Subtitle 1. General Provisions

Chapter 1 General Provisions

Cross References. Illegal exactions, Ark. Const., Art. 16, § 13.

Effective Dates. Acts 1883, No. 114, § 226: effective on passage.

26-1-101. Definitions.

As used in this act, unless the context otherwise requires:

  1. “Credits” means the excess of the sum of all legal claims and demands, whether for money or other valuable things, or for labor or service due or to become due, to the person liable to pay taxes thereon, including deposits in banks or with persons in or out of this state, when added together, estimating every claim or demand at its true value in money, over and above the sum of legal bona fide debts owing by the person. In making up the sum of the debts owing, there shall be taken into account no obligation to any mutual insurance company; nor any unpaid subscription to the capital stock of any joint-stock company; nor any subscription for any religious, scientific, literary, or charitable purpose; nor any acknowledgment of any indebtedness, unless founded on some consideration actually received and believed at the time of making, the acknowledgment to be a full consideration therefor; nor any acknowledgment of debt made for the purpose of diminishing the amount of credits to be listed for taxation; nor any greater amount or portion of any liability as surety than the person required to make the statement of the credits believes that the surety is in equity bound and will be compelled to pay or contribute;
  2. “Investment in bonds” means all moneys invested in bonds of whatever kind or certificates of indebtedness commonly called scrip, whether issued by incorporated or unincorporated companies, towns, cities, townships, counties, states, or other corporations, held by persons residing in this state, either by themselves or by others for them, whether for themselves or as guardians, trustees, or agents;
  3. “Investment in stocks” means all moneys invested in public stocks of this or any other state or in any association, corporation, joint-stock company, or otherwise, the stock or capital of which is or may be divided into shares, which are transferable by each owner without the consent of the other partners or stockholders, for the taxation of which no special provision is made by this title, held by persons residing in this state, either for themselves or as guardians, trustees, or agents, or by others for them;
    1. “Money” means gold and silver coin, bank notes of solvent banks in actual possession, and every deposit which the person owning, holding in trust, or having the beneficial interest therein is entitled to withdraw in money on demand, within this state or elsewhere, provided it is subject to order.
    2. All citizens of this state shall, when they give to the county assessor a list of their personal property, moneys, and credits, state under oath whether they have any deposits or balances on accounts, or otherwise, and the amount of the deposits, balance, or otherwise on account;
  4. “Oath” means an oath or affirmation;
  5. “Pensions” receivable from the United States or from any state, salaries or payments excepted, shall not mean annuities;
  6. “Person” means a firm, company, or corporation;
  7. “Personal property” means:
    1. Every tangible thing being the subject of ownership, whether animate or inanimate, other than money and not forming a part of any parcel of real property as defined; and
    2. The capital stock, undivided profits, and all other means not forming part of the capital stock of every company, whether incorporated or unincorporated, and every share, portion, or interest in the stock, profits, or means, by whatsoever name it may be designated, inclusive of every share or portion, right, or interest, either legal or equitable, in and to every ship, vessel, or boat of whatsoever name and description used or designed to be used exclusively or partially in navigating any of the waters within or bordering on this state, whether the ship, vessel, or boat shall be within the jurisdiction of this state or elsewhere and whether it shall have been enrolled, registered, or licensed at any county collector's office or within any county collector's district of this state, or not;
  8. “Real property and lands” means not only the land itself, whether laid out in town lots or otherwise, with all things therein contained, but also all buildings, structures, improvements, and other fixtures of whatever kind thereon and all rights and privileges belonging or in anywise appertaining thereto; and
  9. “Town” or “city” means all cities or towns, incorporated or not incorporated, and all blocks or lots or parts thereof, assessed for taxation as such, whether they are situated in an incorporated city or town, or not.

History. Acts 1883, No. 114, §§ 1, 75, p. 199; C. & M. Dig., §§ 9792, 9939; Pope's Dig., §§ 13358, 13723; A.S.A. 1947, §§ 84-101, 84-102.

A.C.R.C. Notes. Pursuant to Arkansas Constitution, Amendments 57 and 71, and § 26-3-302, intangible personal property and “items of household furniture and furnishings, clothing, appliances, and other personal property used within the home, if not held for sale, rental, or other commercial or professional use”, are exempt from ad valorem taxes. Additional ad valorem tax exemptions for public property, churches, cemeteries, schools, libraries, charities, and textile mills are found in Arkansas Constitution, Article 16, § 5(b), and Arkansas Constitution, Amendment 12. See also § 26-3-301 et seq.

Meaning of “this act”. Acts 1883, No. 114, codified as §§ 14-15-201, 14-15-505, 16-20-106, 16-92-113 [repealed], 16-92-114, 16-92-115 [repealed], 16-96-401, 21-6-305, 25-16-517, 26-1-101, 26-2-101, 26-2-103, 26-2-108, 26-3-201, 26-3-204, 26-3-301, 26-25-10126-25-103, 26-25-105, 26-26-70226-26-704, 26-26-714, 26-26-716, 26-26-717, 26-26-90326-26-909, 26-26-914, 26-26-1001, 26-26-1102, 26-26-1107, 26-26-120226-26-1205, 26-26-1505, 26-28-101, 26-28-10326-28-108, 26-28-110, 26-28-111, 26-34-10126-34-103, 26-34-108, 26-35-201, 26-35-301, 26-35-302 [repealed], 26-35-303, 26-35-401, 26-35-402, 26-35-503, 26-35-504, 26-35-603, 26-35-604, 26-35-901, 26-35-100126-35-1003 [repealed], 26-35-1004, 26-36-202, 26-36-204, 26-36-20626-36-209, 26-36-211, 26-37-106, 26-37-206, 26-37-208, 26-37-209, 26-37-305, 26-37-307, 26-38-106, 26-38-107, 26-39-204, 26-39-205 [repealed], 26-39-20626-39-221, 26-39-30226-39-305 [repealed], 26-39-403, 26-39-406, 26-39-50126-39-502, 26-39-50326-39-509 [repealed], 26-76-10226-76-108, 26-76-201 [repealed], and 26-76-202.

Case Notes

Person.

A domestic insurance company is a “person” required to assess its stock for taxation. Dallas County v. Banks, 87 Ark. 484, 113 S.W. 37 (1908); Dallas County v. Home Fire Ins. Co., 97 Ark. 254, 133 S.W. 1113 (1911).

Real Property.

Buildings, machinery, and fixtures situated on leased lands and belonging to the lessee are taxable as real property. Union Compress Co. v. State, 64 Ark. 136, 41 S.W. 52 (1897).

Interest in oil and gas leases in another state must be deemed an interest in real property, and not taxable in this state. Greene County v. Smith, 148 Ark. 33, 228 S.W. 738 (1921).

Arkansas courts have adopted a three-part test to determine whether an item is a fixture: (1) whether the item is annexed to the realty; (2) whether the item is appropriate and adapted to the use or purpose of that part of the realty to which the item is connected; and (3) whether the party making annexation intended to make it permanent. Rice v. Fas Fax Corp. (In re Hot Shots Burgers & Fries, Inc.), 169 B.R. 920 (Bankr. E.D. Ark. 1994).

Town or City.

Whether a community is incorporated or not is not the test as to whether it is a town or city under this section. Southeast Ark. Levee Dist. v. Turner, 184 Ark. 1147, 45 S.W.2d 512 (1932).

Cited: Ritchie Grocer Co. v. Texarkana, 182 Ark. 137, 30 S.W.2d 213 (1930); Baldwin v. Rushing, 254 Ark. 1042, 497 S.W.2d 668 (1973).

Chapter 2 Penalties and Offenses Generally

Cross References. Illegal exactions, Ark. Const., Art. 16, § 13.

Effective Dates. Acts 1869 (Adj. Sess.), No. 47, § 4: effective on passage.

Acts 1873, No. 124, § 200: effective on passage.

Acts 1879, No. 76, § 5: effective on passage.

Acts 1883, No. 114, § 226: effective on passage.

Acts 1917, No. 263, § 4: Mar. 17, 1917. Emergency declared.

Acts 1927, No. 129, § 38: Mar. 9, 1927. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1975, No. 928, § 1: effective simultaneously with the Arkansas Criminal Code on Jan. 1, 1976.

26-2-101. Violations by officials generally.

  1. A violation of any provision or failure to comply with any requirement of this act by any officer enumerated in this chapter shall be a violation and malfeasance in office.
  2. Upon conviction, the officer shall pay a fine of not more than five hundred dollars ($500) and shall be removed from office.

History. Acts 1883, No. 114, § 224, p. 199; C. & M. Dig., § 10195; Pope's Dig., § 13978; A.S.A. 1947, § 84-1601; Acts 2005, No. 1994, § 160.

Meaning of “this act”. Acts 1883, No. 114, codified as §§ 14-15-201, 14-15-505, 16-20-106, 16-92-113 [repealed], 16-92-114, 16-92-115 [repealed], 16-96-401, 21-6-305, 25-16-517, 26-1-101, 26-2-101, 26-2-103, 26-2-108, 26-3-201, 26-3-204, 26-3-301, 26-25-10126-25-103, 26-25-105, 26-26-70226-26-704, 26-26-714, 26-26-716, 26-26-717, 26-26-90326-26-909, 26-26-914, 26-26-1001, 26-26-1102, 26-26-1107, 26-26-120226-26-1205, 26-26-1505, 26-28-101, 26-28-10326-28-108, 26-28-110, 26-28-111, 26-34-10126-34-103, 26-34-108, 26-35-201, 26-35-301, 26-35-302 [repealed], 26-35-303, 26-35-401, 26-35-402, 26-35-503, 26-35-504, 26-35-603, 26-35-604, 26-35-901, 26-35-100126-35-1003 [repealed], 26-35-1004, 26-36-202, 26-36-204, 26-36-20626-36-209, 26-36-211, 26-37-106, 26-37-206, 26-37-208, 26-37-209, 26-37-305, 26-37-307, 26-38-106, 26-38-107, 26-39-204, 26-39-205 [repealed], 26-39-20626-39-221, 26-39-30226-39-305 [repealed], 26-39-403, 26-39-406, 26-39-50126-39-502, 26-39-50326-39-509 [repealed], 26-76-10226-76-108, 26-76-201 [repealed], and 26-76-202.

26-2-102. Violation of law or order of Arkansas Public Service Commission.

  1. Whoever shall violate any provisions of a law which the Arkansas Public Service Commission is required to administer, neglects or refuses to perform any duty therein required for which a penalty has not otherwise been provided, or neglects or refuses to obey any lawful requirement or order made by the commission shall forfeit to the state as a penalty for each offense not less than ten dollars ($10.00) nor more than one hundred dollars ($100). The penalty shall be recovered by proper action in the name of the state, and on collection, it shall be paid into the State Treasury to the credit of the General Revenue Fund Account.
  2. In construing and enforcing the provisions of this section, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person, firm, company, copartnership, association, or corporation acting within the scope of his or her employment shall, in every case, be the act, omission, or failure of the person, firm, company, copartnership, association, or corporation.

History. Acts 1927, No. 129, § 34; Pope's Dig., § 2060; A.S.A. 1947, § 84-1602.

Cross References. Authority of Public Service Commission, § 26-24-102.

26-2-103. Loaning or using public money by officials.

If any county treasurer, county collector, or county sheriff loans any money belonging to the state or county, with or without interest, or uses it for his or her own purposes, he or she shall forfeit and pay for every such offense a sum not to exceed one thousand dollars ($1,000) nor less than five hundred dollars ($500), to be recovered in a civil action at the suit of the state, for the use of the state, county, city, town, or body politic.

History. Acts 1883, No. 114, § 205, p. 199; C. & M. Dig., § 10167; Pope's Dig., § 13949; A.S.A. 1947, § 84-1615.

26-2-104. Violations in assessment or equalization generally.

Whoever shall violate any provision of law intended to secure the assessment or equalization of property for which a penalty has not otherwise been provided or neglects or refuses to obey any lawful requirement or order made by the county equalization board shall be guilty of a violation and upon conviction shall be fined not less than ten dollars ($10.00) nor more than one hundred dollars ($100).

History. Acts 1929, No. 172, § 34; Pope's Dig., § 13675; A.S.A. 1947, § 84-1603; Acts 2005, No. 1994, § 161.

26-2-105. County assessor failing or neglecting to make appraisals.

  1. Any county assessor who shall knowingly or willfully fail or neglect to appraise all moneys, credits, investments in bonds or stocks, and all personal property of whatever description or kind and to appraise all the real estate and improvements thereon in the county for which he or she is assessor, according to the provisions of the revenue law for this state, shall be deemed guilty of a misdemeanor. Upon conviction, he or she shall:
    1. Forfeit all his or her pay as county assessor;
    2. Be forever disqualified from holding any office of profit or trust in this state;
    3. Be fined not exceeding one thousand dollars ($1,000); and
    4. Be imprisoned in the penitentiary not to exceed one (1) year.
  2. A conviction for a failure or neglect to do his or her duty as county assessor shall in no way relieve him or her from the pains and penalties of perjury if he or she makes oath that he or she has made the assessment according to law.

History. Acts 1869 (Adj. Sess.), No. 47, §§ 1, 2, p. 101; C. & M. Dig., §§ 2817, 2818; Pope's Dig., §§ 3535, 3536; A.S.A. 1947, §§ 84-1604, 84-1605.

A.C.R.C. Notes. Pursuant to Arkansas Constitution, Amendments 57 and 71, and § 26-3-302, intangible personal property and “items of household furniture and furnishings, clothing, appliances, and other personal property used within the home, if not held for sale, rental, or other commercial or professional use”, are exempt from ad valorem taxes. Additional ad valorem tax exemptions for public property, churches, cemeteries, schools, libraries, charities, and textile mills are found in Arkansas Constitution, Article 16, § 5(b), and Arkansas Constitution, Amendment 12. See also § 26-3-301 et seq.

26-2-106. Failure to list and value property.

    1. Any county assessor or any member of a county equalization board who shall knowingly and willfully fail or refuse to list and value any item of property subject to taxation, knowing that the item of property is subject to taxation and is not listed and valued for that year, or who shall fail or refuse to value any property at the percent of its market value as certified by the Arkansas Public Service Commission shall be subject to a penalty of five hundred dollars ($500) for each offense, to be recovered by a civil action in the name of the state.
    2. Not exceeding twenty percent (20%) of these recoveries may be retained by the commission to pay the fee of the attorney for them and the other expenses of the litigation, with the remainder of the recovery to be deposited into the State Treasury to the credit of the General Revenue Fund Account.
    1. Any suits under subsection (a) of this section shall be brought within one (1) year after the cause of action shall accrue and not thereafter.
    2. All actions may be brought in the county where the defendant resides, or in any adjoining county, and service of summons had on the defendant in the county of his or her residence.
  1. The powers granted in this section to the commission shall be cumulative to the powers heretofore granted to the commission.

History. Acts 1917, No. 263, §§ 2-4, p. 1359; C. & M. Dig., §§ 9922, 9923; Pope's Dig., §§ 13690, 13691; A.S.A. 1947, §§ 84-1606, 84-1607, 84-1607n.

Cross References. Determination of ratio of valuation, § 26-26-304.

26-2-107. Disposition of property to avoid assessment.

If any person, for the purpose of avoiding listing for the payment of taxes on any property subject to taxation, shall sell, give away, or otherwise dispose of the property, under or subject to any agreement expressed or implied or any understanding with the purchaser, donee, or recipient of the property that the property is to be reconveyed, restored, or redelivered to the person so disposing of the property, he or she shall be guilty of a violation and upon conviction be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000).

History. Acts 1873, No. 124, § 137, p. 294; C. & M. Dig., § 10172; Pope's Dig., § 13954; A.S.A. 1947, § 84-1617; Acts 2005, No. 1994, § 162.

26-2-108. Nonperformance of duty by county clerk, county assessor, or county collector.

Every county clerk, county assessor, or county collector who in any case refuses or knowingly neglects to perform any duty enjoined on him or her by this title or who consents to or connives at any evasion of its provisions whereby any proceedings required in this act shall be prevented or hindered or where any property required to be listed for taxation or for the collection of taxes thereon or the valuation thereof is entered on the tax books or lists at less than the true value shall forfeit and pay to the state, for every neglect, refusal, connivance, or consent, not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), at the discretion of the circuit court, to be recovered by an action in the name of the state before the circuit court of the proper county.

History. Acts 1883, No. 114, § 206, p. 199; C. & M. Dig., § 10168; Pope's Dig., § 13950; A.S.A. 1947, § 84-1608.

Meaning of “this act”. See note to § 26-2-101.

26-2-109. County collector purchasing tax land.

  1. No county collector or his or her deputy, either directly or indirectly, shall be concerned in the purchase of any tract of land or town lot sold for the payment of taxes.
  2. A person violating this section shall be guilty of a violation and subject to a fine of five hundred dollars ($500).

History. Rev. Stat., ch. 128, § 94; C. & M. Dig., § 10170; Pope's Dig., § 13952; A.S.A. 1947, § 84-1609; Acts 2005, No. 1994, § 163.

26-2-110. Improper tax collecting.

If any county collector shall collect taxes not stated on the tax book or shall collect a greater amount than is therein stated, except as authorized by this act, he or she shall be guilty of a Class C felony.

History. Acts 1873, No. 124, § 83, p. 294; C. & M. Dig., § 10171; Pope's Dig., § 13953; Acts 1975, No. 928, § 26; A.S.A. 1947, § 84-1610.

Publisher's Notes. Acts 1975, No. 928, § 2, provided that, notwithstanding that all or part of a statute defining a criminal offense is amended or repealed by the act, the provisions so amended or repealed shall remain in force for the purpose of authorizing the prosecution, conviction, and punishment of a person committing an offense under the provisions prior to the effective date of the act.

Meaning of “this act”. Acts 1873, No. 124, codified as §§ 14-15-808 [repealed], 26-2-110, and 26-2-107.

Case Notes

Cited: Tucker v. Holt, 343 Ark. 216, 33 S.W.3d 110 (2000).

26-2-111. Fraudulent statement of accounts by collecting officer.

Any county sheriff, collector of revenues, constable, or other officer collecting moneys belonging to the State of Arkansas, or to any county therein, who fraudulently states his or her account for settlement and thereby deprives the State of Arkansas, or any county therein, of its just revenues; or any county clerk who keeps fraudulent accounts against the county collector or against the county treasurer or makes fraudulent and false additions of the tax books thereby concealing the true value of the same; or any county treasurer who keeps fraudulent accounts of the county revenues coming to his or her hands and, by any of these fraudulent acts, the State of Arkansas or any county therein is deprived of its just revenues, the officer so offending shall, upon conviction, be removed from office.

History. Acts 1879, No. 76, § 1, p. 107; C. & M. Dig., § 10197; Pope's Dig., § 13980; A.S.A. 1947, § 84-1611.

26-2-112. Removal of county judge.

Any county judge who willfully approves any false and fraudulent account made by the county sheriff, county collector, county clerk, county treasurer, or other officer collecting or holding revenues belonging to the State of Arkansas, or to any county therein, or receives a bribe for doing an unlawful act shall, upon conviction, be removed from office.

History. Acts 1879, No. 76, § 2, p. 107; C. & M. Dig., § 10198; Pope's Dig., § 13981; A.S.A. 1947, § 84-1612.

26-2-113. Prosecution by state.

Nothing contained in this section and §§ 26-2-111, 26-2-112, and 26-2-114 shall preclude the State of Arkansas from prosecuting county officers or others for the acts complained of under any of the criminal laws of this state.

History. Acts 1879, No. 76, § 4, p. 107; C. & M. Dig., § 10203; Pope's Dig., § 13986; A.S.A. 1947, § 84-1614.

26-2-114. Taxpayer suit to recover taxes lost by corruption in office.

  1. If any taxpayer in any county in this state has knowledge of corruption in office whereby the State of Arkansas, or any county therein, has been deprived of its just revenues, he or she shall have the right, in his or her own name as a taxpayer, to institute legal proceedings against the officer, by a petition to the circuit judge sitting in equity, setting forth the facts and nature of the corrupt acts, together with exhibits and proofs, and the petition shall be verified by affidavit of the petitioner.
  2. Upon ten (10) days' notice to the defendant, the cause shall proceed as other causes. It shall be heard, tried, and determined at the first court after the petition has been filed if the required notice has been given.
    1. The proceedings authorized by this section shall be summary. However, if it shall appear to the circuit court that the ends of justice require it, a continuance may be granted to either party to the next term of the circuit court, but not thereafter.
    2. The party to whom the continuance is granted shall be required to enter into additional bond, the amount to be fixed and the security to be approved by the circuit court.
    1. Upon the trial, if it shall appear that the official acts of the officer are corrupt and fraudulent and by those acts and doings he or she shall have defrauded the State of Arkansas, or any county therein, of its just revenues, then a decree shall be entered against him or her ousting him or her from his or her office and declaring it to be vacant, and for all moneys which he or she may have unlawfully detained.
    2. If, upon the hearing of the cause, it shall appear that the defendant is not guilty and has not committed the fraudulent acts complained of, and that the state and the county have not been deprived of their revenues as complained of by the petitioner, then a decree shall be entered according to the facts and, also, a decree shall be entered against the petitioner and his or her securities for any sums of money which the defendant may have actually lost by reason of the proceeding.
  3. Before any such cause shall be heard, the petitioner shall enter into bond to the defendant with security, to be approved by the circuit judge, in a sufficient sum to pay any damage that the defendant might sustain by the proceedings.

History. Acts 1879, No. 76, § 3, p. 107; C. & M. Dig., §§ 10199-10202; Pope's Dig., §§ 13982-13985; A.S.A. 1947, § 84-1613.

Case Notes

Constitutionality.

This section is unconstitutional as applied to chancery courts. Gladish v. Lovewell, 95 Ark. 618, 130 S.W. 579 (1910).

Bond.

Action of taxpayer to recover fees wrongfully paid to officer was brought under the provisions of Ark. Const., Art. 16, § 13, and not under this section, and therefore no bond was required. Baker v. Allen, 204 Ark. 818, 164 S.W.2d 1004 (1942).

Equity Jurisdiction.

Primary object of suit under this section being to oust collector from office, equity could not be given jurisdiction of such an action. Gladish v. Lovewell, 95 Ark. 618, 130 S.W. 579 (1910).

Suit against tax collector to account for taxes would not lie in equity in absence of allegation of proper officers to sue. Gladish v. Lovewell, 95 Ark. 618, 130 S.W. 579 (1910).

Although equity does not have jurisdiction of cases under this section, action of taxpayer to recover funds improperly withdrawn from county treasury was within the jurisdiction of a court of equity and should have been brought in the chancery court. Grooms v. Bartlett, 123 Ark. 255, 185 S.W. 282 (1916).

Chapter 3 Property Subject to Taxation and Exemptions

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Taxable Property

Preambles. Acts 1895, No. 10 contained a preamble which read:

“Whereas, By an act of Congress, approved August 13, 1894, all circulating notes of national banking associations and United States legal tender notes, and all other notes and certificates of the United States payable on demand and circulating, or intended to circulate, as currency, and gold and silver or other coin, shall be subject to taxation as money on hand or on deposit under the laws of any State or Territory; therefore … .”

Effective Dates. Acts 1883, No. 114, § 226: effective on passage.

Acts 1895, No. 10, § 2: effective on passage.

Acts 1905, No. 146, § 2: effective on passage.

