead property, the taxable assessed value of the residence can be frozen at the next assessment date after purchasing the homestead. Eligible homeowners must apply for the “freeze” with the county assessor’s office.
The owner of real property to whom title is transferred by sale is not entitled to claim any previous limitation on the assessed value of the real property. It other words, one homeowner’s freeze cannot pass or convey to a subsequent owner of the same home.
The assessed value on homesteads eligible for the “freeze” may increase if there is new construction or substantial improvements made to the property. Newly constructed and newly discovered property shall be assessed at full value. Substantial improvements are defined as “renovation, reconstruction and refurbishment” of a property that adds 25% or more to the value of the property.
If you have any questions about the age 65/disability assessed value freeze or believe you may be eligible to receive the freeze, please contact your county assessor’s office.
(Note: the amount of property taxes on homestead properties may still increase or decrease in the event of millage rate changes in the local taxing districts.)
Amendment 79 also provides limitations on how much the taxable assessed value of real property can increase as the result of a county-wide reappraisal. The taxable value of a homestead property can only increase 5% per year until the property reaches full assessed value. The taxable value of all other real property parcels, commercial, agricultural, and vacant can only increase 10% per year until the property reaches full assessed value. The 5% and 10% caps do not apply to newly discovered real property, new construction or substantial improvements to real property. Newly constructed and newly discovered property shall be assessed at full value. Substantial improvements are defined as “renovation, reconstruction and refurbishment” of a property that adds 25% or more to the value of the property.