Acts 1981 (1st Ex. Sess.), No. 29, § 3: Dec. 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that some confusion has arisen regarding the present law relating to the assessment and taxation of mobile homes; that such law should be clarified as soon as possible to assure the efficient administration of the law and that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 1040, § 7: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that many churches have engaged in the practice of investing in real and personal property, or have received donations of commercial or rental property which is not now assessed for ad valorem tax purposes and are not paying tax thereon as required by law, thereby depriving the local taxing units of thousand of dollars of much needed revenues; that under the Arkansas Constitution of 1874, Article 16, Sections 5 and 6, such property is not exempt from the provisions of the ad valorem property tax; that in many instances such churches do not report for Arkansas Income Tax purposes income derived from investments or profits derived from rental income or other commercial or business activities and do not pay taxes thereon; that this reduces the amount of revenues available for funding of State services; and that only by the immediate passage of this Act can this situation be remedied. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 869, § 5: Mar. 22, 1989. Emergency clause provided: “It is hereby found and determined that the present procedures pertaining to delinquent property taxes on mobile homes and manufactured homes are inadequate; that this act provides procedures to attach delinquent real property tax to the personal property tax of the owner of the mobile home or manufactured home; and that this act is immediately necessary to implement appropriate procedures applicable to delinquent property taxes on mobile homes and manufactured homes. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 410, § 2: Feb. 23, 2001. Emergency clause provided: “It is found and determined by the General Assembly that Amendment 79 to the Arkansas Constitution was adopted by the voters of this state at the November General Election, 2000; that the amendment requires the General Assembly to provide a tax credit against the property taxes levied against homesteads in this state; that under present law, some mobile homes and manufactured homes are taxed as real property and some are not; that all mobile homes and manufactured homes should be taxed as real property and thereby allow the owners to receive the tax credit required by Amendment 79; that this act so provides; and that this act must go into effect immediately in order to coincide with Amendment 79. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

ALR.

Sales, use, or privilege tax on sales of, or revenues from sales of advertising. 40 A.L.R.4th 1114.

Am. Jur. 71 Am. Jur. 2d, State Tax., § 118 et seq.

C.J.S. 84 C.J.S., Tax., § 76 et seq.

26-3-201. Property subject to taxes generally.

All property, whether real or personal, in this state; all moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise, of persons residing therein; the property of corporations; and the property of all banks or banking companies and of all bankers and brokers shall be subject to taxation. Such property, moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise, or the value thereof, shall be entered on the list of taxable property for that purpose.

History. Acts 1883, No. 114, § 2, p. 199; C. & M. Dig., § 9853; Pope's Dig., § 13597; A.S.A. 1947, § 84-201.

A.C.R.C. Notes. Pursuant to Arkansas Constitution, Amendments 57 and 71, and § 26-3-302, intangible personal property and “items of household furniture and furnishings, clothing, appliances, and other personal property used within the home, if not held for sale, rental, or other commercial or professional use”, are exempt from ad valorem taxes. Additional ad valorem tax exemptions for public property, churches, cemeteries, schools, libraries, charities, and textile mills are found in Arkansas Constitution, Article 16, § 5(b), and Arkansas Constitution, Amendment 12. See also § 26-3-301 et seq.

Cross References. Tax on timber and rangelands, § 26-61-101 et seq.

Taxation of corporate property, Ark. Const., Art. 16, § 7.

Case Notes

In General.

It is the rule and not the exception that property shall be taxed. Vandergrift v. Lowery, 195 Ark. 257, 111 S.W.2d 510 (1937).

The right to impose taxes upon citizens and property for the support of the state government may be restricted by the Arkansas Constitution, but needs no clause to confer it. Ouachita County v. Rumph, 43 Ark. 525 (1884).

Insolvent Banks.

Property of insolvent bank continues subject to taxation notwithstanding bank's insolvency. Brooks v. Randolph State Bank, 188 Ark. 571, 66 S.W.2d 1071 (1934).

Intangibles.

Notes, bills of exchange, stocks, and securities of all kinds are property and subject to taxation. Ouachita County v. Rumph, 43 Ark. 525 (1884).

Corporate stock is subject to tax. Dallas County v. Banks, 87 Ark. 484, 113 S.W. 37 (1908).

Personal Property.

Personal property being used in this state, though owned by a foreign company, is subject to taxation. Eoff v. Kennefick-Hammond Co., 80 Ark. 138, 96 S.W. 986 (1906).

Real Property.

A note given for land and the land itself are both subject to taxation, the note as property of the holder and the land as property of the purchaser. Ouachita County v. Rumph, 43 Ark. 525 (1884).

Land held as private property is subject to taxation, though it does not appear upon the public surveys. Buckner v. Sugg, 79 Ark. 442, 96 S.W. 184 (1906).

Where owner of 60 feet of a certain lot sold part of it to a city, retaining ownership of only 51 feet thereof, subsequent assessment on the entire 60 feet and sale for nonpayment of taxes were void. Kaplan v. Scherer, 205 Ark. 554, 169 S.W.2d 660 (1943).

Trust Arrangements.

Where, under an instrument designated as a “declaration of trust,” a trust estate was created for the purpose of acquiring oil and gas leases in a foreign state, the interest of the beneficiaries in leases so acquired was not subject to taxation in this state. Greene County v. Smith, 148 Ark. 33, 228 S.W. 738 (1921).

Cited: Omega Tube & Conduit Corp. v. Maples, 312 Ark. 489, 850 S.W.2d 317 (1993).

26-3-202. Money.

  1. All circulation notes of national banking associations, United States legal tender notes, all other notes and certificates of the United States payable on demand and circulating or intended to circulate, as currency, and gold, silver, or other coin held or owned by any citizen or resident of the State of Arkansas are made taxable for all state, county, school, and municipal purposes.
  2. Each person in the state required by law to list property shall make out and deliver to the county assessor, verified by the property owner's oath or affirmation, a list of all moneys, certificates, and circulating notes described in this section in his or her possession or under his or her control on January 1 of each year, which he or she is required to list for taxation, either as holder or owner thereof, or as guardian, parent, spouse, executor, administrator, receiver, accounting officer, partner, agent, or factor.

History. Acts 1895, No. 10, § 1, p. 15; C. & M. Dig., § 9857; Pope's Dig., § 13602; A.S.A. 1947, § 84-205.

A.C.R.C. Notes. Pursuant to Arkansas Constitution, Amendments 57 and 71, and § 26-3-302, intangible personal property and “items of household furniture and furnishings, clothing, appliances, and other personal property used within the home, if not held for sale, rental, or other commercial or professional use”, are exempt from ad valorem taxes.

26-3-203. Mobile homes and manufactured homes.

  1. Mobile homes and manufactured homes shall be deemed real property for the purpose of ad valorem property taxation.
  2. Real property taxes and any interest, penalties, or other charges on a mobile home on a leased site in a mobile home park or any other leased site, and any assessment or user fee chargeable to the owner of the mobile home and constituting a lien, shall be assessed and levied against the owner of the mobile home whose name appears on the certificate or other acceptable evidence of ownership, and shall be a lien on the mobile home or manufactured home only.
  3. When the property tax on mobile homes and manufactured homes which are now assessed as real property become delinquent, the delinquent real property tax shall be attached to the personal property tax of the owner of the mobile home or manufactured home and the county collector shall not accept payment of the personal property taxes without collecting payment of the delinquent real property taxes at that time.

History. Acts 1981, No. 113, § 1; 1981 (1st Ex. Sess.), No. 29, § 1; A.S.A. 1947, §§ 84-215, 84-215.1; Acts 1989, No. 869, § 1; 2001, No. 410, § 1.

Research References

ALR.

Classification, as real estate or personal property, of mobile homes or trailers for purposes of state or local taxation. 7 A.L.R.4th 1016.

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Tax Law, 24 U. Ark. Little Rock L. Rev. 613.

26-3-204. Federal lands sold by state.

  1. All tracts of land set apart for school or other purposes and donated to the state by the United States Congress for a specific purpose and sold under the authority of the laws of this state to any person shall be subject to taxation as other land in this state immediately after sale. These lands shall not be sold for taxes until the purchase money shall be fully paid, but shall be returned delinquent as other lands, and the personal property of the purchaser shall be subject to sale to pay the taxes thereon.
  2. Until the payment of taxes or the collection thereof from the personal property, these lands shall be continued on the tax books and the taxes of each year charged thereon and added to the tax and penalty due when they became delinquent until payment is made or the lands are resold by the proper officer or authority pursuant to the laws in force for the sale of these lands.

History. Acts 1883, No. 114, § 3, p. 199; C. & M. Dig., § 9854; Pope's Dig., § 13598; A.S.A. 1947, § 84-202.

Case Notes

Lands Purchased from United States.

Land purchased from the federal government is subject to taxes as soon as entry is made and the purchase price paid, although no patent is issued. Diver v. Friedheim, 43 Ark. 203 (1884); Smith v. Hollis, 46 Ark. 17 (1885); Burcham v. Terry, 55 Ark. 398, 18 S.W. 458 (1892).

26-3-205. Timber rights.

  1. All timber in this state which has been sold separately and apart from the land on which it stands shall be classed as personal property and shall be subject to taxation as such.
  2. Timber interests shall be assessed and the taxes collected thereon in the county where the timber is located.

History. Acts 1905, No. 146, § 1, p. 361; C. & M. Dig., § 9855; Pope's Dig., § 13599; A.S.A. 1947, § 84-204.

Cross References. Assessment of timber rights, § 26-26-1109.

Case Notes

Assessment.

Standing timber, although the ownership thereof is severed from the ownership of the soil, is part of the land and, as such, subject to assessment. Lewis v. Delinquent Lands, 182 Ark. 838, 33 S.W.2d 379 (1930).

Conveyance.

A contract to convey standing timber is a contract to convey “an interest in land” notwithstanding this section. Anderson-Tully Co. v. Gillett Lumber Co., 143 Ark. 97, 222 S.W. 362 (1920).

Where growing trees are conveyed, separating timber from the land so that the landowner and timber owner have separate estates, the growing trees become property subject to taxation apart from the land. Southern Lumber Co. v. Ark. Lumber Co., 176 Ark. 906, 4 S.W.2d 928 (1928).

Purchaser of timber from improvement districts must pay taxes when timber is assessed. Little Red River Levee Dist. v. Moore, 197 Ark. 945, 126 S.W.2d 605 (1939).

26-3-206. Property used for other than church purposes — Exemption.

  1. All real or personal property owned by any church and held for, or used for, commercial, business, rental, or investment purposes, or purposes other than church purposes, shall be listed for assessment. The ad valorem tax shall be paid thereon at the same rate and at the time and in the same manner provided by law for any other property owner.
  2. However, in the event any property is used partially for church purposes and partially for investments or other commercial or business purposes, the property shall be exempt from the ad valorem tax.

History. Acts 1987, No. 1040, § 1.

Subchapter 3 — Exemptions from Taxation

Effective Dates. Acts 1883, No. 114, § 226: effective on passage.

Acts 1929, No. 74, § 4: Mar. 2, 1929. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1953, No. 363, § 5: Mar. 28, 1953. Emergency clause provided: “This Act, being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect, from and after its passage.”

Acts 1975, No. 319, § 4: Mar. 5, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law exempts certain disabled veterans from the payment of all State taxes on the homestead and personal property owned by such disabled veteran but fails to provide a like exemption for the surviving spouse and surviving minor dependent children of such disabled veteran; that in many cases the surviving spouse and minor dependent children of a deceased disabled veteran are in even greater need of tax exemption for the homestead and personal property owned by the disabled veteran and left to such dependents than was the disabled veteran during his lifetime; that this Act is designed to extend the exemption to the surviving spouse and surviving minor dependent children of disabled veterans and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1220, § 4: Feb. 12, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 196 and Act 319 of 1975 amend the same section of law and relate to the exemption of certain disabled veterans and their surviving spouses and minor dependent children from the payment of all State taxes on the homestead and personal property owned by such disabled veteran and by the surviving spouse and surviving minor dependent children of such disabled veteran; that since the two acts amended the same existing section of law and purported to restate the section in its entirety there has been considerable confusion regarding the effectiveness of the exemptions provided in said acts; and that this Act is immediately necessary to clarify the laws regarding such disabled veterans tax exemptions to avoid misunderstanding and hardship on such veterans and their surviving spouses and minor dependent children. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 106, § 5: Feb. 8, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that Amendment No. 57 to the Arkansas Constitution, adopted by the people at the 1976 General Election authorizes the General Assembly to classify intangible personal property, to provide for the taxation of intangibles at a different level than tangible personal property, to provide for the taxation of intangibles on a basis other than ad valorem, or to exempt intangibles from ad valorem taxes; that it is in the best interests of the citizens and the political subdivisions of the State that intangibles be exempted from ad valorem taxes at least until a study can be made of the extent to which, if any, such intangibles should be taxed and the most appropriate manner for levying any such taxes; and that the assessment of real and personal property for ad valorem tax purposes commences very early in the calendar year and it is necessary that this Act be given effect immediately in order to avoid confusion in the assessment of personal property for ad valorem taxes during the calendar year 1977. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 332, § 3: Mar. 3, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that in some instances waterworks systems owned by nonprofit property owners associations are being subjected to ad valorem taxation in contravention of Article 16, Section 5 of the Arkansas Constitution of 1874, and that this legislation is necessary in order to clarify the exemption granted thereby. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 627, § 5: Apr. 4, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that County Assessors in various counties in Arkansas have assessed property belonging to public institutions of higher learning, state agencies, institutions, boards and commissions, and that county assessors are required by law to assess all real and personal property of their counties annually between the first Monday in January and the first day in August, and that an immediate need exists to clarify the status of property owned by public institutions of higher learning, State agencies, institutions, boards and commissions in order to prevent such property from being placed on the tax rolls by county assessors. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 1010, § 5: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1220 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 1040, § 7: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that many churches have engaged in the practice of investing in real and personal property, or have received donations of commercial or rental property which is not now assessed for ad valorem tax purposes and are not paying tax thereon as required by law, thereby depriving the local taxing units of thousand of dollars of much needed revenues; that under the Arkansas Constitution of 1874, Article 16, Sections 5 and 6, such property is not exempt from the provisions of the ad valorem property tax; that in many instances such churches do not report for Arkansas Income Tax purposes income derived from investments or profits derived from rental income or other commercial or business activities and do not pay taxes thereon; that this reduces the amount of revenues available for funding of State services; and that only by the immediate passage of this Act can this situation be remedied. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 961, § 6: Mar. 29, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that in certain instances real estate taxes and other assessments have either not been collected or have been difficult to collect; that the provisions of this act are designed to alleviate such problems and that only by the immediate effectiveness of this act may such problems be solved and certain tax revenues and assessments be rightfully provided local taxing authorities. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 669, § 6: Mar. 17, 1995. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that county assessors in various counties in Arkansas have assessed public property which is available for use by persons or organizations for events which are not open to the general public; and that county assessors are required by law to assess all real and personal property in their counties annually between the first Monday in January and the first day in August, and that an immediate need exists to clarify the status of public property used by persons or organizations for events which are not open to the general public in order to prevent such property from being placed on the tax rolls by county assessors. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 1544, § 6: Apr. 12, 2001. Emergency clause provided: “It is found and determined by the General Assembly that in order to efficiently reimburse the counties for the homestead property tax credit, county assessors are required to recertify to the Chief Fiscal Officer the amount of real property reduction on or before June 30 of the year 2001 and every year thereafter. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1473, § 74: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act includes technical corrects to Act 923 of 2003 which establishes the classification and compensation levels of state employees covered by the provisions of the Uniform Classification and Compensation Act; that Act 923 of 2003 will become effective on July 1, 2003; and that to avoid confusion this act must also effective on July 1, 2003. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2007, No. 411, § 2: Jan. 1, 2007.

Acts 2015, No. 573, § 3: effective for assessment years beginning on or after January 1, 2015.

Research References

ALR.

Recovery of tax paid on exempt property. 25 A.L.R.4th 186.

Exemptions: religious societies or institutions. 28 A.L.R.4th 344.

Exemption of public golf courses from local property taxes. 41 A.L.R.4th 963.

Exemption of nonprofit theater or concert hall from local property taxation. 42 A.L.R.4th 614.

What are educational institutions or schools within state property tax exemption provisions. 34 A.L.R.4th 698.

Exemption from real property taxation of residential facilities maintained by hospital for patients, staff, or others. 61 A.L.R.4th 1105.

Am. Jur. 71 Am. Jur. 2d, State Tax., § 207 et seq.

Ark. L. Rev.

Property Tax Exemptions in Arkansas, 4 Ark. L. Rev. 433.

C.J.S. 84 C.J.S., Tax., § 252 et seq.

26-3-301. Property exempt from taxes generally.

All property described in this section, to the extent limited, shall be exempt from taxation:

  1. Public school buildings and buildings used exclusively for public worship and the grounds attached to these buildings necessary for the proper occupancy, use, and enjoyment of the buildings, not leased or otherwise used with a view to profit;
  2. All public institutions of higher learning and all buildings and grounds belonging to those institutions;
  3. All lands used exclusively as graveyards or grounds for burying the dead, except those held by any person, company, or corporation with a view to profit or for the purpose of speculation in the sale of the lands;
  4. All property, whether real or personal, belonging exclusively to this state and heavy equipment, as defined in § 26-52-318, and motor vehicles, as defined in § 26-52-103, that are subject to a lease of at least twelve (12) months by the state, including property of state agencies, institutions, boards, or commissions, or the United States;
  5. All property, whether real or personal, belonging exclusively to any county of this state and heavy equipment, as defined in § 26-52-318, and motor vehicles, as defined in § 26-52-103, that are subject to a lease of at least twelve (12) months by a county of the state;
  6. All lands, houses, and other buildings belonging to any county, city, or town used exclusively for the accommodation of the poor;
  7. All buildings belonging to institutions of purely public charity, together with the land actually occupied by these institutions, not leased or otherwise used with a view to profit, and all moneys and credits appropriated solely to sustaining, and belonging exclusively to, these institutions;
  8. All fire engines and other implements used for the extinguishment of fires, with the buildings used exclusively for the safekeeping of the fire engines and other implements used for the extinguishment of fires, and for the meeting of fire companies, whether belonging to any town or to any fire company organized in the town;
  9. All market houses, public squares, other public grounds, town and city houses or halls owned and used exclusively for public purposes, and all works, machinery, and fixtures belonging to any town and used exclusively for conveying water to the town;
  10. Public property which may be reserved for use by any person or organization, with or without a fee for such use, and is being used exclusively for public purposes, regardless of whether the event for which the property is reserved is open for attendance or participation by the general public;
  11. All property owned by the Girls' 4-H house, Boys' 4-H house, and the Arkansas Future Farmers of America Association houses when the houses are used for the sole purpose of occupancy and use and enjoyment by students on the property and not leased or otherwise used with a view to profit; and
    1. Under the provisions of this section, all dedicated church property, including the church building used as a place of worship, buildings used for administrative or missional purposes, the land upon which the church buildings are located, all church parsonages, any church educational building operated in connection with the church, including a family life or activity center, a recreation center, a youth center, a church association building, a daycare center, a kindergarten, or a private church school shall be exempt.
    2. However, in the event any property is used partially for church purposes and partially for investments or other commercial or business purposes, the property shall be exempt from the ad valorem tax.

History. Acts 1883, No. 114, § 7, p. 199; C. & M. Dig., § 9858; Pope's Dig., § 13603; Acts 1953, No. 252, § 1; A.S.A. 1947, § 84-206; Acts 1987, No. 627, §§ 1, 2; 1987, No. 1040, § 1; 1995, No. 669, § 1; 2005, No. 1281, § 1; 2007, No. 827, § 195; 2019, No. 610, § 1.

Amendments. The 2019 amendment inserted “and heavy equipment, as defined in § 26-52-318, and motor vehicles, as defined in § 26-52-103, that are subject to a lease of at least twelve (12) months by the state” in (4); and added “and heavy equipment, as defined in § 26-52-318, and motor vehicles, as defined in § 26-52-103, that are subject to a lease of at least twelve (12) months by a county of the state” in (5).

Cross References. Exempting new manufacturing establishment from taxation, Ark. Const. Amend. 27.

Intangible personal property, Ark. Const. Amend. 57.

Other tax exemptions forbidden, Ark. Const., Art. 16, § 6.

Personal property taxes, Ark. Const. Amend. 71.

Property, tax exemptions, Ark. Const., Art. 16, §§ 5, 16.

State ad valorem tax prohibited, Ark. Const. Amend. 47.

Textile mills, tax exemptions, Ark. Const. Amend. 12.

Case Notes

In General.

All property is subject to taxation except such as is specially exempted by the Arkansas Constitution, and nothing else is or can be made exempt. Garland County v. Gaines, 56 Ark. 227, 19 S.W. 602 (1892).

Adjacent Property.

The parking lot, connecting driveways, and landscaped areas surrounding a tax-exempt church building, were also held to be exempt. Phillips v. Mission Fellowship Baptist Church, 59 Ark. App. 242, 955 S.W.2d 917 (1997).

Cemeteries.

When church building burned and members disbanded, only the portion used as a cemetery was exempt from taxation. Burbridge v. Smyrna Baptist Church, 212 Ark. 924, 209 S.W.2d 685 (1948).

A cemetery is exempt from taxation unless held for profit. Ponder v. Richardson, 213 Ark. 238, 210 S.W.2d 316 (1948).

Charities.

The fact that rents and revenues of certain real estate are devoted to purposes of public charity will not exempt such property from taxation, since it is only when the property itself is actually and directly used for charitable purposes that the law exempts it from taxation. Brodie v. Fitzgerald, 57 Ark. 445, 22 S.W. 29 (1893).

A hospital supported by contributions out of employees' wages and operated for the benefit of employees and persons injured on company property is not entitled to exemption as being an institution of public charity. Missouri Pac. Hosp. Ass'n v. Pulaski County, 211 Ark. 9, 199 S.W.2d 329 (1947).

Part of property for which rents were collected and which was not being directly and exclusively used for public charity was subjected to taxation, as the exemption is based upon the actual use of property rather than the use of its revenues. Burgess v. Four States Mem'l Hosp., 250 Ark. 485, 465 S.W.2d 693 (1971).

Churches.

A vacant lot belonging to a church adjoining the lot on which the church stands is subject to taxation. Pulaski County v. First Baptist Church, 86 Ark. 205, 110 S.W. 1034 (1908).

Lands conveyed to a religious society are exempt from taxes in part only as to portion used for religious purposes. Burbridge v. Smyrna Baptist Church, 212 Ark. 924, 209 S.W.2d 685 (1948).

Subdivision (11)(A) does not clearly embrace television towers or like structures with the degree of exactness and certainty required. Agape Church, Inc. v. Pulaski County, 307 Ark. 420, 821 S.W.2d 21 (1991).

A television tower is not a building, and the fact that a small incidental tower house was located on the property did not convert the land into a “building.” Agape Church, Inc. v. Pulaski County, 307 Ark. 420, 821 S.W.2d 21 (1991).

Ownership is not a condition for tax-exempt status for churches; use is determinative of entitlement to a tax exemption. Phillips v. Mission Fellowship Baptist Church, 59 Ark. App. 242, 955 S.W.2d 917 (1997).

Improvement Districts.

Exempt property is considered in the organization of improvement district according to its value fixed by the assessment roll, since it is not exempt from such assessments. Fry v. Poe, 175 Ark. 375, 1 S.W.2d 29 (1927).

Circuit court committed no reversible error in finding that a recreational improvement district was not operated exclusively for public purposes, and thus was not exempt from ad valorem taxes, where it was formed to serve the district inhabitants and “to contract for the right of the district's property owners”, there was a disparity in the membership fees paid by residents and nonresidents, thereby providing preferential access to residents, and portions of the clubhouse were leased out to a third-party vendor for profit. Silver Springs Prop. Owners' Rec. Improvement Dist. No. 30 of Haskell v. Arey, 2019 Ark. App. 520, 588 S.W.3d 864 (2019).

Municipalities.

Land purchased by a city for present use as a dumping ground and used as such for several months, though such use had been discontinued because the road to it had become impassable, was exempt from taxation. Hudgins v. City of Hot Springs, 168 Ark. 467, 270 S.W. 594 (1925).

Before a city can successfully claim exemption from taxation, the property must have been used for a public purpose; contemplated future use is not sufficient. City of Springdale v. Duncan, 240 Ark. 716, 401 S.W.2d 747 (1966).

Schools.

The exemption as to school buildings applies to private schools as well as public schools. Phillips County v. Sister Estelle, 42 Ark. 536 (1884).

Lands of school district held for profit are taxable. Board of Improv. v. School Dist., 56 Ark. 354, 19 S.W. 969 (1892); School Dist. v. Howe, 62 Ark. 481, 37 S.W. 717 (1896).

Cited: Fordyce & McKee v. Woman's Christian Nat'l Library Ass'n, 79 Ark. 550, 96 S.W. 155 (1906).

26-3-302. Intangible personalty.

  1. All intangible personal property in this state is exempt from all ad valorem tax levies of counties, cities, and school districts in the state.
  2. Intangible personal property includes without limitation a permit or license required to place, operate, or maintain at a specific location one (1) or more structures or fixtures and the value associated with the permit or license to place, operate, or maintain at a specific location the structures or fixtures.
  3. The exemption provided in this section applies with respect to the assessment and taxation of intangible personal property on and after January 1, 1976, and ad valorem taxes shall not be assessed or collected on intangible personal property for any period after January 1, 1976.

History. Acts 1977, No. 106, §§ 1, 2; A.S.A. 1947, §§ 84-213, 84-214; Acts 2015, No. 573, § 1.

Amendments. The 2015 amendment inserted (b); redesignated former (b) as (c); and, in (c), substituted “applies” for “shall be applicable” and “intangible personal” for “such” following “collected on”.

Cross References. Intangible personal property, Ark. Const. Amend. 57.

Effective Dates. Acts 2015, No. 573, § 3: effective for assessment years beginning on or after January 1, 2015.

Case Notes

Applicability.

Intangible personal property of a cable television company, including franchise agreements, customer relationships, and good will, was subject to ad valorem assessment and taxation under § 26-26-1606(b). The words “this subchapter” in § 26-26-1606 should be read to mean “this act,” as they did prior to changes by the Arkansas Code Revision Commission, and therefore included all companies subject to taxation by the Arkansas Public Service Commission. Falcon Cable Media LP v. Ark. Pub. Serv. Comm'n, 2012 Ark. 463, 425 S.W.3d 704 (2012).

Construction With Other Laws.

Under the principle that a specific statute controls over a general statute, §§ 26-26-1606 and 26-26-1611, which relate to utilities and which include tangible and intangible property for fixing value, control over this section, which provides that intangible personal property is exempt from all ad valorem tax levies. Ozark Gas Pipeline Corp. v. Ark. Pub. Serv. Comm'n, 342 Ark. 591, 29 S.W.3d 730 (2000).

Cited: Bunting v. Tedford, 261 Ark. 638, 550 S.W.2d 459 (1977).

26-3-303. Parsonages.

Parsonages owned by churches and used as homes for pastors shall be exempt from all taxes on real property, except improvement district taxes.

History. Acts 1945, No. 139, § 1; A.S.A. 1947, § 84-207.

26-3-304. Textile mills.

  1. No person, firm, or corporation shall be required to make or file with any county assessor or taxing authority in this state any return, report, or assessment of any kind as to or against any capital invested in a textile mill in this state for the manufacture of cotton or other fiber goods in any manner for a period of seven (7) years, all such capital being exempted from the provisions of all general taxation and assessment statutes and laws in this state which would otherwise be applicable for the period of seven (7) years.
  2. No taxes shall be assessed, levied upon, or collected on property used exclusively in the business of manufacturing textile goods in a textile mill located in this state for a period of seven (7) years after the location of a mill in this state.

History. Acts 1929, No. 74, § 2; Pope's Dig., § 13586; A.S.A. 1947, § 84-208.

Publisher's Notes. The initial part of Acts 1929, No. 74, § 2, provided for the cancellation of any assessment of textile mills since the adoption of Ark. Const. Amend. 12, and provided for a refund of any taxes paid to a collector, but not yet paid to the treasurer of the county, since the adoption of this constitutional amendment. Near the end of § 2 of the act there is also a provision for no assessment or levy of taxes on mills located in this state for a period of seven years after adoption of the amendment.

Cross References. Exempting new manufacturing establishment from taxation, Ark. Const. Amend. 27.

Textile mills, tax exemption, Ark. Const. Amend. 12.

Case Notes

Applicability.

Where on January 1, 1926, capital was already invested in a textile mill in the state, it became exempt from taxation under Ark. Const. Amend. 12. Wilson v. Monticello Cotton Mills Co., 180 Ark. 1090, 24 S.W.2d 324 (1930).

Limited Life Nonwoven Products.

Limited life nonwoven products produced from rayon and polyester fibers entitled manufacturer to tax exemption provided for in Ark. Const. Amend. 12 and this section, since to restrict the meaning of fiber goods to the products in existence in 1926 when the amendment was passed would require giving the words an extraordinary usage rather than the ordinary and natural meaning the law requires. Casey v. Scott Paper Co., 272 Ark. 312, 613 S.W.2d 821 (1981).

26-3-305. Nonprofit waterworks.

Waterworks systems owned by nonprofit property owners associations are public property used for public purposes and therefore exempt from ad valorem taxation.

History. Acts 1983, No. 332, § 1; A.S.A. 1947, § 84-216.

Cross References. Property taxed according to value, Ark. Const., Art. 16, § 5.

26-3-306. Disabled veterans, surviving spouses, and minor dependent children — Definition.

        1. A disabled veteran who has been awarded special monthly compensation by the Department of Veterans Affairs for the loss of, or the loss of use of, one (1) or more limbs, for total blindness in one (1) or both eyes, or for service-connected one hundred percent (100%) total and permanent disability shall be exempt from payment of all state taxes on the homestead and personal property owned by the disabled veteran.
          1. If a disabled veteran sells his or her home, the exemption shall be prorated to the date of sale so that the disabled veteran owes no tax for the portion of the year he or she claimed the home as a homestead, and the purchaser is liable only for taxes relating to the balance of the year.
          2. If a disabled veteran purchases a home that qualifies as a homestead, the exemption shall be prorated to the date of sale so that the disabled veteran owes no tax for the portion of the year he or she claimed the home as a homestead, and the seller is liable only for the taxes relating to the balance of the year.
          3. Upon request by the disabled veteran, the county collector shall make such record entries as may be necessary to effect the proration.
        1. Upon the death of the disabled veteran, the surviving spouse and minor dependent children of the disabled veteran shall be exempt from payment of all state taxes on the homestead and personal property owned by the surviving spouse and minor dependent children of the deceased disabled veteran.
        2. The surviving spouse and minor dependent children of a member of the United States Armed Forces who was killed while within the scope of his or her military duties, who died while within the scope of his or her military duties, or who is missing in action and the surviving spouse and minor dependent children of a veteran who died from service-connected causes, as certified by the department, shall also be exempt from payment of all state taxes on the homestead and personal property owned by the surviving spouse and minor dependent children.
          1. The surviving spouse shall be entitled to the exemption provided for in this section so long as the surviving spouse remains unmarried.
          2. The surviving spouse's exemptions provided for in this section are reinstated upon the termination of the surviving spouse's subsequent marriage.
        3. A surviving spouse of a member of the United States Armed Forces who died while on active duty shall be eligible for reinstatement of the homestead and personal property tax exemption upon termination of a subsequent marriage and until the surviving spouse remarries.
        4. The exemption provided in this section for surviving minor dependent children shall be available to the surviving children during their minority.
    1. As used in this section, “personal property” means only those items of tangible personal property used for other than a commercial or business purpose.
      1. A disabled veteran eligible for the exemption provided for in this section and desiring to claim an exemption shall furnish to the county collector a letter from the department verifying the fact that the disabled veteran is in receipt of special monthly compensation for the loss of or the loss of use of one (1) or more limbs, total blindness in one (1) or both eyes, or for service-connected one hundred percent (100%) total and permanent disability.
        1. A surviving spouse or minor dependent child of a deceased disabled veteran desiring to claim the exemption provided in this section shall furnish the county collector a letter from the department verifying the fact that the deceased disabled veteran was at the time of death entitled to receive a special monthly compensation for the loss of or the loss of use of one (1) or more limbs, total blindness in one (1) or both eyes, or for service-connected one hundred percent (100%) total and permanent disability.
        2. In addition to the requirements in subdivision (b)(1)(B)(i) of this section, the surviving spouse or minor dependent child of the deceased disabled veteran shall furnish the county collector with an affidavit signed by the surviving spouse or minor dependent child stating that the surviving spouse or minor dependent child is a surviving spouse or minor dependent child of the named deceased disabled veteran.
      1. The surviving spouse or minor dependent children of a member of the United States Armed Forces who was killed while within the scope of his or her military duties, who died while within the scope of his or her military duties, or who is missing in action, or a surviving spouse or minor dependent children of a veteran who died of service-connected causes, as certified by the department, desiring to claim the exemption provided in this section shall furnish the county collector a letter from the department certifying the fact that such a member of the United States Armed Forces is missing in action, was killed while within the scope of his or her military duties, or died while within the scope of his or her military duties or that the veteran died from service-connected causes and the surviving spouse is or would be entitled to department benefits in the form of death indemnity compensation if the surviving spouse were otherwise eligible to receive the department benefits.
      2. In addition, the surviving spouse or minor dependent child shall furnish the county collector with an affidavit signed by the surviving spouse or minor dependent child or the surviving spouse or minor dependent child's guardian stating that the surviving spouse or minor dependent child is a surviving spouse or minor dependent child of the member of the United States Armed Forces who is missing in action, who was killed while within the scope of his or her military duties, or who died while within the scope of his or her military duties or is the surviving spouse or minor dependent child of a veteran who died of service-connected causes as certified by the department.
  1. Only a disabled veteran and a surviving spouse and minor dependent child of a disabled veteran who are citizens and residents of the State of Arkansas shall be eligible for the exemption provided in this section.
  2. Any person evading or violating any provision of this section or attempting to secure benefits under this section to which he or she is not entitled shall be guilty of a violation and upon conviction shall be fined in any sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
  3. A person claiming the property tax exemption authorized by this section shall not be entitled to claim the property tax credit authorized in § 26-26-1118.
    1. If a person has established eligibility for the property tax exemption created under this section, the person shall be exempt from the date the person's eligibility is established regardless of the date the lien for the property taxes attached.
    2. After a person has established eligibility for the property tax exemption created under this section, the person is exempt from property taxes on his or her homestead regardless of where the homestead is located in the state.
    3. Upon request by a county in which a person eligible for the property tax exemption created under this section is claiming an exemption for his or her homestead, a county collector shall provide the information or documentation necessary to demonstrate that the person established eligibility for the exemption created under this section in a county in which the person previously claimed a homestead.

History. Acts 1953, No. 363, §§ 1-4; 1975, No. 196, §§ 1, 2; 1975, No. 319, §§ 1-3; 1975 (Extended Sess., 1976), No. 1220, §§ 1-3; 1977, No. 47, §§ 1, 2; A.S.A. 1947, §§ 84-209 — 84-212; reen. Acts 1987, No. 1010, §§ 1-3; Acts 1989, No. 354, § 1; 2001, No. 361, § 1; 2001, No. 1544, § 1; 2005, No. 1994, § 164; 2007, No. 411, § 1; 2015, No. 1167, §§ 1, 2.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1010, §§ 1-3. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2015 amendment, in (a)(1)(A)(ii) (a) , substituted “If a” for “In the event that the” and substituted “owes no tax” for “shall owe no tax”; inserted (a)(1)(A)(ii) (b) ; redesignated former (a)(1)(A)(ii) (b) as (a)(1)(A)(ii) (c) ; and added (f).

Research References

ALR.

Validity, Construction and Application of Statutory and Constitutional Provisions Exempting Real Property of Persons in Military Service, or Formerly in Such Service, from Taxation. 7 A.L.R.7th Art. 6 (2015).

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Taxation, 1 U. Ark. Little Rock L.J. 258.

Survey of Legislation, 2001 Arkansas General Assembly, Tax Law, 24 U. Ark. Little Rock L. Rev. 613.

Case Notes

Claiming Exemption.

Taxes voluntarily paid are not recoverable; where taxpayer voluntarily paid his taxes for the years 1980 through 1986, and claimed no exemption under subdivision (b)(1)(A) for any one of those years, he was not entitled to a refund. Rutherford v. Barnes, 312 Ark. 177, 847 S.W.2d 689 (1993).

26-3-307. [Transferred.]

A.C.R.C. Notes. This section, concerning adaptive medical equipment and disposable medical supplies, has been renumbered by Acts 2003, No. 1473, § 64 as § 26-52-433 and § 26-53-141.

26-3-308. Property owned by State Highway Commission or the Arkansas Department of Transportation.

  1. It is hereby found and determined by the Seventy-Eighth General Assembly and the Ninety-First General Assembly that all property owned by the State Highway Commission or the Arkansas Department of Transportation is public property used exclusively for public purposes.
  2. Since neither the commission nor the department pursuant to Arkansas Constitution, Article 16, § 5, is required to pay real or personal property taxes on real estate and tangible personal property owned by that commission or department, likewise, notwithstanding any provision of law to the contrary, the commission and department shall not be required to pay any improvement district assessments that may be assessed against the commission or department as a result of such ownership.

History. Acts 1991, No. 961, § 2; 2017, No. 707, § 292.

Amendments. The 2017 amendment, in (a), inserted “and the Ninety-First”, deleted “Arkansas” preceding “State Highway”, and substituted “Department of Transportation” for “State Highway and Transportation Department”.

26-3-309. [Transferred.]

A.C.R.C. Notes. This section, concerning fire protection equipment and emergency equipment, has been renumbered by Acts 2003, No. 1473, § 65 as § 26-52-434 and § 26-53-142.

26-3-310. [Transferred.]

A.C.R.C. Notes. This section, concerning wall and floor tile manufacturers, has been renumbered by Acts 2003, No. 1473, § 66 as § 26-52-435 and § 26-53-143.

26-3-311. Motor vehicles leased by municipalities.

A motor vehicle that is subject to a lease of at least twelve (12) months by a city or town of this state is public property used exclusively for public purposes and is exempt from ad valorem taxation.

History. Acts 2019, No. 610, § 2.

Chapter 4 Tax Incentives

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Motion Pictures

[Repealed.]

Publisher's Notes. For current law see Financial incentive for the production of motion pictures, § 15-4-2001 et seq.

26-4-201 — 26-4-210. [Repealed.]

Publisher's Notes. These sections, concerning tax incentives, were repealed by Acts 2013, No. 1143, § 1. The sections were derived from the following sources:

26-4-201. Acts 1983, No. 276, § 1; A.S.A. 1947, § 84-4801.

26-4-202. Acts 1983, No. 276, § 2; A.S.A. 1947, § 84-4802.

26-4-203. Acts 1983, No. 276, § 3; A.S.A. 1947, § 84-4803; Acts 1997, No. 540, § 53.

26-4-204. Acts 1983, No. 276, § 9; A.S.A. 1947, § 84-4809.

26-4-205. Acts 1983, No. 276, § 4; A.S.A. 1947, § 84-4804.

26-4-206. Acts 1983, No. 276, § 5; 1985, No. 895, § 1; A.S.A. 1947, § 84-4805; Acts 1991, No. 989, § 1.

26-4-207. Acts 1983, No. 276, § 12; A.S.A. 1947, § 84-4812.

26-4-208. Acts 1983, No. 276, § 6; 1985, No. 895, §§ 2-4; A.S.A. 1947, § 84-4806; Acts 1987, No. 1032, § 1; 1991, No. 989, § 2.

26-4-209. Acts 1983, No. 276, § 7; A.S.A. 1947, § 84-4807.

26-4-210. Acts 1983, No. 276, § 11; A.S.A. 1947, § 84-4811.

26-4-211. [Repealed.]

Publisher's Notes. This section, concerning the Motion Picture Office Fund, was repealed by Acts 2009, No. 816, § 3. The section was derived from Acts 1983, No. 276, § 8; A.S.A. 1947, § 84-4808.

26-4-212, 26-4-213. [Repealed.]

Publisher's Notes. These sections, concerning rules and regulations and disclaimer by state, were repealed by Acts 2013, No. 1143, § 1. The sections were derived from the following sources:

26-4-212. Acts 1983, No. 276, § 13; A.S.A. 1947, § 84-4813.

26-4-213. Acts 1983, No. 276, § 10; A.S.A. 1947, § 84-4810.

Chapter 5 Multistate Tax Compact

Publisher's Notes. Acts 1967, No. 410, § 7, provided that “nothing in this act shall be deemed to amend, repeal, or modify any of the provisions of the Income Tax Act of 1929 (Acts 1929, No. 118), or laws amendatory thereto, or the provisions of the Uniform Division of Income For Tax Purpose Act (Acts 1961, No. 413), or laws amendatory thereto, or any of the other tax laws of this state, it being the intent of this act that, by the enactment of the Multistate Tax Compact, the General Assembly has established an option, as authorized in this compact, whereby a multistate taxpayer may elect to report and pay taxes in accordance with the existing tax laws of this state or in accordance with the terms of the compact, as the taxpayer may elect.”

Effective Dates. Acts 1967, No. 410, § 9: Jan. 1, 1968.

Acts 1968 (1st Ex. Sess.), No. 59, § 3: Feb. 27, 1968. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Multistate Tax Commission is now meeting regularly and formulating policies; that, as the law now stands, the Commissioner of Revenues may only designate as his alternate either the Director of the Income Tax Division or the Director of the Sales Tax Division or the Assistant State Revenue Commissioner; that, at times, it is impossible for any of these three persons to attend the Multistate Tax Commission meetings; that, in order to give the Commissioner of Revenues a wider latitude in designating his alternate, this Act should become effective immediately. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 401, § 50: Jan. 1, 1980.

Acts 1989, No. 395, § 6: Mar. 7, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the provisions of Arkansas Code of 1987 Annotated § 26-53-101 et seq. do not specifically provide for allowance to be given to persons for similar taxes paid in other states; that the proper and effective administration of the compensating (use) tax will be greatly enhanced by the provisions of a reciprocal tax credit given by the State of Arkansas to purchasers who have previously paid a compensating tax in another state, provided that such other state offers the same tax credit to Arkansas purchasers for tangible personal property brought into the other state; that this act is immediately necessary in order to eliminate the possibility that Arkansas taxpayers will be subject to undue multiple taxation by other states due to the failure of the states' taxing authorities to equate the Arkansas Gross Receipts Tax to sales tax for purposes of allowing a reciprocal sales tax credit; that this act is also necessary to lessen the administrative burdens on taxpayers whose monthly gross receipts tax liability is relatively small in amount. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and welfare, shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 682, § 3: effective for tax years beginning on or after January 1, 1995.

Acts 2019, No. 822, § 27(b): “Sections 2-4 and 6-16 of this act are effective for tax years beginning on or after January 1, 2021.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019.”

Case Notes

Constitutionality.

The multistate tax compact does not impermissibly enhance state power at the expense of federal authority, and therefore the congressional approval requirements of U.S. Const., Art. 1, § 10, cl. 3, are inapplicable and the compact is valid without such approval; moreover, instances of unlawful enforcement of the compact, while they might amount to violations of U.S. Const. Amend. 14, are irrelevant to the facial validity of the compact. U.S. Steel Corp. v. Multistate Tax Comm'n, 434 U.S. 452, 98 S. Ct. 799, 54 L. Ed. 2d 682 (1978).

Interstate Carriers.

Where interstate air freight carrier would be given tax credit by another state under this compact, carrier was not subjected to double taxation because of imposition of compensating tax on aircraft brought to this state for extensive modifications before entering carrier's interstate operations. Skelton v. Federal Express Corp., 259 Ark. 127, 531 S.W.2d 941 (1976) (decision under prior law).

26-5-101. Multistate Tax Compact. [Effective until January 1, 2021.]

The “Multistate Tax Compact” is enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

MULTISTATE TAX COMPACT

ARTICLE I Purposes

The purposes of this compact are to:

  1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes;
  2. Promote uniformity or compatibility in significant components of tax systems;
  3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration;
  4. Avoid duplicative taxation.

ARTICLE II Definitions

As used in this compact:

  1. “State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States;
  2. “Subdivision” means any governmental unit or special district of a state;
  3. “Taxpayer” means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state;
  4. “Income tax” means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions;
  5. “Capital stock tax” means a tax measured in any way by the capital of a corporation considered in its entirety;
  6. “Gross receipts tax” means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax;
  7. “Sales tax” imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles;
  8. “Use tax” means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax;
  9. “Tax” means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

ARTICLE III Elements of Income Tax Laws

Taxpayer Option, State and Local Taxes.

  1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax.
  2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.
  3. Nothing in this article relates to the reporting or payment of any tax other than an income tax.

Taxpayer Option, Short Form.

Coverage.

ARTICLE IV Division of Income

  1. As used in this Article, unless the context otherwise requires:
    1. “Business income” means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation;
    2. “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed;
    3. “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;
    4. [Repealed.]
    5. “Nonbusiness income” means all income other than business income;
    6. “Public utility” means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency;
    7. “Sales” means all gross receipts of the taxpayer not allocated under paragraphs of this article;
    8. “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof;
    9. “This state” means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.
  2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article.
  3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
  4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.
    1. Net rents and royalties from real property located in this state are allocable to this state.
    2. Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
    3. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
    1. Capital gains and losses from sales of real property located in this state are allocable to this state.
    2. Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
    3. Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
  5. Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
    1. Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
    2. A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
    3. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
  6. All business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus double the sales factor, and the denominator of which is four (4).
  7. The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
  8. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals.
  9. The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the tax administrator may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.
  10. The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.
  11. Compensation is paid in this state if:
    1. The individual's service is performed entirely within the state;
    2. The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or
    3. Some of the service is performed in the state and (1) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (2) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
  12. The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
  13. Sales of tangible personal property are in this state if:
    1. The property is delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale; or
    2. The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (1) the purchaser is the United States Government or (2) the taxpayer is not taxable in the state of the purchaser.
  14. Sales, other than sales of tangible personal property, are in this state if:
    1. The income-producing activity is performed in this state; or
    2. The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
  15. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
    1. Separate accounting;
    2. The exclusion of any one (1) or more of the factors;
    3. The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or
    4. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V Elements of Sales and Use Tax Laws

Tax Credit.

  1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term “gross receipts tax” as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term “sales tax” as used by the state applying such credit.
  2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

Exemption Certificates, Vendors May Rely.

ARTICLE VI The Commission

Organization and Management.

    1. The Multistate Tax Commission is hereby established. It shall be composed of one (1) “member” from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article.
    2. Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.
    3. Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
    4. The commission shall adopt an official seal to be used as it may provide.
    5. The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
    6. The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
    7. Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.
    8. The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.
    9. The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
    10. The commission may establish one or more offices for the transacting of its business.
    11. The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.
    12. The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.
    1. To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission.
    2. The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.
    3. The commission may establish such additional committees as its bylaws may provide.
  1. In addition to powers conferred elsewhere in this compact, the commission shall have power to:
    1. Study state and local tax systems and particular types of state and local taxes;
    2. Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration;
    3. Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws;
    4. Do all things necessary and incidental to the administration of its functions pursuant to this compact.
    1. The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.
    2. Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth (1/10) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
    3. The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.
    4. The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.
    5. The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.
    6. Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

Committees.

Powers.

Finance.

ARTICLE VII Uniform Regulations and Forms

  1. Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact.
  2. Prior to the adoption of any regulation, the commission shall:
    1. As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.
    2. Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.
  3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII Interstate Audits

  1. This article shall be in force only in those party states that specifically provide therefor by statute.
  2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
  3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article.
  4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.
  5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.
  6. Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
  7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.
  8. In no event shall the commission make any charge against a taxpayer for an audit.
  9. As used in this article, “tax,” in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX Arbitration

  1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII.
  2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.
  3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.
  4. The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.
  5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.
  6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.
  7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.
  8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses.
  9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.
  10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed.
  11. The commission shall publish the determinations of boards together with the statements of the reasons therefor.
  12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.
  13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X Entry Into Force and Withdrawal

  1. This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.
  2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.
  3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
    1. Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact.
    2. Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of “tax” in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply.
    3. Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.
    4. Supersede or limit the jurisdiction of any court of the United States.

ARTICLE XI Effect on Other Laws and Jurisdiction

Nothing in this compact shall be construed to:

ARTICLE XII Construction and Severability

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

History. Acts 1967, No. 410, § 1; A.S.A. 1947, § 84-4101; Acts 1989, No. 395, § 1; 1989, No. 494, §§ 2, 4; 1995, No. 682, § 1.

Publisher's Notes. For text of section effective January 1, 2021, see the following version.

Research References

Ark. L. Rev.

Case Note, Pledger v. Illinois Tool Works, Inc.: Arkansas Belatedly Recognizes the Unitary Business Principle as a Limitation of Its Power to Tax Capital Gains of Nondomiciliary Corporations, 45 Ark. L. Rev. 597.

Case Notes

Cited: Pledger v. Brunner & Lay, Inc., 308 Ark. 512, 825 S.W.2d 599 (1992).

26-5-101. Multistate Tax Compact. [Effective January 1, 2021.]

The “Multistate Tax Compact” is enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

MULTISTATE TAX COMPACT

ARTICLE I Purposes

The purposes of this compact are to:

  1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes;
  2. Promote uniformity or compatibility in significant components of tax systems;
  3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration;
  4. Avoid duplicative taxation.

ARTICLE II Definitions

As used in this compact:

  1. “State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States;
  2. “Subdivision” means any governmental unit or special district of a state;
  3. “Taxpayer” means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state;
  4. “Income tax” means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions;
  5. “Capital stock tax” means a tax measured in any way by the capital of a corporation considered in its entirety;
  6. “Gross receipts tax” means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax;
  7. “Sales tax” imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles;
  8. “Use tax” means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax;
  9. “Tax” means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

ARTICLE III Elements of Income Tax Laws

Taxpayer Option, State and Local Taxes.

  1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax.
  2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.
  3. Nothing in this article relates to the reporting or payment of any tax other than an income tax.

Taxpayer Option, Short Form.

Coverage.

ARTICLE IV Division of Income

  1. As used in this Article, unless the context otherwise requires:
    1. “Business income” means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation;
    2. “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed;
    3. “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;
    4. [Repealed.]
    5. “Nonbusiness income” means all income other than business income;
    6. “Public utility” means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency;
    7. “Sales” means all gross receipts of the taxpayer not allocated under paragraphs of this article;
    8. “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof;
    9. “This state” means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.
  2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article.
  3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
  4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.
    1. Net rents and royalties from real property located in this state are allocable to this state.
    2. Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
    3. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
    1. Capital gains and losses from sales of real property located in this state are allocable to this state.
    2. Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
    3. Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
  5. Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
    1. Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
    2. A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
    3. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
  6. For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
  7. [Repealed.]
  8. [Repealed.]
  9. [Repealed.]
  10. [Repealed.]
  11. [Repealed.]
  12. [Repealed.]
  13. Sales of tangible personal property are in this state if:
    1. The property is delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale; or
    2. The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (1) the purchaser is the United States Government or (2) the taxpayer is not taxable in the state of the purchaser.
  14. Sales, other than sales of tangible personal property, are in this state if:
    1. The income-producing activity is performed in this state; or
    2. The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
  15. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
    1. Separate accounting;
    2. The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or
    3. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V Elements of Sales and Use Tax Laws

Tax Credit.

  1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term “gross receipts tax” as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term “sales tax” as used by the state applying such credit.
  2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

Exemption Certificates, Vendors May Rely.

ARTICLE VI The Commission

Organization and Management.

    1. The Multistate Tax Commission is hereby established. It shall be composed of one (1) “member” from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article.
    2. Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.
    3. Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
    4. The commission shall adopt an official seal to be used as it may provide.
    5. The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
    6. The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
    7. Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.
    8. The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.
    9. The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
    10. The commission may establish one or more offices for the transacting of its business.
    11. The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.
    12. The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.
    1. To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission.
    2. The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.
    3. The commission may establish such additional committees as its bylaws may provide.
  1. In addition to powers conferred elsewhere in this compact, the commission shall have power to:
    1. Study state and local tax systems and particular types of state and local taxes;
    2. Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration;
    3. Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws;
    4. Do all things necessary and incidental to the administration of its functions pursuant to this compact.
    1. The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.
    2. Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth (1/10) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
    3. The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.
    4. The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.
    5. The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.
    6. Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

Committees.

Powers.

Finance.

ARTICLE VII Uniform Regulations and Forms

  1. Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact.
  2. Prior to the adoption of any regulation, the commission shall:
    1. As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.
    2. Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.
  3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII Interstate Audits

  1. This article shall be in force only in those party states that specifically provide therefor by statute.
  2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
  3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article.
  4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.
  5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.
  6. Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
  7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.
  8. In no event shall the commission make any charge against a taxpayer for an audit.
  9. As used in this article, “tax,” in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX Arbitration

  1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII.
  2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.
  3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.
  4. The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.
  5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.
  6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.
  7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.
  8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses.
  9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.
  10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed.
  11. The commission shall publish the determinations of boards together with the statements of the reasons therefor.
  12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.
  13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X Entry Into Force and Withdrawal

  1. This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.
  2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.
  3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
    1. Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact.
    2. Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of “tax” in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply.
    3. Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.
    4. Supersede or limit the jurisdiction of any court of the United States.
    1. Every taxpayer required to file an income tax return pursuant to provisions of the Income Tax Act of 1929, § 26-51-101 et seq., whose only activity within this state consists of sales and does not include owning or renting real estate or tangible personal property in this state and whose dollar volume of gross sales made during the last year within the State of Arkansas or its subdivisions, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report any tax due the State of Arkansas on the basis of a percentage of this volume, and the Secretary of the Department of Finance and Administration is authorized to adopt rates which are calculated to produce a tax thereon which reasonably approximates the tax otherwise due under the laws of this state from these taxpayers.
    2. In the event the Multistate Tax Commission shall adjust the one-hundred-thousand-dollar figure provided in this section in the manner authorized in the Multistate Tax Compact, § 26-5-101, the adjusted figure shall replace the one-hundred-thousand-dollar figure provided in this section.
    1. The Governor, after consultation with representatives of local governments, may appoint a committee of three (3) persons who are representative of subdivisions of this state affected, or likely to be affected, by the Multistate Tax Compact, § 26-5-101.
    2. The member representing this state on the Multistate Tax Commission, or any alternate designated by him or her to serve on the commission, shall consult regularly with these appointees, if they are named, in accordance with Article VI 1(b) of the compact.
    1. The Department of Finance and Administration shall prepare an annual report detailing the activities of the Multistate Tax Commission and Arkansas's participation in the activities of the commission.
    2. The report required under this section shall:
      1. Include without limitation the recommendations of the commission and any activity on Arkansas's behalf by representatives of the department; and
      2. Be filed with the President Pro Tempore of the Senate and the Speaker of the House of Representatives no later than September 30 or the next regular business day if September 30 falls on a weekend or legal holiday.
    1. The Secretary of the Department of Finance and Administration shall employ one (1) or more attorneys for the Revenue Division of the Department of Finance and Administration if he or she deems it necessary and if a saving of money can be had by employing one (1) or more attorneys for the division.
    2. Each division attorney may maintain and defend the interests of the division in matters before:
      1. Administrative bodies;
      2. Arkansas trial courts;
      3. The Court of Appeals;
      4. The Supreme Court;
      5. The United States Supreme Court; and
      6. All other federal courts.
        1. The Secretary of the Department of Finance and Administration may:
          1. Institute and prosecute in his or her name as such all suits and other proceedings necessary for the collection of any taxes or fees collectible by him or her and which have become delinquent; and
          2. Defend all suits and other proceedings concerning taxes, fees, or licenses administered by the secretary.
        2. All suits and proceedings instituted by the secretary or defended by the secretary that concern taxes, fees, or licenses administered by the Revenue Division of the Department of Finance and Administration may be maintained or defended by an attorney authorized to represent the interests of the division pursuant to § 26-17-202.
      1. No deposits of advance cost shall be required of the secretary in any suit or proceedings, nor shall he or she be required to give bond for cost, indemnity, or stay as a condition to the institution of any suit or proceedings or to the issuance, service, or execution of any process in any suit or proceedings or ancillary to any suit or proceedings or to the appeal from any adverse action.
      1. The secretary shall not be required to advance or pay any court costs to any court clerk for the institution or prosecution of any suit filed in his or her official capacity.
      2. No bond shall be required of the secretary in obtaining restraining orders, injunctions, or any other cases in which a bond is required to be made by a litigant, including supersedeas bond upon appeal.
    1. Any person, firm, or corporation found guilty of violating provisions of this subchapter and any person, firm, or corporation that shall willfully evade or willfully fail to pay any Arkansas tax except ad valorem taxes on real estate as provided by law shall be guilty of a misdemeanor.
      1. Any person convicted shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than five thousand dollars ($5,000).
      2. Any person, firm, or corporation so convicted shall, as a part of the penalty of the conviction, pay to the state a sum equal to three (3) times the amount of taxes avoided.
      3. Any person or company official so convicted shall be punished by imprisonment in the county jail for a period of not to exceed six (6) months.
    2. Each transaction shall constitute a separate offense.
    1. If the Secretary of the Department of Finance and Administration, or any of his or her deputies or assistants shall collect or receive any tax, revenue, or funds by virtue of his or her official duties or position and shall neglect or fail to turn them over to the Treasurer of State within ten (10) days after the tax, revenue, or funds shall have come into his or her hands or possession, the offender shall be deemed guilty of a felony and be punished by confinement in the state penitentiary for a period of not less than one (1) year and not more than five (5) years.
    2. The secretary shall be liable upon his or her official bond for all funds not turned into the Treasurer of State within ten (10) days after they may come into the hands of the secretary or any of his or her deputies or assistants.
    1. The Secretary of the Department of Finance and Administration shall make daily deposits into the State Treasury of all moneys and checks collected by him or her.
    2. The Treasurer of State shall promptly return to the secretary all checks which for any reason were not paid, and it shall be the duty of the secretary to collect all such checks.
      1. If any return, claim, statement, or other document required to be filed within a prescribed period or on or before a prescribed date under any state tax law is, after that period or date, delivered by the United States mail to the Secretary of the Department of Finance and Administration, the date of the United States postmark stamped on the cover of the return, claim, statement, or other document shall be deemed to be the date of delivery.
      2. Only the postmark of the United States Postal Service, rather than those of private postage meters, shall qualify for the provisions of this section.
    1. When the last day prescribed under the authority of state tax laws for performing any act or instituting any suit falls on Saturday, Sunday, or a legal holiday, the performance of the act shall be considered timely if it is performed on the next succeeding business day which is not a Saturday, Sunday, or legal holiday.
    1. Any taxpayer who willfully attempts to evade or defeat the payment of any tax, penalty, or interest due under any state tax law shall be guilty of a Class C felony.
    2. Any person who willfully assists a taxpayer in evading or defeating the payment of any tax, penalty, or interest due under any state tax law shall be guilty of a Class C felony.
    1. The Secretary of the Department of Finance and Administration shall:
      1. Administer and enforce the provisions of every state tax law and when necessary shall promulgate and enforce the rules;
      2. Audit and properly determine and compute the state tax payable by any taxpayer subject to taxation under any state tax law;
      3. Assess and collect any state tax; and
      4. Administer and enforce all state tax laws.
    2. The secretary shall make available at cost to the general public all rules promulgated by the secretary.
    3. The secretary shall provide forms, schedules, and returns for all state tax laws.
    4. The secretary may accept electronic or digital signatures as binding, valid signatures on all reports, forms, or schedules required to be filed by state law.
      1. The Secretary of the Department of Finance and Administration shall keep and permanently preserve the original of all official rules, decisions, and orders and the effective date thereof.
        1. A copy of a rule, decision, or order made by the secretary in the administration of any state tax law may be authenticated under his or her official seal.
        2. An authenticated copy is admissible in any court in this state under § 16-46-101.
        3. The secretary may charge a reasonable fee, not to exceed five dollars ($5.00), to cover the cost of authentication.
        4. Under no circumstances shall the secretary furnish copies of records which may by law be prohibited from being made public.
      1. The secretary may microfilm any returns, reports, records, or documents received or issued by him or her in the administration of any state tax law.
      2. The microfilm records shall be properly indexed for easy retrieval, and one (1) copy shall be placed in a fireproof vault.
      3. These records are admissible as evidence in any court in this state under § 16-46-101 and shall have the same weight and force as the original thereof.
    1. If the secretary determines that a method for the reproduction of records is more practicable than the use of microfilm, he or she may use that method.
      1. The Secretary of the Department of Finance and Administration is the official custodian of all records and files required by any state tax law to be filed with the Secretary of the Department of Finance and Administration and is required to take all steps necessary to maintain their confidentiality.
          1. Except as otherwise provided by this chapter, the records and files of the Secretary of the Department of Finance and Administration concerning the administration of any state tax law are confidential and privileged.
          2. These records and files and any information obtained from these records or files or from any examination or inspection of the premises or property of any taxpayer shall not be divulged or disclosed by the Secretary of the Department of Finance and Administration or any other person who may have obtained these records and files.
        1. It is the specific intent of this chapter that all tax returns, audit reports, and information pertaining to any tax returns, whether filed by individuals, corporations, partnerships, or fiduciaries, shall not be subject to the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq.
    1. The provisions against disclosures shall not apply to the following:
      1. Publication of statistics by the Secretary of the Department of Finance and Administration classified to prevent the identification of a particular taxpayer;
      2. Use of the information in records filed under any state tax law by the Secretary of the Department of Finance and Administration when conducting any audit or investigation of any taxpayer in regard to any state tax;
        1. Disclosure of information to the Attorney General of this state, any prosecuting attorney, or any other individual who is empowered by law to prosecute criminal and civil violations of any state tax law when the Secretary of the Department of Finance and Administration initiates the investigation.
        2. If the prosecution is initiated by the Attorney General or a prosecuting attorney, the Secretary of the Department of Finance and Administration shall not disclose any information unless required by subpoena issued by a circuit court.
        3. Information may be introduced as evidence by the Attorney General, a prosecuting attorney, or other individual so empowered when the individual is prosecuting any civil or criminal violation of state tax law;
      3. Disclosure compelled by any Arkansas circuit court, the Supreme Court, the Court of Appeals, or by any federal court of information involved in any case or controversy before that court;
      4. Disclosure by the taxpayer or the taxpayer's authorized agent or by the Secretary of the Department of Finance and Administration, at the taxpayer's request, of any information which the Secretary of the Department of Finance and Administration has concerning that taxpayer;
      5. Disclosure by the Secretary of the Department of Finance and Administration, at the Secretary of the Department of Finance and Administration's discretion, of information from the records of any state tax law to comparable officials of any other state or the United States who are charged with the administration of a similar tax;
      6. Disclosure of motor vehicle titling and registration information, all licenses and permits issued to owners and operators of coin-operated amusement machines pursuant to §§ 26-57-402, 26-57-408 — 26-57-421, and 26-77-303, and tax records, files, and other information relating to sales of aviation fuel at airports and other aviation fuel outlets;
      7. Disclosure of information other than income tax information at an administrative hearing held regarding the issuance, cancellation, revocation, or suspension of licenses or permits issued by the Secretary of the Department of Finance and Administration or any other state agency or department;
        1. Disclosure to the Student Loan Authority Division of the Arkansas Development Finance Authority, the Division of Higher Education, the Student Loan Guarantee Foundation of Arkansas, or any Arkansas public institution of higher education of the last known address or whereabouts or the last known employer of any person from whom these agencies are charged with collecting a student loan or other student indebtedness.
        2. In providing such information, the Secretary of the Department of Finance and Administration shall not allow the Student Loan Authority Division of the Arkansas Development Finance Authority, the Student Loan Guarantee Foundation of Arkansas, the Division of Higher Education, or any Arkansas public institution of higher education to examine the tax return;
        1. In order to ensure proper payment to vendors by all agencies of state government or by county governments or city governments, information about the receipt or nonreceipt of sales tax permits by vendors must be made available by the Secretary of the Department of Finance and Administration upon request by these agencies of state government or by county governments or city governments.
        2. Therefore, notwithstanding any provision of this chapter or any other law to the contrary, in instances when state agencies, boards, commissions, and other branches of state government or county governments or city governments identify to the Secretary of the Department of Finance and Administration the identity of vendors receiving payments and ask the Secretary of the Department of Finance and Administration whether these vendors have been issued sales tax permits, the Secretary of the Department of Finance and Administration shall answer these inquiries;
      8. Disclosure of the name of any taxpayer and the amount of any tax credit, tax rebate, tax discount, or commission for the collection of a tax received by such taxpayer from the following tax incentive provisions:
        1. Discount for prompt payment, § 26-52-503;
        2. Economic Investment Tax Credit Act, § 26-52-701 et seq. [repealed];
        3. Steel mill tax incentives, §§ 26-52-901 — 26-52-903 and 26-52-912 — 26-52-914;
        4. Motor fuel shrinkage allowance, § 26-55-230(a)(1)(F);
        5. Commission for sale of stamps for cigarettes and the collection of cigarette taxes, § 26-57-236(f);
        6. Credit on severance tax of oil producer, § 26-58-204;
        7. Credit on severance tax of gas producer, § 26-58-205;
        8. Refund of motor fuel tax by municipal buses, § 26-55-401 et seq.;
        9. Refund of distillate special fuel tax to interstate users, §§ 26-56-214 and 26-56-215;
        10. Credit against severance tax for the discovery of a commercial oil pool, § 15-72-706;
        11. Native wines — subsidies, § 3-5-1001 et seq.;
        12. Native wines — incentive grants, § 3-5-901 et seq.;
        13. Consolidated Incentive Act of 2003, § 15-4-2701 et seq.; and
          1. Any other tax incentive program enacted after January 1, 1991, that provides a tax credit, tax rebate, tax discount, or commission for the collection of a tax, with the exception of any benefits under the income tax laws of this state.
          2. However, information that is subject to disclosure under the provisions of this subdivision (b)(11) shall not be disclosed if such information would give an advantage to competitors or bidders or if such information is exempt from disclosure under any other provision of law that exempts specified information from disclosure under any such law;
      9. Disclosure of the lists required by:
        1. Section 3-2-205(e)(4), reporting to the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board those taxpayers who hold a permit to sell alcoholic beverages and who are delinquent in state taxes; and
        2. Section 26-57-257(o)(2), reporting to the Arkansas Tobacco Control Board those taxpayers who hold a permit to sell tobacco products and cigarettes and who are delinquent in state taxes;
      10. Disclosure to the Tax Division of the Arkansas Public Service Commission of information contained in motor fuel tax records necessary to assess motor carrier companies for ad valorem taxation;
        1. Disclosure of the following information from corporate franchise tax reports:
          1. The name and address of the corporation;
          2. The name of the corporation's president, vice president, secretary, treasurer, and controller;
          3. The total authorized capital stock with par value;
          4. The total issued and outstanding capital stock with par value; and
          5. The state of incorporation.
        2. In the case of a franchise tax report filed by an organization formed under the Small Business Entity Tax Pass Through Act, § 4-32-101 et seq., the confidentiality provision of subsection (a) of this section shall apply to the names of members of the organization, except those designated in the organization's franchise tax report as a manager, president, vice president, secretary, treasurer, or controller of the organization, unless the organization has no registered agent for service of process, in which case the confidentiality provisions of subsection (a) of this section shall not apply;
      11. Disclosure compelled by a subpoena issued by a state or federal prosecutor or grand jury or other state or federal entity with subpoena power;
        1. Disclosure to county assessors of information that may affect personal property tax assessments, including information obtained during the course of audits or investigations concerning motor vehicles, boats, trailers, airplanes, or other items of personal property that may be subject to assessment in that county.
        2. This information may be released only following completion of an audit or investigation by the Secretary of the Department of Finance and Administration and following a determination by the Secretary of the Department of Finance and Administration that there is a strong possibility the taxpayer has failed to properly assess the taxpayer's personal property in the county.
        3. In providing this information, the Secretary of the Department of Finance and Administration shall not allow the county assessors to examine any tax returns or audit records;
        1. For the purpose of the timely and accurate collection of local sales and use tax and state income tax withholding for employees, disclosure of the name and address of a taxpayer that has failed three (3) times within any consecutive twenty-four-month period to either report or remit state or local gross receipts or compensating use tax or state income tax withholding for employees and has been served with a business closure order under § 26-18-1001 et seq.
        2. Disclosure shall be made by posting weekly on the website maintained by the Department of Finance and Administration the business name, business address, and city and county in which the business is located as it appears on the sales tax permit or the state income tax withholding for employees registration of each taxpayer identified in subdivision (b)(17)(A) of this section.
        3. The information posted on the website for a taxpayer shall remain on the website until that taxpayer is no longer subject to the business closure provisions of § 26-18-1001 et seq.;
        1. Disclosure to the Arkansas Economic Development Commission of any information requested regarding a tax incentive program that provides a tax credit, tax rebate, tax discount, or other economic incentive that is jointly administered by the Arkansas Economic Development Commission and the department.
        2. Any information received by the Arkansas Economic Development Commission under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
      12. Disclosure of information to a bankruptcy trustee or to an employee of a bankruptcy trustee;
        1. To perform audit and compliance duties, disclosure to the Division of Workforce Services of withholding tax information reported by companies doing business in Arkansas, including without limitation taxpayer names, taxpayer addresses, tax identification numbers, and tax withholding information.
        2. Information received by the Division of Workforce Services under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
      13. Disclosure of information, including disclosure as required under § 26-55-232, regarding delinquent motor fuel excise tax levied by the Motor Fuel Tax Law, § 26-55-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-55-222 for the taxpayer that owes the delinquent tax;
      14. Disclosure of information regarding delinquent distillate special fuel tax levied by § 26-56-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-56-204 for the taxpayer that owes the delinquent tax;
      15. Disclosure of information regarding delinquent liquefied gas special fuel tax levied by § 26-56-301 et seq. and by § 26-56-601 et seq. to a bonding company that provides the surety bond required by § 26-56-303 for the taxpayer that owes the delinquent tax;
        1. Disclosure of information in the books of the department concerning a taxpayer by the department to a joint auditor employed under the authority of § 26-75-619 when the joint auditor requests the information.
        2. Information received by the joint auditor under subdivision (b)(24)(A) of this section shall remain confidential and is not subject to disclosure except in accordance with this section; and
      16. Disclosure of information related to a business closure order under § 26-18-1001 et seq. to the Office of State Procurement for the purpose of carrying out §§ 19-11-281 and 19-11-1015.
    2. The provisions of this section shall be strictly interpreted and shall not permit any other disclosure of tax information concerning a taxpayer, whether the taxpayer is an individual, a corporation, a partnership, or a fiduciary, that is contained in the records and files of the Secretary of the Department of Finance and Administration relating to income tax or any other state tax administered under this chapter.
      1. Any person who knowingly discloses information in violation of a provision of this section shall be guilty of a Class A misdemeanor.
      2. An employee of the state who is convicted of violating a provision of this section shall be discharged from employment in addition to any fine or imprisonment.
    3. Any person who knowingly obtains or attempts to obtain any of the confidential and privileged records and files of the Secretary of the Department of Finance and Administration who is not so permitted by law is guilty of a Class A misdemeanor.
    4. The Secretary of the Department of Finance and Administration shall report all violations of this section to the appropriate prosecuting attorney in this state.
      1. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and release of information under subdivision (b)(11) of this section, for allowing a taxpayer reasonable notice in advance of the release of the requested information, for a period of time up to seven (7) days from the date a request for information is made to provide notice and make necessary determinations, and to provide the methods by which the Secretary of the Department of Finance and Administration shall determine if the information requested is subject to disclosure under Arkansas law.
      2. The provisions of this section shall solely govern the release of information under subdivision (b)(11) of this section, and the release of information shall not be subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.
      1. Upon the request of a county government or a city government, the Secretary of the Department of Finance and Administration shall provide a list of vendors within the requesting county or city who hold permits issued pursuant to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
      2. Requests made pursuant to this subsection must be made in writing by an official of the county government or city government prior to August 1 of the calendar year for which the list is requested.
      3. Lists provided pursuant to the provisions of this subsection will be made available following October 1 of the year requested and will be compiled from the list of all valid sales tax permit holders within the requesting county or city as of September 1 of the year requested.
        1. A reasonable fee based upon the number of permit holders within the requesting city or county may be charged for the permit search made and reported to the requesting county or city government.
        2. Fees collected under the provisions of this subsection shall be deposited into the State Central Services Fund to be treated as a refund of expenditures to reimburse the department for the costs of providing the requested information.
      1. The Secretary of the Department of Finance and Administration may disclose information from a return filed by a person, partnership, corporation, trust, or estate to any of the parties who signed the return:
        1. Who is the administrator, executor, or trustee of the estate filing the return;
        2. Who was a member of the partnership filing the return during any part of the period covered by the return;
        3. Who is a trustee or beneficiary of the trust filing the return;
        4. Who is an officer or bona fide shareholder of record owning one percent (1%) or more of the outstanding stock of the corporation filing the return;
        5. Who was a shareholder during any part of the period covered by the return filed by a Subchapter S corporation;
        6. Who was a member of the partnership during any part of the period covered by the partnership return; or
        7. Who is the attorney in fact duly authorized in writing by any of the persons described in subdivisions (i)(1)(A)-(F) of this section.
      2. The Secretary of the Department of Finance and Administration may also disclose all information concerning the collection activity related to a tax return to any party who signed the return.
      3. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and for the release of information under this section.
      1. The General Assembly finds that:
        1. The collection of cigarette and other tobacco products taxes and the enforcement of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., §§ 26-57-260 and 26-57-261, and §§ 26-57-1301 — 26-57-1307, affect the fiscal soundness of the state and the public health;
        2. The Attorney General and the Director of Arkansas Tobacco Control play an important role in the enforcement of the state's tobacco laws; and
        3. The sharing of documents and other information between the Secretary of the Department of Finance and Administration, the Attorney General, and the director will put the state in a better position to prevent tobacco diversion and prevent cigarettes from being sold to youth and an already addicted adult population.
      2. The Secretary of the Department of Finance and Administration may disclose documents and other information submitted by stamp deputies appointed under § 26-57-236 or those persons licensed or permitted under the terms of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., to the Attorney General or the director upon the request of the Attorney General or the director.
        1. The documents and other information provided under this subsection shall not be disclosed by the Attorney General or the director to a person other than a person specifically authorized by the Attorney General or the director to receive the documents or other information.
        2. However, the Attorney General and the director may share the documents and other information provided under this subsection with the taxing authorities or law enforcement agencies of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the documents and other information, if the parties agree to the confidentiality requirements under this subsection.
        1. The Attorney General and the director may use the documents and other information provided under this subsection by the Secretary of the Department of Finance and Administration in proceedings before any court.
          1. However, the documents and other information shall not be presented in court except with the approval of the court in which the action is pending and after adequate notice to the person who initially furnished the documents or other information to the Secretary of the Department of Finance and Administration.
          2. When confidential information is presented with court approval, the documents and other information and the related evidence shall be held in camera and shall be part of the court record or trial transcript only if under seal.
      1. The Secretary of the Department of Finance and Administration is the official custodian of all records and files required by any state tax law to be filed with the Secretary of the Department of Finance and Administration and is required to take all steps necessary to maintain their confidentiality.
          1. Except as otherwise provided by this chapter, the records and files of the Secretary of the Department of Finance and Administration concerning the administration of any state tax law are confidential and privileged.
          2. These records and files and any information obtained from these records or files or from any examination or inspection of the premises or property of any taxpayer shall not be divulged or disclosed by the Secretary of the Department of Finance and Administration or any other person who may have obtained these records and files.
        1. It is the specific intent of this chapter that all tax returns, audit reports, and information pertaining to any tax returns, whether filed by individuals, corporations, partnerships, or fiduciaries, shall not be subject to the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq.
    1. The provisions against disclosures shall not apply to the following:
      1. Publication of statistics by the Secretary of the Department of Finance and Administration classified to prevent the identification of a particular taxpayer;
      2. Use of the information in records filed under any state tax law by the Secretary of the Department of Finance and Administration when conducting any audit or investigation of any taxpayer in regard to any state tax;
        1. Disclosure of information to the Attorney General of this state, any prosecuting attorney, or any other individual who is empowered by law to prosecute criminal and civil violations of any state tax law when the Secretary of the Department of Finance and Administration initiates the investigation.
        2. If the prosecution is initiated by the Attorney General or a prosecuting attorney, the Secretary of the Department of Finance and Administration shall not disclose any information unless required by subpoena issued by a circuit court.
        3. Information may be introduced as evidence by the Attorney General, a prosecuting attorney, or other individual so empowered when the individual is prosecuting any civil or criminal violation of state tax law;
      3. Disclosure compelled by any Arkansas circuit court, the Supreme Court, the Court of Appeals, or by any federal court of information involved in any case or controversy before that court;
      4. Disclosure by the taxpayer or the taxpayer's authorized agent or by the Secretary of the Department of Finance and Administration, at the taxpayer's request, of any information which the Secretary of the Department of Finance and Administration has concerning that taxpayer;
      5. Disclosure by the Secretary of the Department of Finance and Administration, at the Secretary of the Department of Finance and Administration's discretion, of information from the records of any state tax law to comparable officials of any other state or the United States who are charged with the administration of a similar tax;
      6. Disclosure of motor vehicle titling and registration information, all licenses and permits issued to owners and operators of coin-operated amusement machines pursuant to §§ 26-57-402, 26-57-408 — 26-57-421, and 26-77-303, and tax records, files, and other information relating to sales of aviation fuel at airports and other aviation fuel outlets;
      7. Disclosure of information other than income tax information at an administrative hearing held regarding the issuance, cancellation, revocation, or suspension of licenses or permits issued by the Secretary of the Department of Finance and Administration or any other state agency or department;
        1. Disclosure to the Student Loan Authority Division of the Arkansas Development Finance Authority, the Division of Higher Education, the Student Loan Guarantee Foundation of Arkansas, or any Arkansas public institution of higher education of the last known address or whereabouts or the last known employer of any person from whom these agencies are charged with collecting a student loan or other student indebtedness.
        2. In providing such information, the Secretary of the Department of Finance and Administration shall not allow the Student Loan Authority Division of the Arkansas Development Finance Authority, the Student Loan Guarantee Foundation of Arkansas, the Division of Higher Education, or any Arkansas public institution of higher education to examine the tax return;
        1. In order to ensure proper payment to vendors by all agencies of state government or by county governments or city governments, information about the receipt or nonreceipt of sales tax permits by vendors must be made available by the Secretary of the Department of Finance and Administration upon request by these agencies of state government or by county governments or city governments.
        2. Therefore, notwithstanding any provision of this chapter or any other law to the contrary, in instances when state agencies, boards, commissions, and other branches of state government or county governments or city governments identify to the Secretary of the Department of Finance and Administration the identity of vendors receiving payments and ask the Secretary of the Department of Finance and Administration whether these vendors have been issued sales tax permits, the Secretary of the Department of Finance and Administration shall answer these inquiries;
      8. Disclosure of the name of any taxpayer and the amount of any tax credit, tax rebate, tax discount, or commission for the collection of a tax received by such taxpayer from the following tax incentive provisions:
        1. Discount for prompt payment, § 26-52-503;
        2. Economic Investment Tax Credit Act, § 26-52-701 et seq. [repealed];
        3. Steel mill tax incentives, §§ 26-52-901 — 26-52-903 and 26-52-912 — 26-52-914;
        4. Motor fuel shrinkage allowance, § 26-55-230(a)(1)(F);
        5. Commission for sale of stamps for cigarettes and the collection of cigarette taxes, § 26-57-236(f);
        6. Credit on severance tax of oil producer, § 26-58-204;
        7. Credit on severance tax of gas producer, § 26-58-205;
        8. Refund of motor fuel tax by municipal buses, § 26-55-401 et seq.;
        9. Refund of distillate special fuel tax to interstate users, §§ 26-56-214 and 26-56-215;
        10. Credit against severance tax for the discovery of a commercial oil pool, § 15-72-706;
        11. Native wines — subsidies, § 3-5-1001 et seq.;
        12. Native wines — incentive grants, § 3-5-901 et seq.;
        13. Consolidated Incentive Act of 2003, § 15-4-2701 et seq.; and
          1. Any other tax incentive program enacted after January 1, 1991, that provides a tax credit, tax rebate, tax discount, or commission for the collection of a tax, with the exception of any benefits under the income tax laws of this state.
          2. However, information that is subject to disclosure under the provisions of this subdivision (b)(11) shall not be disclosed if such information would give an advantage to competitors or bidders or if such information is exempt from disclosure under any other provision of law that exempts specified information from disclosure under any such law;
      9. Disclosure of the lists required by:
        1. Section 3-2-205(e)(4), reporting to the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board those taxpayers who hold a permit to sell alcoholic beverages and who are delinquent in state taxes; and
        2. Section 26-57-257(o)(2), reporting to the Arkansas Tobacco Control Board those taxpayers who hold a permit to sell tobacco products and cigarettes and who are delinquent in state taxes;
      10. Disclosure to the Tax Division of the Arkansas Public Service Commission of information contained in motor fuel tax records necessary to assess motor carrier companies for ad valorem taxation;
        1. Disclosure of the following information concerning corporate franchise tax:
          1. The name and address of a corporation;
          2. The name of a corporation's president, vice president, secretary, treasurer, and controller;
          3. The total authorized capital stock with par value;
          4. The total issued and outstanding capital stock with par value;
          5. The state of incorporation; and
          6. Information necessary to report to the Secretary of State, the Bank Commissioner, the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board, the Insurance Commissioner, or any other state agency or official authorized to take action against a corporation for failure to take any action required under the Arkansas Corporate Franchise Tax Act of 1979, § 26-54-101 et seq., including without limitation information concerning whether a corporation has filed a franchise tax report, whether a corporation has paid franchise tax due, and the name and address of the registered agent or principal office of the corporation.
        2. In the case of a franchise tax report filed by an organization formed under the Small Business Entity Tax Pass Through Act, § 4-32-101 et seq., the confidentiality provision of subsection (a) of this section shall apply to the names of members of the organization, except those designated in the organization's franchise tax report as a manager, president, vice president, secretary, treasurer, or controller of the organization, unless the organization has:
          1. No registered agent for service of process, in which case the confidentiality provisions of subsection (a) of this section shall not apply; or
          2. Failed to take an action required under the Arkansas Corporate Franchise Tax Act of 1979, § 26-54-101 et seq., in which case the disclosures identified in subdivision (b)(14)(A) of this section are allowed;
      11. Disclosure compelled by a subpoena issued by a state or federal prosecutor or grand jury or other state or federal entity with subpoena power;
        1. Disclosure to county assessors of information that may affect personal property tax assessments, including information obtained during the course of audits or investigations concerning motor vehicles, boats, trailers, airplanes, or other items of personal property that may be subject to assessment in that county.
        2. This information may be released only following completion of an audit or investigation by the Secretary of the Department of Finance and Administration and following a determination by the Secretary of the Department of Finance and Administration that there is a strong possibility the taxpayer has failed to properly assess the taxpayer's personal property in the county.
        3. In providing this information, the Secretary of the Department of Finance and Administration shall not allow the county assessors to examine any tax returns or audit records;
        1. For the purpose of the timely and accurate collection of local sales and use tax and state income tax withholding for employees, disclosure of the name and address of a taxpayer that has failed three (3) times within any consecutive twenty-four-month period to either report or remit state or local gross receipts or compensating use tax or state income tax withholding for employees and has been served with a business closure order under § 26-18-1001 et seq.
        2. Disclosure shall be made by posting weekly on the website maintained by the Department of Finance and Administration the business name, business address, and city and county in which the business is located as it appears on the sales tax permit or the state income tax withholding for employees registration of each taxpayer identified in subdivision (b)(17)(A) of this section.
        3. The information posted on the website for a taxpayer shall remain on the website until that taxpayer is no longer subject to the business closure provisions of § 26-18-1001 et seq.;
        1. Disclosure to the Arkansas Economic Development Commission of any information requested regarding a tax incentive program that provides a tax credit, tax rebate, tax discount, or other economic incentive that is jointly administered by the Arkansas Economic Development Commission and the department.
        2. Any information received by the Arkansas Economic Development Commission under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
      12. Disclosure of information to a bankruptcy trustee or to an employee of a bankruptcy trustee;
        1. To perform audit and compliance duties, disclosure to the Division of Workforce Services of withholding tax information reported by companies doing business in Arkansas, including without limitation taxpayer names, taxpayer addresses, tax identification numbers, and tax withholding information.
        2. Information received by the Division of Workforce Services under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
      13. Disclosure of information, including disclosure as required under § 26-55-232, regarding delinquent motor fuel excise tax levied by the Motor Fuel Tax Law, § 26-55-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-55-222 for the taxpayer that owes the delinquent tax;
      14. Disclosure of information regarding delinquent distillate special fuel tax levied by § 26-56-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-56-204 for the taxpayer that owes the delinquent tax;
      15. Disclosure of information regarding delinquent liquefied gas special fuel tax levied by § 26-56-301 et seq. and by § 26-56-601 et seq. to a bonding company that provides the surety bond required by § 26-56-303 for the taxpayer that owes the delinquent tax;
        1. Disclosure of information in the books of the department concerning a taxpayer by the department to a joint auditor employed under the authority of § 26-75-619 when the joint auditor requests the information.
        2. Information received by the joint auditor under subdivision (b)(24)(A) of this section shall remain confidential and is not subject to disclosure except in accordance with this section; and
      16. Disclosure of information related to a business closure order under § 26-18-1001 et seq. to the Office of State Procurement for the purpose of carrying out §§ 19-11-281 and 19-11-1015.
    2. The provisions of this section shall be strictly interpreted and shall not permit any other disclosure of tax information concerning a taxpayer, whether the taxpayer is an individual, a corporation, a partnership, or a fiduciary, that is contained in the records and files of the Secretary of the Department of Finance and Administration relating to income tax or any other state tax administered under this chapter.
      1. Any person who knowingly discloses information in violation of a provision of this section shall be guilty of a Class A misdemeanor.
      2. An employee of the state who is convicted of violating a provision of this section shall be discharged from employment in addition to any fine or imprisonment.
    3. Any person who knowingly obtains or attempts to obtain any of the confidential and privileged records and files of the Secretary of the Department of Finance and Administration who is not so permitted by law is guilty of a Class A misdemeanor.
    4. The Secretary of the Department of Finance and Administration shall report all violations of this section to the appropriate prosecuting attorney in this state.
      1. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and release of information under subdivision (b)(11) of this section, for allowing a taxpayer reasonable notice in advance of the release of the requested information, for a period of time up to seven (7) days from the date a request for information is made to provide notice and make necessary determinations, and to provide the methods by which the Secretary of the Department of Finance and Administration shall determine if the information requested is subject to disclosure under Arkansas law.
      2. The provisions of this section shall solely govern the release of information under subdivision (b)(11) of this section, and the release of information shall not be subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.
      1. Upon the request of a county government or a city government, the Secretary of the Department of Finance and Administration shall provide a list of vendors within the requesting county or city who hold permits issued pursuant to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
      2. Requests made pursuant to this subsection must be made in writing by an official of the county government or city government prior to August 1 of the calendar year for which the list is requested.
      3. Lists provided pursuant to the provisions of this subsection will be made available following October 1 of the year requested and will be compiled from the list of all valid sales tax permit holders within the requesting county or city as of September 1 of the year requested.
        1. A reasonable fee based upon the number of permit holders within the requesting city or county may be charged for the permit search made and reported to the requesting county or city government.
        2. Fees collected under the provisions of this subsection shall be deposited into the State Central Services Fund to be treated as a refund of expenditures to reimburse the department for the costs of providing the requested information.
      1. The Secretary of the Department of Finance and Administration may disclose information from a return filed by a person, partnership, corporation, trust, or estate to any of the parties who signed the return:
        1. Who is the administrator, executor, or trustee of the estate filing the return;
        2. Who was a member of the partnership filing the return during any part of the period covered by the return;
        3. Who is a trustee or beneficiary of the trust filing the return;
        4. Who is an officer or bona fide shareholder of record owning one percent (1%) or more of the outstanding stock of the corporation filing the return;
        5. Who was a shareholder during any part of the period covered by the return filed by a Subchapter S corporation;
        6. Who was a member of the partnership during any part of the period covered by the partnership return; or
        7. Who is the attorney in fact duly authorized in writing by any of the persons described in subdivisions (i)(1)(A)-(F) of this section.
      2. The Secretary of the Department of Finance and Administration may also disclose all information concerning the collection activity related to a tax return to any party who signed the return.
      3. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and for the release of information under this section.
      1. The General Assembly finds that:
        1. The collection of cigarette and other tobacco products taxes and the enforcement of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., §§ 26-57-260 and 26-57-261, and §§ 26-57-1301 — 26-57-1307, affect the fiscal soundness of the state and the public health;
        2. The Attorney General and the Director of Arkansas Tobacco Control play an important role in the enforcement of the state's tobacco laws; and
        3. The sharing of documents and other information between the Secretary of the Department of Finance and Administration, the Attorney General, and the director will put the state in a better position to prevent tobacco diversion and prevent cigarettes from being sold to youth and an already addicted adult population.
      2. The Secretary of the Department of Finance and Administration may disclose documents and other information submitted by stamp deputies appointed under § 26-57-236 or those persons licensed or permitted under the terms of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., to the Attorney General or the director upon the request of the Attorney General or the director.
        1. The documents and other information provided under this subsection shall not be disclosed by the Attorney General or the director to a person other than a person specifically authorized by the Attorney General or the director to receive the documents or other information.
        2. However, the Attorney General and the director may share the documents and other information provided under this subsection with the taxing authorities or law enforcement agencies of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the documents and other information, if the parties agree to the confidentiality requirements under this subsection.
        1. The Attorney General and the director may use the documents and other information provided under this subsection by the Secretary of the Department of Finance and Administration in proceedings before any court.
          1. However, the documents and other information shall not be presented in court except with the approval of the court in which the action is pending and after adequate notice to the person who initially furnished the documents or other information to the Secretary of the Department of Finance and Administration.
          2. When confidential information is presented with court approval, the documents and other information and the related evidence shall be held in camera and shall be part of the court record or trial transcript only if under seal.
    1. Any bond required by any state tax law shall be subject to the approval of the Secretary of the Department of Finance and Administration as to form, sufficiency, value, amount, stability, and other features necessary to provide a guarantee of payment of the tax due the state under this chapter.
    2. Where a bond is required for the purpose of insuring any state tax law, and written notice of termination is required before the bond can be terminated, the party issuing the bond cannot be required to provide the written notice of termination more than sixty (60) days prior to the date the bond is to be terminated.
    3. The length of time required for the notice of termination shall be calculated from the date of receipt of the notice of termination, rather than the date of mailing.
    4. The term “bond” shall mean any bond, letter of credit, or assignment of a certificate of deposit.
        1. In the administration of any state tax law, the Secretary of the Department of Finance and Administration, for the purpose of determining the accuracy of a return or fixing any liability under any state tax law, may make an examination or investigation of the place of business, the tangible personal property, equipment, and facilities, and the books, records, papers, vouchers, accounts, and documents of any taxpayer or other person.
        2. Every taxpayer or other person and his or her agents and employees shall exhibit to the secretary these places and items and facilitate any examination or investigation.
        1. The secretary may employ proper and reasonable audit methods as he or she deems necessary, including the use of sampling.
        2. If sampling is to be employed as an audit method, the taxpayer's consent to the sampling technique must be obtained at the commencement of the audit.
    1. No taxpayer shall be subjected to unnecessary examination or investigations, and only one (1) inspection of a taxpayer's books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the secretary, after investigation, notifies the taxpayer in writing that an additional inspection is necessary.
      1. When conducting an investigation or an audit of any taxpayer, the secretary may, in his or her discretion, examine the records and files of any person, except when privileged by law, any other business, institution, financial institution, the records of any state agency, agency of the United States Government, or agency of any other state when permitted by agreement or reciprocity.
        1. The secretary may compel production of these records by summons.
        2. The summons may be served directly by the secretary.
    2. In the administration of any state tax law, the secretary may:
      1. Administer oaths, conduct hearings, and compel by summons the attendance of witnesses, testimony, and the production of any books, records, papers, or other data of any person or taxpayer; or
        1. Examine under oath any person regarding the business of any taxpayer concerning any matter incident to the administration of any state tax law.
          1. The fees of witnesses required by the secretary to attend any hearing shall be the same as those allowed to the witnesses appearing before circuit courts of this state.
          2. The fees shall be paid in the manner provided for the payment of other expenses incident to the administration of any state tax law.
      1. The investigation may extend to any person that the secretary determines has access to information which may be relevant to the examination or investigation.
      2. When any summons requiring the production of records as described in subsection (c) of this section is served on a third-party recordkeeper, written notice of the summons shall be mailed to the taxpayer that his or her records are being summoned, at least fourteen (14) days prior to the date fixed in the summons as the day for the examination of the records.
      3. Notice to the taxpayer required by this section is sufficient if it is mailed by certified mail to the last address on record with the secretary.
    3. When the secretary has the power to issue a summons for his or her own investigative or auditing purposes, then the secretary shall honor any reasonable request by any taxpayer to issue a summons on the taxpayer's behalf.
      1. The secretary or the taxpayer may apply to the circuit court of the county of the taxpayer's residence, place of business, or county where the summons can be served as with any other case at law for any order compelling the production of the summoned records.
      2. Failure to comply with the order of the court for the production of records may be punished by the court as for contempt.
      1. The cost of producing records of a third party required by a summons shall be borne by the taxpayer if he or she requests the summons to be issued.
        1. If the secretary initiates the summons for third-party records, the secretary shall bear the reasonable cost of producing the records.
        2. The secretary may later assess the cost against any delinquent or deficient taxpayer as determined by the records.
      1. The secretary may examine the books, records, and other documents of transportation companies, agencies, firms, or persons that conduct business by truck, rail, water, airplane, or otherwise in order to determine any sales or use tax due on out-of-state purchases and to determine which dealers are importing or shipping articles of tangible personal property and are liable for any state tax.
      2. If the transportation company, agency, firm, or person refuses to allow an examination of its books, records, and other documents, the secretary may petition the appropriate circuit court to require the transportation company, agency, firm, or person to show cause as to why its books, records, and other documents should not be examined and why a bond should not be required in an amount not to exceed two thousand dollars ($2,000) for a period of not more than one (1) year to guarantee compliance with the provisions of this section.
      3. Refusal to permit the secretary to examine books, records, and other documents pursuant to this section is a Class C misdemeanor.
      1. Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later.
      2. The Secretary of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax.
      1. Notwithstanding subsection (a) of this section, if the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States of competent authority, the taxpayer, within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service, shall report to the Secretary of the Department of Finance and Administration the corrected federal tax, taxable income, or taxable estate for the taxable period covered by the change on an amended Arkansas income tax return.
        1. If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer.
        2. However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed.
        3. If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment.
        1. Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service.
        2. A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later.
      2. A change or correction to taxable income made by the Internal Revenue Service that results in additional state income tax due from the taxpayer does not entitle the Secretary of the Department of Finance and Administration to issue an assessment unless fewer than three (3) years have elapsed from the date the original return for the year not included in the notice was required to be filed or the date the original return was filed, whichever of the periods expires later, for:
        1. A tax year that is not included in the notice of change or correction; or
        2. An issue that is not included in the notice of change or correction.
      3. A change or correction to taxable income made by the Internal Revenue Service that results in a refund to the taxpayer does not entitle the taxpayer to receive a refund unless fewer than three (3) years have elapsed from the date the original return for the tax year not included in the notice was filed or fewer than two (2) years have elapsed from the time that income tax due on the original return was paid, whichever of the periods expires later, for:
        1. A tax year that is not included within the notice of change or correction; or
        2. An issue that is not included in the notice of change or correction.
    1. Upon written agreement of the Secretary of the Department of Finance and Administration and the taxpayer, the time within which the Secretary of the Department of Finance and Administration may make a final assessment, as provided by § 26-18-401, may be extended to a date mutually agreed upon in the written agreement.
      1. When, before the expiration of the time prescribed for the assessment of the tax or of extensions of the time prescribed for the assessment of the tax consented to in writing, both the Secretary of the Department of Finance and Administration and the taxpayer have consented in writing to an assessment after that time, then the tax may be assessed at any time prior to the expiration of the time agreed upon.
      2. When the time to file a claim for a refund has not expired at the time the extension agreement is entered into, the agreement shall automatically extend the period in which a refund may be allowed or a claim for a refund may be filed to the final date agreed to in the agreement, plus sixty (60) days.
    2. If a taxpayer understates a state tax due by an amount equal to or greater than twenty-five percent (25%) in any return or report or in the case of an income tax, if the taxpayer underreports net taxable income by twenty-five percent (25%) or more, the Secretary of the Department of Finance and Administration may assess the tax due or begin an action in court for the collection of the tax due at any time prior to the expiration of six (6) years after the return was required to be filed or the date the return was filed, whichever period expires later.
    3. In the case of a fraudulent return or failure to file a report or return required under any state tax law, the Secretary of the Department of Finance and Administration may compute, determine, and assess the estimated amount of tax due from any information in his or her possession or may begin an action in court for the collection of the tax without assessment, at any time.
    4. Whenever a taxpayer requests an extension of time for filing any return required by any state tax law, the limitation of time for assessing any tax shall be extended for a like period.
      1. Except as otherwise provided in this chapter, when the assessment of any tax imposed by any state law has been made within the period of limitation properly applicable to the assessment, the tax may be collected by levy or proceeding in court, but only if the levy is made or the proceeding is begun within ten (10) years after the date of the assessment of the tax.
      2. A bankruptcy filing by a taxpayer tolls the ten-year collection period stated in subdivision (h)(1) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.
        1. An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later.
        2. The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose.
        3. Subdivision (i)(1)(A) of this section does not apply:
          1. To a tax paid as a result of an audit or proposed assessment; or
            1. If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority.
            2. Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii)(a) of this section.
          1. If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed.
          2. However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period.
      1. Any taxpayer who fails to file a return, underreports his or her income by twenty-five percent (25%) or more, or fails to notify the Secretary of the Department of Finance and Administration of any change or correction by the Internal Revenue Service in the taxpayer's taxable income shall not be entitled to file an amended return or verified claim for credit or refund after the expiration of three (3) years from the date the original return or notification of change was originally due.
    5. No person shall be prosecuted, tried, or punished for any of the various criminal offenses arising under the provisions of any state tax law unless the indictment of the person is instituted within six (6) years after the commission of the offense.
      1. In the case of an individual, the running of the periods specified for filing an amended return or verified claim for credit or refund shall be suspended during any period of the individual's life in which the individual is financially disabled.
        1. An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.
        2. An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require.
      2. An individual shall not be treated as financially disabled during any period that the individual's spouse or any other person is authorized to act on behalf of the individual in financial matters.
      1. The limitation periods in subsection (i) of this section to file a claim for credit or refund of an overpayment of state tax do not apply to a taxpayer who is a veteran if the:
        1. Overpayment of state tax claimed resulted from the:
          1. Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407, as in effect on January 1, 2009; or
          2. Waiver of retired pay under 38 U.S.C. § 5305, as in effect on January 1, 2009; and
        2. Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104, as in effect on January 1, 2009.
      2. An amended return or verified claim for credit or refund of an overpayment of state tax described in subdivision (l)(1) of this section shall be filed by the taxpayer within one (1) year of the date of the determination described in subdivision (l)(1)(B) of this section or February 25, 2009, whichever occurs later.
      3. A credit or refund for an overpayment of state tax shall not be allowed under this subsection for any tax year which began before January 1, 2001.
      1. Except in the case of deficiencies that are determined to be due to fraud, if the Secretary of the Department of Finance and Administration assesses a tax or begins an action in court for the collection of a tax under subsection (e) or subsection (f) of this section for a time period in excess of the time periods provided in subsection (a) of this section, the taxpayer may file a verified claim for a credit or refund of an overpayment of state tax for the additional time period open for assessment by the Secretary of the Department of Finance and Administration at any time before the time of collection of the assessment.
      2. However, the taxpayer shall not receive a credit or refund of any amount in excess of the assessment under this subsection.
      3. The taxpayer's ability to file a verified claim under this subsection is in addition to and not in limitation of the other provisions for filing claims in this section.
      1. Except as provided in subdivision (n)(2) of this section, an assessment to recover an erroneously paid refund shall not be made after the expiration of three (3) years from the date of the refund warrant.
      2. However, an assessment may be made at any time to recover an erroneously paid refund that was paid as a result of fraud or misrepresentation by the taxpayer.
      1. The Secretary of the Department of Finance and Administration shall give a taxpayer notice of any assessment, demand, decision, or hearing before the secretary which directly involves that taxpayer.
        1. All notices required to be given by the secretary to a taxpayer shall be either served by personal service or sent by regular mail to the taxpayer's last address on record with the particular tax section of the Revenue Division of the Department of Finance and Administration in question.
        2. Service of the notice by mail is presumptively complete upon mailing, and the secretary may take any action permitted by any state tax law.
      2. All notices of final assessment under § 26-18-401 shall be sent by regular mail.
      1. When giving notice to the secretary, the taxpayer shall give notice either by mail or by personal service on the secretary.
      2. The notice the taxpayer gives shall be effective when postmarked or, in case of personal service, when so served.
    1. By written agreement, the secretary and any taxpayer may provide for any other reasonable means of giving notice.
    2. All notices shall be in writing.
    1. The Secretary of the Department of Finance and Administration may accept payment of any state or local tax or fee by credit card when he or she determines that credit card payments are administratively feasible.
    2. The secretary may enter into contracts with credit card companies and may pay fees normally charged by those companies for allowing the use of their credit cards as authorized by this section.
      1. The Secretary of the Department of Finance and Administration may promote the benefits of and encourage the use of electronic tax administration programs, as they become available, through the use of mass communications and other means.
      2. It is the policy of the Department of Finance and Administration that:
        1. Paperless filing should be the preferred and most convenient means of filing state tax and information returns; and
        2. The department should cooperate with and encourage the private sector by encouraging competition to increase electronic filing of such returns.
    1. The secretary shall establish a plan to eliminate barriers, provide incentives, and use competitive market forces to increase electronic filing gradually over the next ten (10) years while maintaining existing processing times for paper returns.
    1. The Secretary of the Department of Finance and Administration shall develop procedures for the acceptance of signatures on state tax returns or reports in digital or other electronic form.
    2. Until such time as such procedures are in place, the secretary may:
      1. Waive the requirement of a signature for a particular type or class of return, declaration, statement, or other document required or permitted to be made in writing under state tax laws and rules; or
      2. Provide for alternative methods of signing or subscribing a particular type or class of return, declaration, statement, or other document required or permitted to be made in writing under state tax laws and rules.
    1. When the state seeks to impose a tax under the terms of a state tax law, then the statute imposing the tax shall be strictly construed in limitation of the imposition of the tax.
    2. When a taxpayer claims to be entitled to a tax exemption, deduction, or credit under the terms of a state tax law, then the statute providing the tax exemption, deduction, or credit shall be strictly construed in limitation of the exemption, deduction, or credit.
    3. The burden of proof applied to matters of fact and evidence, whether placed on the taxpayer or the state, in controversies regarding the application of a state tax law shall be by preponderance of the evidence.
    4. When the meaning of a state tax law is in controversy, the burden of establishing the proper construction of the statute shall be on the party claiming application of the tax or benefit of the tax exemption, deduction, or credit.
    5. Words used in statutes imposing a tax and in statutes providing for a tax exemption, deduction, or credit shall be given their plain and ordinary meaning, not their narrowest possible meaning.
      1. Statutes imposing a tax and statutes providing a tax exemption, deduction, or credit shall be fairly and reasonably construed, taking into consideration the purpose and spirit of the tax, exemption, deduction, or credit and the public policy at the time the statute was passed.
      2. If after taking this section and other applicable rules of statutory construction into account, a well-founded doubt exists with respect to the meaning of a statute imposing a tax or providing a tax exemption, deduction, or credit, the rule of strict construction shall require that the doubt be resolved against the tax, exemption, deduction, or credit.
    6. This section is remedial and procedural and shall apply to all actions on and after October 1, 2015.
      1. A written legal opinion issued by the Secretary of the Department of Finance and Administration on or after January 1, 2016, shall be posted on the Arkansas.gov website.
      2. Any identifying facts and information that the secretary determines to be confidential in nature concerning taxpayers or other individuals or entities shall be redacted from an opinion posted under this section.
      3. The secretary may post a synopsis that describes the subject matter, facts, and guidance provided in an opinion instead of posting the complete redacted opinion if a copy of the redacted opinion is made available upon request.
      1. A final determination of a hearing officer or the secretary issued under § 26-18-405 on or after January 1, 2016, shall be posted on the Arkansas.gov website.
      2. Any identifying facts and information that the secretary determines to be confidential in nature concerning taxpayers or other individuals or entities shall be redacted from a final determination posted under this section.
      3. The secretary may post a synopsis that fully describes the subject matter, facts, and conclusions reached by the hearing officer or secretary instead of posting the complete determination.
      4. An administrative appeal that is settled or withdrawn from consideration before a final determination is made shall not be posted under this section.
      1. The Secretary of the Department of Finance and Administration shall make the inquiries, determinations, and assessments of all state taxes, including interest, additions to taxes, and assessable penalties, imposed by all state tax laws.
      2. The proposed assessment shall be made by recording the liability of the taxpayer in the office of the secretary in accordance with rules prescribed by the secretary.
      3. Upon request of the taxpayer, the secretary shall furnish the taxpayer a copy of the record of the assessment.
      1. The secretary shall collect all taxes imposed by any state tax law.
          1. The secretary shall issue a final assessment to each taxpayer liable for the unpaid tax.
          2. The final assessment shall state the amount of the assessment and demand payment within ten (10) days of the assessment.
          3. The final assessment shall not be issued before the expiration of time for the taxpayer to request an administrative hearing under § 26-18-404.
        1. If the taxpayer has requested administrative relief under § 26-18-404 the final assessment shall be issued according to § 26-18-405.
          1. If the taxpayer has paid the assessment before the time for the issuance of the final assessment, no final assessment shall be issued.
          2. The taxpayer may seek to recover the payment of the assessment only if § 26-18-403 or § 26-18-406 applies.
      2. Upon receipt of the final assessment from the secretary, the person liable for the tax shall pay the stated amount including any interest, additions to tax, and assessable penalties at the place and time stated in the final assessment.
    1. Regardless of the date on which a return or payment is due or a taxable period of a taxpayer closes, the Secretary of the Department of Finance and Administration shall declare the taxable period of any state tax terminated for that person and shall issue a jeopardy assessment and assess the tax from any information in his or her possession, notify the taxpayer, and demand immediate payment if the secretary believes that:
      1. The tax liability of any person who has a bond on file with the secretary to indemnify the state for the payment of any state tax is in excess of the amount of the bond;
      2. A taxpayer intends to depart from the state, to remove his or her property therefrom, or to conceal himself or herself or any of his or her property therein;
      3. A taxpayer intends to discontinue business without making adequate provisions for payment of all state tax; or
      4. A taxpayer intends to do any other act tending to prejudice, jeopardize, or render wholly or partially ineffectual proceedings to compute, assess, or collect any state tax.
      1. Within five (5) days after the date on which a notice and demand for payment is made under subsection (a) of this section, the secretary shall provide the taxpayer with a written statement of the information upon which the secretary relies in making such assessment.
      2. If the taxpayer fails or refuses to pay the tax upon demand of the secretary or requests a hearing before the secretary within five (5) business days after the day the taxpayer is furnished the written statement described in subdivision (b)(1) of this section, the tax shall become delinquent and the secretary shall proceed to issue a certificate of indebtedness.
    2. When the taxpayer requests a hearing, the secretary shall hold the hearing within five (5) business days of receipt of the request. After a hearing, the secretary shall determine whether the making of the assessment under subsection (a) of this section is reasonable under the circumstances and shall render his or her decision. The taxpayer has three (3) days after the receipt of the secretary's decision either to pay the tax and applicable penalty and interest due or to protest the decision of the secretary as provided by § 26-18-406(a) prior to the secretary's issuing a certificate of indebtedness.
    3. Whenever the secretary issues a jeopardy assessment, he or she shall have the burden of proving the reasonableness of the assessment.
      1. If any taxpayer fails to file any return as required by any state tax law, the Secretary of the Department of Finance and Administration from any information in his or her possession or obtainable by him or her, may determine the correct amount of tax for the taxable period. If a return has been filed, the secretary shall examine the return and make any audit or investigation that he or she considers necessary.
        1. When a return has not been filed and the secretary determines that there is a tax due for the taxable period or when a return has been filed and the secretary determines that the tax disclosed by the return is less than the tax disclosed by his or her examination, the secretary shall propose the assessment of additional tax plus penalties, as the case may be, and shall give notice of the proposed assessment to the taxpayer.
        2. The notice required under subdivision (a)(2)(A) of this section shall:
          1. Explain the basis for the proposed assessment;
            1. State that a final assessment, as provided by § 26-18-401, will be made if the taxpayer does not protest the proposed assessment as provided by § 26-18-404.
            2. The taxpayer does not have to protest the proposed assessment to later be entitled to exercise the right to seek a judicial review of the assessment under § 26-18-406; and
          2. Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed assessment, from the Department of Finance and Administration.
    1. Any demand for additional payment of a state tax which is made as the result of a verification of a mathematical error on the return shall not be deemed to be a proposed assessment under the provisions of this section and shall not be subject to the hearing or appeal provisions of this chapter.
      1. An erroneously paid refund is a tax deficiency and is subject to assessment under this section.
        1. When an erroneously paid refund is issued to a taxpayer, the secretary shall issue a notice of proposed assessment for the amount of the erroneously paid refund, plus interest and any penalty authorized under this chapter.
        2. The notice of proposed assessment to recover an erroneously paid refund shall explain the basis for the proposed assessment and shall inform the taxpayer that a final assessment under § 26-18-401 shall be made if the taxpayer fails to protest the assessment under § 26-18-404.
      2. Sections 26-18-404 — 26-18-406 and 26-18-701 apply to assessments of erroneously paid refunds.
      3. Interest and penalties imposed on a tax deficiency are subject to waiver or abatement in accordance with the procedure established in § 26-18-705(b) if the tax deficiency arose from an error by the department that resulted in the issuance of an erroneously paid refund.
    1. Any taxpayer who wishes to seek administrative relief from any proposed assessment of taxes or from a denial of a claim for refund by the Secretary of the Department of Finance and Administration shall follow the procedure provided by this section.
      1. A taxpayer may at his or her option either request the secretary to consider his or her request for relief solely upon written documents furnished by the taxpayer or upon the written documents and any evidence produced by the taxpayer at a hearing.
      2. A taxpayer who requests the secretary to render his or her decision based on written documents is not entitled by law to any other administrative hearing prior to the secretary's rendering of his or her decision and, if necessary, the issuing of a final assessment and demand for payment or issuing of a certificate of indebtedness.
      1. Within sixty (60) days after service of notice of the proposed assessment or denial of a claim for refund, the taxpayer may file with the secretary a written protest under oath, signed by the taxpayer or the taxpayer's authorized agent, setting forth the taxpayer's reasons for opposing the proposed assessment or the denial of a claim for refund.
      2. No administrative relief will be available to a taxpayer who fails to protest or to a taxpayer who fails to request an extension of time to protest a proposed assessment of tax or denial of a claim for refund within the sixty (60) days following the service of notice of the proposed assessment or denial of a claim for refund.
    2. The secretary may, in his or her discretion, extend the time for filing a protest for any period of time not to exceed an additional ninety-day period.
      1. The Secretary of the Department of Finance and Administration shall appoint a hearing officer to review all written protests submitted by taxpayers, hold all hearings, and make written findings as to the applicability of the proposed assessment or the denial of the claim for refund.
      2. Decisions of the hearing officer shall be final unless revised by the secretary.
      3. The hearings on written and oral protests and determinations made by the hearing officer shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
    1. The secretary may appoint one (1) or more hearing officers, but the persons occupying these appointments shall not contemporaneously with the holding of these appointments have any other administrative duties within the Revenue Division of the Department of Finance and Administration.
    2. The actual hearing on the written protest shall be held in any city in which the Revenue Division of the Department of Finance and Administration maintains a field audit district office or in such other city as the secretary shall, in his or her discretion, designate.
        1. All written protests filed with the secretary shall be delivered promptly to the hearing officer.
        2. The hearing officer shall set the time and place for the hearing on a written protest and shall give the taxpayer reasonable notice of the hearing.
        3. If it is not possible for the hearing officer to hold a hearing and issue a decision on a protest of a proposed assessment within one hundred eighty (180) days after the taxpayer files a written protest for reasons that the hearing officer determines are beyond the taxpayer's control, the secretary shall waive the interest for the period from the time the written protest is filed until the final assessment is issued.
      1. At the hearing, the taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.
      2. After the hearing, the hearing officer shall render his or her decision in writing and shall serve copies upon both the taxpayer and the section or division of the Department of Finance and Administration which proposed the assessment or the denial of the claim for refund.
          1. If the proposed assessment or denial of a claim for refund is sustained, in whole or part, the taxpayer or legal counsel for the secretary may request in writing, within twenty (20) days of the mailing of the decision, that the secretary revise the decision of the hearing officer.
          2. No request for revision will be considered unless it is received by the secretary within twenty (20) days of the mailing of the hearing decision.
          3. Either the taxpayer or legal counsel for the secretary shall provide a copy of any written request for revision to the other.
          4. The secretary may hold the supplemental proceedings on any request for revision and shall issue a decision on the request within sixty (60) days of the receipt of the request for revision.
        1. If the secretary refuses to make a revision or if the taxpayer or legal counsel for the secretary does not make a request for revision, then the secretary shall send either:
          1. A final assessment to the taxpayer, as provided by § 26-18-401, that is made upon the final determination of the hearing officer that sustained a proposed assessment of tax; or
          2. A notice in writing to both the taxpayer and legal counsel for the secretary, if a revision was requested, of his or her decision not to revise a decision that resulted in no tax due, including the denial of a claim for refund.
          1. If the secretary revises the decision of the hearing officer, the secretary shall send the final decision of the secretary to the taxpayer and to the legal counsel for the secretary.
          2. A notice of final assessment shall be made upon the decision of the secretary if the secretary's decision sustained a proposed assessment of tax.
          3. No further notice will be issued for a final decision of the secretary that results in no tax due, including the denial of a claim for refund.
        2. A taxpayer may not request revision of a decision issued by the secretary under this subdivision (d)(4).
    3. A taxpayer may seek relief from the final decision of the hearing officer or the secretary on a final assessment of a tax deficiency or a notice of denial of a claim for refund by following the procedure set forth in § 26-18-406.
      1. In addition to the hearing procedures set out in subsections (a)-(e) of this section, the secretary may hold administrative hearings by telephone, video conference, or other electronic means if the secretary determines that conducting the hearing in such a manner:
        1. Is in the best interest of the taxpayer and the department;
        2. Provides the same level of legal protection as provided in an in-person hearing or a hearing on written documents, including without limitation adequate due process;
        3. Is not unduly expensive for the taxpayer or the department; and
        4. Adequately protects the confidentiality of the taxpayer's information.
      2. The secretary may contract with third parties for all services necessary to conduct hearings by telephone, video, or other electronic means.
      3. Any person who enters into a contract with the secretary to provide services necessary to conduct hearings by telephone, video, or other electronic means shall be subject to the requirements of this chapter providing for the confidentiality of all taxpayer records.
    1. After the issuance and service on the taxpayer of the final assessment of a deficiency in tax that is not protested by the taxpayer under § 26-18-403 or a final determination of the hearing officer or the Secretary of the Department of Finance and Administration under § 26-18-405, a taxpayer may seek judicial relief from the final assessment or determination by:
        1. Filing suit for judicial relief from the final assessment or determination within one hundred eighty (180) days of the date of the final assessment or determination.
        2. A taxpayer filing suit under this subdivision (a)(1) shall not be required to pay the state tax, penalties, and interest due before filing suit;
      1. Paying the entire amount of state tax due within one (1) year of the date of the final assessment or determination and filing suit to recover that amount within one (1) year of the date of payment; or
      2. Filing suit to recover assessed tax, penalty, and interest paid prior to the time for issuance of the final assessment within one (1) year of the date of the final determination of the hearing officer or the secretary under § 26-18-405.
    2. A taxpayer may seek judicial relief from a final determination denying a claim for refund by filing suit to recover the amount claimed within one (1) year from the mailing of the denial of the secretary under § 26-18-507, or a final determination of the hearing officer or the secretary under § 26-18-405, whichever is later.
      1. Jurisdiction for a suit to contest a final assessment or determination of the secretary under this section shall be in the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
      2. An appeal will lie from the circuit court to the Supreme Court, as in other cases provided by law.
      3. A presumption of correctness or weight of authority shall not attach to a final assessment or determination of the secretary in a trial de novo or an appeal under this section.
      1. The methods provided in this section shall be the sole alternative methods for seeking relief from a written decision of the secretary establishing a deficiency in tax or disallowing a claim for refund.
      2. An injunction shall not issue to stay proceedings for assessment or collection of taxes levied under state tax law.
      1. In a court proceeding under this section, the:
        1. Prevailing party may be awarded a judgment for court costs; and
        2. Taxpayer may be awarded reasonable attorney's fees if the:
          1. Secretary revised a decision of the hearing officer in favor of the taxpayer under § 26-18-405;
          2. Taxpayer is the prevailing party in an action for judicial relief from the determination of the secretary under this section; and
          3. Court finds that the secretary's revision was without a reasonable basis in law and fact.
      2. A judgment of court costs entered by the court in favor of either party or of attorney's fees awarded in favor of the taxpayer shall be treated, for purposes of this chapter, in the same manner as an overpayment or deficiency of tax, except that interest or penalty shall not be allowed or assessed with respect to a judgment for court costs or attorney's fees.
    3. If a taxpayer pays the tax, penalty, and interest assessed under § 26-18-403 and does not request administrative relief according to § 26-18-404, then:
      1. The taxpayer may seek judicial relief from the assessment only if the taxpayer files suit in circuit court within one (1) year from the date of payment of the assessment; and
      2. The provisions of § 26-18-507 shall not apply to the payments.
    4. The Arkansas Rules of Civil Procedure and § 16-56-126 concerning nonsuit and commencement of new actions apply to appeals under this section.
    1. The liability for the payment of taxes imposed under any state tax law is on the taxpayer or person as identified by the particular state tax law.
    2. Any person required to collect, truthfully account for, and pay over any state tax who willfully fails to collect the tax, or truthfully account and pay over the tax, or willfully attempts in any manner to evade or defeat any tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
    3. As used in this section, “person” includes an officer, director, or employee of a corporation, a partner or employee of a partnership, or a member, manager, or employee of a limited liability company, who, as an officer, director, employee, partner, member, or manager is under a duty to perform the act in respect to which the violation occurs.
    4. This section shall not apply to the payment of corporate income taxes.
    1. The liability, at law or in equity, of the transferee of property of any person liable for any tax imposed by a law of the State of Arkansas shall be the same as that of the transferor and may be assessed and collected from the transferee in the same manner and subject to the same provisions as the transferor.
    2. The period of limitation for assessment of any liability of a transferee or a fiduciary shall be within one (1) year after the expiration of the period of limitation for assessment against the transferor.
    3. As used in this section, unless the context otherwise requires, “transferee” includes the donee, heir, legatee, devisee, and distributee and, with respect to estate tax, also includes any person who is personally liable for any part of the tax.
    1. When a return of tax is required to be filed, the person required to make the return shall, without assessment or notice and demand from the Secretary of the Department of Finance and Administration, pay the tax to the secretary at the time and place fixed for filing the return, determined without regard to any extension of time for filing the return.
    2. All remittances required to be paid under any state tax law shall be made payable to the Department of Finance and Administration by bank draft, check, cashier's check, money order, or money. The secretary shall issue a receipt, if requested, to the taxpayer for every cash payment. No remittance, other than cash, is a final discharge of liability due the secretary until it has been paid in cash.
    1. No final account of any fiduciary shall be allowed by a probate division of circuit court of the state unless the account shows, and the probate division of circuit court finds, that all taxes imposed by any state tax law which are due have been paid and that all taxes which may become due are secured by bond, security deposit, or otherwise. To the extent that a tax certificate of the Secretary of the Department of Finance and Administration shows payment, it shall be conclusive.
    2. For the purpose of facilitating the settlement and distribution of the estates held by fiduciaries, the secretary may agree upon the amount of taxes due, or to become due, from the fiduciaries under the provisions of any state tax law, and payment in accordance with the agreement shall be in full satisfaction of all taxes to which the agreement relates.
      1. Upon written request and for good cause, the Secretary of the Department of Finance and Administration may grant a reasonable extension of time to file any return required under any state tax law.
      2. The secretary shall keep a record of every extension granted with the reason the extension was granted.
      3. Except for a corporation income tax return as provided in § 26-51-807(c), the time for filing any return shall not be extended more than one hundred eighty (180) days.
      4. The secretary may promulgate rules to grant automatic extensions of time to file income tax returns and information returns without the taxpayer being required to submit a written application for the extension of time to file.
    1. When an extension of time to file is granted, the taxpayer may file a tentative return on or before the original due date showing the estimated amount of tax due for the period covered by the return and may pay the estimated tax or the first installment at the same time.
      1. No interest shall be accrued or assessed against any sums paid on or before the original due date.
      2. Any state tax not paid when due because the secretary granted an extension of time for payment shall bear interest at the rate of ten percent (10%) per annum from the date originally due until paid.
      1. For purposes of granting an extension of time for filing a return under this section, “good cause” includes, but is not limited to:
        1. An instance in which the taxpayer is determined for federal tax purposes to be affected by a presidentially declared disaster under the provisions of 26 U.S.C. § 7508A, as in effect on January 1, 1999; and
        2. An instance in which the taxpayer is determined to be affected by a disaster emergency as declared by the Governor under § 12-75-107.
      2. In the event that an extension of time for filing a return is granted to a taxpayer affected by a presidentially declared disaster or a disaster emergency declared by the Governor, no interest or penalty shall accrue for the extension period granted by the secretary.
    1. It is the duty of every taxpayer required to make a return of any tax due under any state tax law to keep and preserve suitable records as are necessary to determine the amount of tax due or to prove the accuracy of any return.
    2. Unless otherwise provided by law, the taxpayer is required to keep and maintain all records within the State of Arkansas and for at least six (6) years after a return was filed. These records are subject to examination by the Secretary of the Department of Finance and Administration at any reasonable time.
    3. When the records required by this section are kept outside the State of Arkansas in the usual course of business, they shall be produced within the state within fifteen (15) days after receipt of demand by the secretary. If the taxpayer determines it is impractical, then the taxpayer may request, and the secretary may grant, permission to have the records audited wherever they may be.
    4. When a taxpayer fails to preserve and maintain the records required by any state tax law, the secretary may, in his or her discretion, make an estimated assessment based upon information available to him or her as to the amount of tax due by the taxpayer. The burden of proof of refuting this estimated assessment is upon the taxpayer.
      1. Any taxpayer who has paid any state tax to the State of Arkansas in excess of the state taxes lawfully due, subject to the requirements of this chapter, shall be refunded the overpayment of the state tax determined by the Secretary of the Department of Finance and Administration to be erroneously paid upon the filing of an amended return or a verified claim for refund, subject to subsection (e) of this section.
      2. This subsection does not include an action based on Arkansas Constitution, Article 16, § 13.
    1. The claim shall specify:
      1. The name of the taxpayer;
      2. The time when and the period for which the state tax was paid;
      3. The nature and kind of state tax paid;
      4. The amount of the state tax that the taxpayer claimed was erroneously paid;
      5. The grounds upon which a refund is claimed; and
      6. Any other information relative to the payment as may be prescribed by the secretary.
    2. The secretary shall determine what amount of refund, if any, is due as soon as practicable after a claim has been filed, but in no event shall the taxpayer be entitled to file a suit for refund under § 26-18-406 until at least six (6) months have elapsed from the date of the filing of the claim for refund or the secretary has issued a notice of denial of a claim for refund.
    3. Notwithstanding any provisions of the law to the contrary, a taxpayer who acts only as an agent of the state in the collection of any state tax shall be entitled to claim a credit or refund of the state tax only if the taxpayer establishes that he or she has:
      1. Borne the state tax in question;
      2. Repaid the amount of the state tax to the person from whom he or she collected it; or
      3. Obtained the consent of the person to the allowance of the credit or refund.
        1. The secretary shall make a written determination and give notice to the taxpayer concerning whether or not a refund is due.
          1. If a refund is due, the secretary shall certify that the claim is to be paid to the taxpayer as provided by law or credited against state taxes due or to become due.
            1. If the secretary determines that the taxpayer entitled to the refund has an outstanding state tax delinquency for which a certificate of indebtedness has been filed, the secretary shall apply the refund due as payment against the outstanding state tax delinquency. If the amount of the state tax refund exceeds the amount of the outstanding state tax delinquency, the excess amount shall be paid to the taxpayer in accordance with subdivision (e)(1)(B)(i) of this section.
            2. The secretary shall notify each taxpayer in writing whose refund results from the filing of a joint return that the joint refund will be applied against the outstanding state tax delinquency.
            3. A taxpayer who claims that only the taxpayer's spouse owes the delinquent state tax debt may seek administrative relief by filing a written protest under oath within thirty (30) days after the notice under subdivision (e)(1)(B)(ii)(b) is received that includes information regarding why the taxpayer does not owe the delinquent state tax debt and either requests a hearing in person or based upon the information submitted with the protest.
            4. A hearing on a written protest made under this subdivision (e)(1)(B)(ii) and any judicial relief requested following the administrative hearing process shall be provided in accordance with the applicable provisions of §§ 26-18-405 and 26-18-406.
        1. If the secretary's determination is to disallow the claim for refund, in whole or in part, then the secretary shall immediately issue a written decision giving notice to the taxpayer of the denial of the claim for refund.
        2. The taxpayer may seek administrative review and relief from the secretary's decision to deny a claim for refund by protesting as provided in §§ 26-18-404 and 26-18-405.
      1. The taxpayer may seek judicial relief under the provisions of § 26-18-406 from:
        1. A notice of a denial of a claim for refund issued by the secretary; or
        2. The secretary's failure to issue a written decision after the claim for refund has been filed for six (6) months.
      1. This section shall not apply to state taxes paid as a result of an audit or proposed assessment.
      2. State taxes paid as a result of an audit or proposed assessment may not be recovered unless § 26-18-406 applies.
      1. The Secretary of the Department of Finance and Administration may cancel or refuse to issue, extend, or reinstate a license, permit, or registration under any state tax law to any person or taxpayer who has within the last three (3) years failed to comply with a state law concerning the timely reporting and payment of a state tax administered by the secretary or failed to observe or fulfill the conditions upon which the license or permit was issued.
      2. A failure to pay assessed interest and penalties on a delinquent state tax is grounds for a decision to cancel or refuse to issue, extend, or reinstate a license, permit, or registration under this subsection.
      1. When the secretary determines, in his or her sole discretion, that an emergency situation exists and that the public welfare and safety are endangered, he or she may issue an order temporarily suspending a license, permit, or registration pending a hearing before him or her on the subject of the cancellation of the license, permit, or registration.
      2. The secretary shall give notice of the temporary suspension at the same time that he or she gives notice of his or her intention to cancel or to refuse to issue, extend, or reinstate any license, permit, or duplicate copy thereof, as provided by this section.
      3. The secretary shall as soon as practicable, but in any event within three (3) days after the request of the taxpayer, hold a hearing on whether the temporary suspension should be made permanent.
      4. The temporary suspension shall be made permanent without a hearing unless the taxpayer requests a hearing within twenty (20) days of receipt of notice of the temporary suspension.
    1. Except as set out in subsection (b) of this section, before the secretary may cancel or refuse to issue, extend, or reinstate any license, permit, or registration, he or she shall give notice of his or her proposed action, and the owner or applicant shall have twenty (20) days after receipt of the secretary's decision to request a hearing.
      1. When a license, permit, or registration is cancelled by the secretary, all accrued fees, taxes, and penalties, even though not due and payable at the time of cancellation under the state tax law imposing and levying the tax, shall become due concurrently with the cancellation of the license, permit, or registration.
      2. The licensee or permittee shall within five (5) business days of cancellation make a report to the secretary covering the period not previously covered by reports filed by that person and ending with the date of the cancellation and shall pay all accrued fees, taxes, and penalties at the time the report is made.
      3. Violation of this subsection is a Class C misdemeanor.
      1. The affected taxpayer may seek relief from the decision of the secretary cancelling a license, permit, or registration by requesting a hearing, pursuant to subsections (b) and (c) of this section, by filing a written protest of the action with the hearing officer appointed by the secretary, pursuant to § 26-18-405, and the hearing officer shall hold all hearings requested pursuant to this section.
      2. The hearing officer shall issue a written decision on all hearings which shall be final unless revised by the secretary.
      3. The hearings and determinations of the hearing officer shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
        1. A taxpayer may request a revision by the secretary of the hearing officer's determination which is adverse to him or her within twenty (20) days of the date of the mailing of the hearing officer's decision.
        2. If the secretary refuses to make a revision, or if the taxpayer does not request a revision, then the affected taxpayer may seek relief from the hearing officer's decision or the final revision determination by the secretary by following the method provided in § 26-18-602.
    2. Violations of this section shall be punished as provided in § 26-18-206. The secretary may seek to enjoin any violation of any state tax law the secretary is charged to enforce.
      1. The affected taxpayer may seek relief from the decision of the Secretary of the Department of Finance and Administration, rendered after a hearing, cancelling a license, permit, or registration.
      2. The taxpayer's petition seeking an order to stay the effect of the secretary's decision shall be filed within thirty (30) days after receipt of notice of that decision by the taxpayer with the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
      1. Relief from the decision of the secretary cancelling a license, permit, or registration may be taken only as provided in this section.
        1. To stay the effect of the secretary's decision, the person or taxpayer shall file a bond not to exceed twenty-five thousand dollars ($25,000) with and in an amount fixed by the secretary, payable to the State of Arkansas.
        2. The bond shall be conditioned upon:
          1. The faithful and diligent prosecution of the appeal by the taxpayer to a final determination; and
          2. The immediate compliance of the taxpayer with the secretary's decision if the secretary's decision is not enjoined by the circuit court or upon appeal is upheld by the Supreme Court.
      2. The secretary may, in his or her discretion, refuse to stay the effect of his or her decision and permit a bond to be posted when he or she determines in his or her sole discretion that the public safety and welfare would be endangered by the stay.
    1. The venue for all actions seeking relief from a decision of the secretary concerning the cancellation of or refusal of the issuance of a license or permit shall be the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business.
          1. If a taxpayer does not timely and properly pursue his or her remedies seeking relief from a decision of the Secretary of the Department of Finance and Administration and a final assessment is made against the taxpayer, or if the taxpayer fails to pay the deficiency assessed upon notice and demand, then the secretary shall, as soon as practicable thereafter, issue to the circuit clerk of any county of the state a certificate of indebtedness certifying that the person named in the certificate of indebtedness is indebted to the state for the amount of the tax established by the secretary as due.
            1. The secretary may publish an electronic copy of a certificate of indebtedness issued under subdivision (a)(1)(A)(i) of this section on the official website maintained by the secretary.
            2. The secretary shall remove an electronic copy of a certificate of indebtedness published under subdivision (a)(1)(A)(ii)(a) of this section upon:
              1. Satisfaction of the underlying indebtedness that is the subject of the certificate of indebtedness; and
              2. The issuance of a release of the certificate of indebtedness on the records of the circuit clerk.
          1. If a taxpayer has a delinquent tax liability to the State of Arkansas of less than one thousand dollars ($1,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments.
          2. The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that it is in the best interest of the state.
          1. If a taxpayer has a total delinquent individual income tax liability to the State of Arkansas of less than two thousand dollars ($2,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments if:
            1. The installment agreement is for a period of twelve (12) months or less; and
            2. The installments are to be paid electronically.
          2. The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that the issuance of a certificate of indebtedness is not in the best interest of the state.
      1. The circuit clerk shall enter immediately upon the circuit court judgment docket:
        1. The name of the delinquent taxpayer;
        2. The amount certified as being due;
        3. The name of the tax; and
        4. The date of entry upon the judgment docket.
          1. The entry of the certificate of indebtedness shall have the same force and effect as the entry of a judgment rendered by the circuit court.
          2. This entry shall constitute the state's lien upon the title of any real and personal property of the taxpayer in the county where the certificate of indebtedness is recorded.
        1. This lien is:
          1. In addition to any other lien existing in favor of the state to secure payment of taxes, applicable interest, penalties, and costs, including any costs the circuit clerk is entitled to receive as provided by law for either the filing or the release of this lien; and
          2. Superior to:
            1. Other liens of any type or character attaching to the property after the date of entry of the certificate of indebtedness on the judgment docket; and
            2. All claims of unsecured creditors.
            1. The certificate of indebtedness authorized by this subsection shall continue in force for ten (10) years from the date of recording and shall automatically expire after the ten-year period has run.
            2. An action on the lien on the certificate of indebtedness shall be commenced within ten (10) years after the date of recording of the certificate, and not afterward.
            3. The secretary shall not be required to file a release on a lien which has expired, and the provisions of § 26-18-808 dealing with failure to release liens are not applicable to this section.
            4. The provisions of this subsection are applicable to both liens already on file and all future filings of liens.
          1. A bankruptcy filing by a taxpayer tolls the ten-year period for certificates of indebtedness under subdivision (a)(3)(C)(i) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.
          2. The secretary may file another lien to secure a tax delinquency if:
            1. The secretary is required to release an inadvertently filed lien because the filing of a bankruptcy case has stayed collection activity; and
            2. There is no subsequent discharge of the tax delinquency.
      2. The lien authorized by this section arises at the time the secretary makes the assessment and continues until the taxpayer satisfies the assessment or the lien becomes unenforceable by operation of law.
      1. After entry of the certificate of indebtedness, the circuit clerk shall issue a writ of execution directed to the secretary, authorizing the secretary to levy upon and against all real and personal property of the taxpayer.
      2. The secretary shall have all remedies and may take all proceedings for the collection of the tax which may be taken for the recovery of a judgment at law.
      3. The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state, except the secretary shall act in the place of the county sheriffs.
      4. The secretary shall have this authority for all liens either presently filed or filed after the passage of this act.
      1. Nothing in this chapter shall preclude the secretary from resorting to any other means provided by law for collecting delinquent taxes.
      2. The issuance of a certificate of indebtedness, entry by the circuit clerk, and levy of execution as provided in this section shall not constitute an election of remedies with respect to the collection of the tax.
      3. The taxes, interest, penalties, and fees, including any costs the circuit clerk is entitled to receive as provided by law in these matters, imposed or levied by any state tax law, when due, may be collected in the same way as a personal debt of the taxpayer.
      4. In the name of the state, the secretary may sue to the same effect and extent as for the enforcement of a right of action for debt.
      5. All provisional remedies available in these actions are available to the State of Arkansas in the enforcement of the payment of any state tax.
        1. In addition to the remedies provided in subsections (b) and (c) of this section, the secretary may direct the circuit clerk to issue a writ of execution directed to the county sheriff of any county authorizing the county sheriff to levy upon and against all real and personal property of the taxpayer.
        2. The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state.
        1. The circuit clerk and county sheriff shall be entitled to receive the same fees provided by law in these matters.
        2. These fees shall be collected from the taxpayer by either the secretary or the county sheriff in addition to the tax, penalties, and interest included in the certificate of indebtedness.
        3. If the county sheriff is unable after diligent effort to collect the tax, interest, penalties, and costs, the secretary may pay such fees as are properly shown to be due to the circuit clerk and county sheriff.
    1. The secretary may contract with persons inside or outside the state to help the secretary collect delinquencies of resident or nonresident taxpayers.
    1. When a return required under any state tax law has not been filed or does not furnish all the information required by the Secretary of the Department of Finance and Administration or when the taxes imposed by any state tax law have not been paid or when any required license or permit has not been secured, the secretary, in the name of the State of Arkansas, may institute any necessary action or proceeding in the Pulaski County Circuit Court to enjoin the person or taxpayer from continuing operations until the report or return has been filed, required licenses or permits secured, or taxes paid as required.
    2. The injunction shall be issued without a bond being required from the state.
    1. The Secretary of the Department of Finance and Administration may enter into an agreement to compound, settle, or compromise any controversy relating to a state tax or any admitted or established tax liability as to any tax collectible under any state law when:
      1. The controversy is over the amount of tax due; or
      2. The inability to pay results from the insolvency of the taxpayer.
    2. The secretary may waive or remit the interest or penalty, or any portion of the interest or penalty, ordinarily accruing because of a taxpayer's failure to pay a state tax within the statutory period allowed for its payment:
      1. If the taxpayer's failure to pay the tax is satisfactorily explained to the secretary;
      2. If the failure results from a mistake by the taxpayer of either the law or the facts subjecting him or her to such tax; or
      3. If the inability to pay the interest or penalty results from the insolvency or bankruptcy of the taxpayer.
      1. In settling or compromising any controversy relating to the liability of a person for any state tax for any taxable period, the secretary may enter into a written closing agreement concerning the liability.
      2. When the closing agreement is signed by the secretary, it shall be final and conclusive, and except upon a showing of fraud or misrepresentation of a material fact, no additional assessment or collection shall be made by the secretary, and the taxpayer shall not institute any judicial proceeding to recover such liabilities as agreed to in the closing agreement.
    3. The secretary shall promulgate rules establishing guidelines for determining whether a proposed offer in compromise is adequate and is acceptable to resolve a tax dispute.
    1. Upon written application by any person, the Secretary of the Department of Finance and Administration may release affected property from the lien imposed by any assessment, order, judgment, or certificate of indebtedness obtained by or from any levy made by the secretary if:
      1. Either full payment is made to the secretary of the sum he or she considers adequate consideration for the release, including any costs the circuit clerk is entitled to receive as provided by law in these matters; or
      2. Adequate security deposit is made with the secretary to secure the payment of the debt evidenced by the lien, including any costs the circuit clerk is entitled to receive as provided by law in these matters.
    2. When the secretary determines that his or her assessment, certificate of indebtedness, or judgment is clouding the title of property because of an error in the description of properties or similarity in names, the secretary may issue a release without the payment of any consideration or any costs the circuit clerk is entitled to receive, as provided by law in these matters.
    3. The secretary's release shall be given under his or her seal and filed in the office of the circuit clerk in the county in which the lien is filed, or it shall be recorded in any office in which conveyances of real estate may be recorded.
    1. If a return required under any state tax law has been filed by spouses and the amount of tax due on the return was understated by either the omission of an amount properly includable in the return or by erroneous deductions or credits attributable to one (1) spouse, upon written request, the Secretary of the Department of Finance and Administration may relieve the other spouse of liability for any tax, penalty, or interest attributable to the understatement of tax for that return.
    2. In determining whether to grant the relief set out in subsection (a) of this section, the secretary may take into consideration the following factors:
      1. Whether the spouse making the request for relief has significantly benefited, either directly or indirectly, from the understatement of tax;
      2. Whether the spouse making the request for relief knew or had reason to know of the understatement of tax; and
      3. Any other fact or circumstance that would make it inequitable to hold the spouse making the request for relief liable for the deficiency resulting from the understatement of tax.
    3. As used in subdivision (b)(2) of this section, “reason to know” means whether a reasonably prudent person would have known that an understatement was made.
    4. As used in subsection (a) of this section, “attributable to one (1) spouse” means that the understatement on the return was the result of the actions taken or information supplied by that spouse.
    1. The Secretary of the Department of Finance and Administration shall, as soon as practicable, but not later than one hundred eighty (180) days after July 3, 1989, prepare a statement which sets forth in simple and nontechnical terms:
      1. The rights of a taxpayer and the obligations of the secretary during an audit;
      2. The procedure by which a taxpayer may appeal any adverse decision of the secretary, including administrative and judicial appeals;
      3. The procedures for prosecuting refund claims and for filing of taxpayer complaints; and
      4. The procedures which the secretary may use in enforcing the state's revenue laws, including assessment, estimated assessment, jeopardy assessment, and the filing and enforcement of liens.
    2. The statement prepared in accordance with subsection (a) of this section shall be distributed by the secretary to a taxpayer:
      1. When a proposed assessment of any state tax is made against the taxpayer or when the taxpayer is contacted by the secretary for an examination of the taxpayer's records, whichever is earlier;
      2. When requested by the taxpayer; and
      3. At any time the secretary deems it appropriate.
    3. The secretary shall take such actions as the secretary deems necessary to ensure that such distribution does not result in multiple statements being sent to any one (1) taxpayer.
    1. Recording of Interviews.
      1. Recording by Taxpayer. Any agent of the Secretary of the Department of Finance and Administration in connection with any in-person interview with any taxpayer relating to the determination or collection of any tax shall, upon advance request of such taxpayer, allow the taxpayer to make an audio recording of such interview at the taxpayer's expense and with the taxpayer's equipment.
      2. Recording by Secretary. An agent of the secretary may make an audio recording of any interview described in subdivision (a)(1) of this section if such agent:
        1. Informs the taxpayer of such recording prior to the interview; and
        2. Upon request of the taxpayer, provides the taxpayer with a copy of such recording, but only if the taxpayer provides reimbursement for the cost of the reproduction of such copy.
    2. Safeguards.
      1. Explanations of Processes. An agent of the secretary, before or at an initial interview, shall provide to the taxpayer:
        1. In the case of an in-person interview with the taxpayer relating to the determination of any tax, an explanation of the audit process and the taxpayer's rights under such process; or
        2. In the case of an in-person interview with the taxpayer relating to the collection of any tax, an explanation of the collection process and the taxpayer's rights under such process.
      2. Right of Consultation. If the taxpayer clearly states to an agent of the secretary at any time during any interview, other than during an interview initiated by an administrative summons issued under § 26-18-305, that the taxpayer wishes to consult with an attorney, certified public accountant, or any other person permitted to represent the taxpayer before the secretary, then such agent shall suspend such interview regardless of whether the taxpayer may have answered one (1) or more questions. However, the taxpayer may be requested to sign a waiver extending the time the secretary has for making a final assessment as provided by § 26-18-401. If the taxpayer refuses to sign such a waiver, the taxpayer may be subject to an estimated assessment by the secretary.
    3. Representatives Holding Power of Attorney.
      1. Any attorney, certified public accountant, or any other person, permitted to represent the taxpayer before the secretary who is not disbarred or suspended from practice may be authorized by such taxpayer to represent the taxpayer in any interview described in subsection (a) of this section.
      2. An agent of the secretary may not require a taxpayer to accompany the representative in the absence of an administrative summons issued to the taxpayer under § 26-18-305.
      3. Such agent, with the consent of the immediate supervisor of such agent, may notify the taxpayer directly that such agent believes such representative is responsible for unreasonable delay or hindrance of an examination or investigation of the taxpayer.
    4. Section Not to Apply to Certain Investigations. This section shall not apply to criminal investigations or investigations relating to the integrity of any agent of the secretary.
    1. In General. The Secretary of the Department of Finance and Administration shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an agent of the secretary acting in such agent's official capacity.
    2. Limitations. The provisions of subsection (a) of this section shall apply only if:
      1. The written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer; and
      2. The portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
    1. General Rule.
      1. Any notice to which this section applies shall:
        1. Describe the basis for the tax due and any interest, additional amounts, additions, and assessable penalties;
        2. Identify the amounts, if any, of the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in the notice; and
        3. Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed deficiency, from the Department of Finance and Administration.
      2. An inadequate description under this subsection shall not invalidate such notice.
    2. Notice to Which Section Applies. This section shall apply to:
      1. Any notice to be given by the Secretary of the Department of Finance and Administration described in § 26-18-307;
      2. Any notice generated out of any information return matching program; and
      3. The first letter of the proposed deficiency which allows the taxpayer an opportunity for administrative review under this chapter.
    1. Authorization of Agreements. The Secretary of the Department of Finance and Administration is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments, if the secretary determines that such agreement will facilitate collection of such liability.
    2. Extent to Which Agreements Remain in Effect.
      1. In General. Except as otherwise provided in this subsection, any agreement entered into by the secretary under subsection (a) of this section shall remain in effect for the term of the agreement.
      2. Inadequate Information or Jeopardy. The secretary may terminate any agreement entered into by the secretary under subsection (a) of this section if the following conditions apply:
        1. Information that the taxpayer provided to the secretary prior to the date such agreement was entered into was inaccurate or incomplete; or
        2. The secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
      3. Subsequent Change in Financial Conditions.
        1. In General. If the secretary makes a determination that the financial condition of a taxpayer with whom the secretary has entered into an agreement under subsection (a) of this section has significantly changed, the secretary may alter, modify, or terminate such agreement.
        2. Notice. Action may be taken by the secretary under subdivision (b)(3)(A) of this section only if:
          1. Notice of such determination is provided to the taxpayer no later than thirty (30) days prior to the date of such action; and
          2. Such notice includes the reasons why the secretary believes a significant change in the financial condition of the taxpayer has occurred.
      4. Failure to Pay an Installment or any Other Tax Liability When Due or to Provide Requested Financial Information. The secretary may alter, modify, or terminate an agreement entered into by the secretary under subsection (a) of this section in the case of the failure of the taxpayer to:
        1. Pay any installment at the time such installment payment is due under such agreement;
        2. Pay any other tax liability at the time such liability is due; or
        3. Provide a financial condition update as requested by the secretary.
    1. In General. If any employee of the Secretary of the Department of Finance and Administration knowingly, or by reason of negligence, fails to release a lien under § 26-18-706 or § 26-18-811 on property of the taxpayer, such taxpayer may bring a civil action for damages against the secretary in court.
    2. Damages. In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of the following:
      1. Actual, direct, economic damages sustained by the plaintiff which, but for the action of the defendant, would not have been sustained; plus
      2. The costs of the action.
    3. Limitations.
      1. Requirement that Administrative Remedies Be Exhausted. A judgment for damages shall not be awarded under subsection (b) of this section, unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Revenue Division of the Department of Finance and Administration.
      2. Mitigation of Damages. The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
      3. Period for Bringing Action. Notwithstanding any other provision of the law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
    4. Notice of Failure to Release Lien. The secretary shall by rule prescribe reasonable procedures for a taxpayer to notify the secretary of the failure to release a lien on property of the taxpayer.
    1. In General. If, in connection with any collection of state tax with respect to a taxpayer, any employee of the Revenue Division of the Department of Finance and Administration, recklessly or intentionally disregards any provision of this title, or any rule promulgated under this title, such taxpayer may bring a civil action for damages against the Secretary of the Department of Finance and Administration. Except as provided in § 26-18-808, such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
    2. Damages. In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of ten thousand dollars ($10,000) or the sum of:
      1. Actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional actions of the officer or employee; and
      2. The costs of the action.
    3. Limitations.
      1. Requirement that Administrative Remedies Be Exhausted. A judgment for damages shall not be awarded under subsection (b) of this section unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the division.
      2. Mitigation of Damages. The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
      3. Period for Bringing Action. Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
    4. Damages for Frivolous or Groundless Claims. Whenever it appears to the court that the taxpayer's position in proceedings before the court instituted or maintained by such taxpayer under this section, is frivolous or groundless, then damages in an amount not in excess of ten thousand dollars ($10,000) shall be awarded to the Department of Finance and Administration by the court in the court's decision. Damages so awarded shall be assessed at the same time as the decision and shall be paid upon notice and demand from the secretary.
    1. Imposition of Penalty. If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax administered under this chapter, or when any person who, for compensation prepares any such return for any other person, and who:
      1. Discloses any information furnished to him or her for, or in connection with, the preparation of any such return; or
      2. Uses any such information for any purpose other than to prepare, or assist in preparing, any such return,
    2. Subsection (a) of this section shall not apply to a disclosure of information if such disclosure is made either:
      1. Pursuant to any other provision of this subchapter;
      2. Pursuant to an order of a court; or
      3. For quality or peer reviews, which are conducted under the auspices of the American Institute of Certified Public Accountants or the United States Securities and Exchange Commission.
    3. Subsection (a) of this section shall be in addition to the provisions of § 26-18-303.
    1. In General. In such form and at such time as the Secretary of the Department of Finance and Administration shall prescribe by rule, any person shall be allowed to appeal to the secretary after the filing of a notice of a lien under this subchapter on the property or the rights to property of such person, for a release of such lien alleging an error in the filing of the notice of such lien.
    2. Certification of Release. If the secretary determines that the filing of the notice of any lien was erroneous, the secretary shall expeditiously, and, to the extent practicable, within fourteen (14) days after such determination, issue a certificate of release of such lien and shall include in such certificate a statement that such filing was erroneous.
    1. The Secretary of the Department of Finance and Administration shall request the General Assembly to appropriate funds and create positions for an Office of Problems Resolution and Tax Information, which shall resolve taxpayer problems directly and provide information to taxpayers concerning tax law. This office shall report directly to the secretary or his or her designee.
    2. The secretary shall have the authority to establish the duties of the office. The office shall give highest priority to reviewing taxpayer problems and taking prompt and appropriate action to resolve problems and respond to taxpayers.
    1. The Secretary of the Department of Finance and Administration shall establish a Tax Advisory Council consisting of representatives of the Arkansas Bar Association, the Arkansas Society of Certified Public Accountants, the Arkansas Society of Accountants, the Office of Problems Resolution and Tax Information, other taxpayer-oriented groups, and other representatives of the Revenue Division of the Department of Finance and Administration.
    2. The council shall meet annually to discuss tax law changes, compliance problems, and other related matters, and it shall study methods to expedite claims for refunds, protests, appeals, and cases which take an inordinate amount of time to complete.
    3. The council will develop and submit a report to the chairs of the House Committee on Revenue and Taxation and the Senate Committee on Revenue and Taxation.
    1. A claim may be filed with the Department of Finance and Administration for any actual damages sustained as a result of any erroneous action taken in a collection activity. Each claimant applying for reimbursement shall file a claim in such form as may be prescribed by the Secretary of the Department of Finance and Administration. In order for the claim to be granted, the claimant must establish that:
      1. The actual damage resulted from an error made by the Revenue Division of the Department of Finance and Administration; and
      2. Prior to the actual damage, the taxpayer responded to all contacts by the division and provided all requested information or documentation sufficient to establish the taxpayer's position. This provision may be waived for reasonable cause.
        1. Claims made pursuant to this section shall be filed within ninety (90) calendar days after the date the actual damage was sustained.
        2. Within thirty (30) calendar days after the date the claim is received, the claim shall be approved or denied.
      1. If a claim is denied, the taxpayer shall be notified in writing of the reason for the denial of the claim.
    1. In addition to all other remedies provided by law for the collection of unpaid taxes, the Secretary of the Department of Finance and Administration may close the business of a noncompliant taxpayer as defined by § 26-18-104, subject to the administrative and judicial appeal procedures in this subchapter, if the noncompliant taxpayer for three (3) times within any consecutive twenty-four-month period fails to either:
      1. Report in the manner required by Arkansas law:
        1. Gross receipts or compensating use tax; or
        2. State income tax withholding for employees; or
      2. Remit the tax that is due for the reporting period for:
        1. Gross receipts or compensating use tax; or
        2. State income tax withholding for employees.
      1. The secretary shall give notice to the noncompliant taxpayer that the third delinquency in reporting or remitting tax in any consecutive twenty-four-month period will result in the closure of the business.
      2. The notice must be in writing and delivered to the noncompliant taxpayer by the United States Postal Service or by hand delivery.
      1. If the noncompliant taxpayer has a third delinquency in reporting or remitting tax in any consecutive twenty-four-month period after the issuance of the notice provided in subsection (b) of this section, the secretary shall notify the noncompliant taxpayer by certified mail or by hand delivery that the business will be closed within five (5) business days from the date of the notice unless the noncompliant taxpayer makes arrangements with the secretary to satisfy the tax delinquency.
      2. When the fifth day falls on a Saturday, Sunday, or legal holiday, the performance of the act is considered timely if it is performed on the next succeeding business day that is not a Saturday, Sunday, or legal holiday.
    2. A noncompliant taxpayer may avoid closure of the business by:
      1. Filing all delinquent reports and by remitting the delinquent tax including any interest and penalty; or
      2. Entering into a payment agreement approved by the secretary to satisfy the tax delinquency.
    3. After written notice delivered to a lottery retailer by the United States Postal Service or by hand delivery, the secretary may pursue a remedy under this subchapter against a lottery retailer as a noncompliant taxpayer upon receiving a referral from the Office of the Arkansas Lottery under § 23-115-605.
    1. A noncompliant taxpayer may request an administrative hearing concerning the decision of the Secretary of the Department of Finance and Administration to close the noncompliant taxpayer's business by following the procedures in this section.
    2. Within five (5) business days after the delivery or attempted delivery of the notice required by § 26-18-1001(c), the noncompliant taxpayer may file a written protest, signed by the noncompliant taxpayer or his or her authorized agent, stating the reasons for opposing the closure of the business and requesting an administrative hearing.
      1. A noncompliant taxpayer may request that an administrative hearing be held in person, by telephone, upon written documents furnished by the noncompliant taxpayer, or upon written documents and any evidence produced by the noncompliant taxpayer at an administrative hearing.
      2. The secretary has the discretion to determine whether an administrative hearing at which testimony is to be presented will be conducted in person or by telephone.
      3. A noncompliant taxpayer who requests an administrative hearing based upon written documents is not entitled to any other administrative hearing prior to the hearing officer's rendering a decision.
    3. The administrative hearing will be conducted by a hearing officer appointed by the secretary under § 26-18-405.
      1. The hearing officer will set the time and place for a hearing and will give the noncompliant taxpayer notice of the hearing.
      2. At the administrative hearing, the noncompliant taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.
      1. The hearing may be held in any city in which the Revenue Division of the Department of Finance and Administration maintains a field audit district office or in such other city as the secretary may designate.
      2. The administrative hearing will be held within fourteen (14) calendar days of receipt by the secretary of the request for hearing.
    4. The administrative hearing and determinations made by the hearing officer under this subchapter are not subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
    5. The defense or defenses to the closure of a business under this subchapter are:
      1. Written proof that the noncompliant taxpayer filed all delinquent returns and paid the delinquent tax due including interest and penalty; or
      2. That the noncompliant taxpayer has entered into a written payment agreement, approved by the secretary, to satisfy the tax delinquency.
    6. The decision of the hearing officer must be in writing with copies delivered to the noncompliant taxpayer and the Department of Finance and Administration by the United States Postal Service or by hand delivery.
    7. A decision of the hearing officer to sustain the secretary's decision to close the business of the noncompliant taxpayer is effective twenty (20) days after the date of the decision and, except as provided under § 26-18-1003, acts as an injunction prohibiting further operation of the business.
    1. As used in this section:
      1. “Administrative decision” means a decision issued under § 26-18-1002 to affirm the decision of the Secretary of the Department of Finance and Administration to close the business of a noncompliant taxpayer;
      2. “Business” means a business subject to an administrative decision; and
      3. “Business closure order” means a notice of closure issued by the secretary under § 26-18-1001.
      1. A noncompliant taxpayer may seek judicial relief from an administrative decision by filing suit within twenty (20) calendar days of the date of the administrative decision.
      2. Jurisdiction for a suit under this section shall be in the Pulaski County Circuit Court or the circuit court of the county where the noncompliant taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
        1. A noncompliant taxpayer shall not operate a business after twenty (20) calendar days from issuance of an administrative decision unless the noncompliant taxpayer obtains an order from the circuit court staying the effect of the administrative decision.
        2. An order of a circuit court to stay the effect of an administrative decision may be revoked if the secretary provides proof that the taxpayer has failed to timely file returns for or make full payment of the taxes identified in § 26-18-1001(a) after the date suit is filed under this section.
      1. If a noncompliant taxpayer fails to obtain an order staying the effect of the administrative decision or if an order staying the effect of the administrative decision is later revoked, the secretary shall follow the procedures in §§ 26-18-1004 and 26-18-1005 to enforce the closure of the business pending the outcome of the suit filed under this section.
    2. The noncompliant taxpayer or the secretary may file an appeal of the circuit court decision to the appropriate appellate court as provided by law.
      1. If a circuit court issues an order under this section affirming a business closure order, the order of the circuit court shall constitute an injunction prohibiting further operation of the business.
      2. In order to operate a business while an appeal is pending under subsection (d) of this section, a noncompliant taxpayer shall obtain an order from the appellate court staying the decision of the circuit court.
    3. The procedures established by this section are the sole methods for seeking judicial relief from an administrative decision.
    4. A noncompliant taxpayer shall not continue to operate a business if:
      1. The noncompliant taxpayer fails to seek judicial relief from a business closure order under this section;
      2. The noncompliant taxpayer fails to obtain a stay of the effect of a business closure order under subsections (c) and (e) of this section; or
      3. A business closure order is upheld on an appeal filed under subsection (d) of this section.
    5. Upon conviction, any person responsible for the decision to operate a business in violation of this subchapter is guilty of a Class A misdemeanor.
    1. If a noncompliant taxpayer fails to timely seek administrative or judicial review of a business closure decision or if the business closure decision is affirmed after administrative or judicial review, the Secretary of the Department of Finance and Administration shall affix a written notice to all entrances of the business that:
      1. Identifies the business as being subject to a business closure order; and
      2. States that the business is prohibited from further operation.
      1. The secretary may also lock or otherwise secure the business so that it may not be operated.
      2. However, if the business is located in the noncompliant taxpayer's home, the secretary shall not lock or otherwise secure the business but may post the notice under subsection (a) of this section.
    2. The secretary may request the assistance of the Division of Arkansas State Police or any state or local law enforcement official to post the notice or to secure the business as authorized in this section.
    3. Any taxpayer information disclosed by the secretary under the procedures outlined in this section shall not be subject to the confidentiality provisions of § 26-18-303.
    1. After the decision to close the noncompliant taxpayer's business becomes final, the Secretary of the Department of Finance and Administration shall contact the appropriate administrative body responsible for granting licenses to operate the business and report the closure of the business.
    2. The closure of a business under this subchapter shall be grounds for the suspension or revocation of any business license granted under the laws of the State of Arkansas, excluding professional licenses.
    1. As used in this subchapter, “electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account, commonly referenced as either an automated clearinghouse credit or an automated clearinghouse debit.
    2. A transfer of funds by wire transfer which contains no electronic record from which to identify the taxpayer, tax type, tax account number, and tax period is not an electronic funds transfer.
      1. If the Secretary of the Department of Finance and Administration determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay any tax due by electronic funds transfer:
        1. Income withholding taxes under the Arkansas Income Tax Withholding Act of 1965, § 26-51-901 et seq.;
        2. Gross receipts or sales taxes under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., §§ 26-74-201 — 26-75-705, or the Local Government Bond Act of 1985, § 14-164-301 et seq.;
        3. Compensating or use taxes under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.;
        4. Privilege taxes;
        5. Special alcoholic beverage excise taxes under § 3-7-201;
        6. Alcoholic beverage supplemental taxes under §§ 3-9-213 and 3-9-223; and
        7. Any other taxes supplemental to the taxes in subdivisions (a)(1)(A)-(F) of this section or required to be collected and remitted in the same manner as sales or use taxes or any other law of this state.
      2. If the secretary determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer:
        1. Taxes on tobacco products under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq.;
        2. Severance taxes under §§ 26-58-101 — 26-58-303; or
        3. Taxes on spirituous liquors, wines, malt liquors, and beer under §§ 3-5-101 — 3-7-114.
      3. If the secretary determines that a taxpayer's monthly liability for soft drink taxes under the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer.
    1. Monthly liability for taxes shall be determined by the secretary on the basis of average monthly liability for the preceding year.
      1. The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state.
        1. A taxpayer who pays income withholding tax by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury in the time and manner required by this section shall not be required to file a monthly withholding return.
        2. However, the taxpayer shall annually file a withholding return, setting forth the basis for each monthly payment made during the year by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury, on or before the fifteenth day following the end of each year.
        3. The annual withholding return shall be made on such a form and shall include such information as the secretary prescribes.
      2. Except as otherwise provided by this subchapter, no taxpayer required to pay tax by electronic funds transfer or who remits tax through the state module of the electronic funds transfer payment system of the United States Department of the Treasury shall be relieved from filing returns or complying with all other requirements of state tax laws.
        1. For any withholding tax reporting period, a company or any other business enterprise that provides the service of reporting and remitting withholding tax on the wages paid to Arkansas employees by other employers shall remit all such withholding taxes to the secretary by electronic funds transfer.
        2. However, a company or business that provides tax reporting and remitting services shall not be required to remit withholding taxes by electronic funds transfer if the company or business provides those services for fewer than one hundred (100) Arkansas employers.
        3. As used in this subdivision (c)(4), “Arkansas employer” means any employer required by Arkansas law to withhold, report, and remit Arkansas income tax on the wages, salary, or other compensation paid to its employees within this state.
        1. If the Federal Reserve Bank is closed on a due date that prohibits a taxpayer from being able to make a payment through electronic funds transfer, the payment shall be accepted as timely if made on the next day the Federal Reserve Bank is open.
        2. A return filed in conjunction with a remittance that cannot be made due to the closure of the Federal Reserve Bank shall be accepted as timely if filed in conjunction with the payment on the next day the Federal Reserve Bank is open.
    2. The following may elect to utilize the state module of the electronic funds transfer payment system of the United States Department of the Treasury to pay monthly income withholding taxes by electronic funds transfer:
      1. Any taxpayer who is not required by subdivision (a)(1) of this section to pay income withholding taxes by electronic funds transfer; or
      2. Any business that provides tax reporting and remitting services that is not required by subdivision (c)(4) of this section to pay income withholding taxes by electronic funds transfer.
    1. If the Secretary of the Department of Finance and Administration determines that a corporation's estimated quarterly state income tax liability under § 26-51-911 et seq. equals or exceeds twenty thousand dollars ($20,000), the corporation shall pay the quarterly income taxes due by electronic funds transfer.
    2. A corporation's quarterly liability shall be determined on the basis of average quarterly liability for the preceding year.
      1. The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state.
      2. If the corporation's income tax payment is timely made by electronic funds transfer, the corporation is not required to file a quarterly estimated tax declaration.
    1. In addition to the penalties imposed under the Arkansas Tax Procedure Act, § 26-18-101 et seq., a taxpayer required to pay taxes by electronic funds transfer who fails to so pay the amount required under any state law on or before the due date for payment of the taxes shall be assessed a penalty of five percent (5%) of the amount of taxes due.
    2. In addition to all other penalties imposed under this subchapter and the Arkansas Tax Procedure Act, § 26-18-101 et seq., a taxpayer required to pay sales taxes by electronic funds transfer who fails to so pay any of the sales taxes on or before the due date for payment of the taxes in the amounts required under § 26-52-501 or § 26-52-512 shall not be entitled to the benefits contained in §§ 26-52-503 and 26-52-512.
      1. With respect to an electronic funds transfer by automated clearinghouse debit, “to pay taxes by electronic funds transfer” means that the following conditions are met on or before the due date for such payment:
        1. The taxpayer initiates the automated clearinghouse debit by calling the designated toll-free telephone number by 3:00 p.m. on the last business day prior to the due date;
        2. The taxpayer accurately provides the Secretary of the Department of Finance and Administration with sufficient information from which the payment may be applied to the correct account, including, but not limited to, the taxpayer's name, account number, tax type, tax period, and the amount of the payment; and
        3. The taxpayer's bank account designated as the account to be debited contains adequate funds to cover the payment of taxes by debit transfer at the time the debit transaction is initiated and continuing through the due date of the tax payment.
      2. With respect to an electronic funds transfer by automated clearinghouse credit, “to pay taxes by electronic funds transfer” means that the following conditions are met on or before the due date for the payment:
          1. The taxpayer initiates a successful prenote or test transaction containing necessary information in cash concentration or disbursement plus tax payment addendum (CCD + TXP) format.
          2. “Tax payment addendum format” means a technical format for the communication of limited tax remittance data accompanying a payment through the automated clearinghouse system and includes a list of standard tax-type and account-type codes;
        1. The transfer contains an electronic addenda which allows the secretary to identify the taxpayer, tax account number, tax payment amount, tax type, and tax period in accordance with instructions provided by the secretary;
        2. The taxpayer transfers the amount of funds due; and
        3. The taxpayer's designated bank account contains adequate funds to cover the credit transfer at the time the credit transaction is initiated and continuing through the due date of the tax payment.
        1. A taxpayer is considered to have failed to pay taxes by electronic funds transfer if the conditions stated in subdivision (c)(1) or subdivision (c)(2) of this section are not met.
        2. The secretary will notify the taxpayer in writing of the failure to meet the conditions with respect to a particular reporting period.
        3. Subsequent failures to meet the prescribed conditions shall result in the assessment of penalties described in subsection (a) of this section without necessity of additional written notice.
    1. The Secretary of the Department of Finance and Administration is authorized and directed to enter into the Streamlined Sales and Use Tax Agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.
    2. In furtherance of the agreement, the secretary is authorized to act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers.
    3. The secretary is further authorized to take other actions reasonably required to implement the provisions set forth in this chapter.
    4. Other actions authorized by this section include, but are not limited to, the adoption of rules and the joint procurement, with other member states, of goods and services in furtherance of the cooperative agreement.
    5. The secretary or his or her designee is authorized to represent this state before the other states that are signatories to the agreement.
    1. No provision of the agreement authorized by this chapter in whole or part invalidates or amends any provision of the law of this state.
    2. Adoption of the agreement by this state does not amend or modify any law of this state.
    3. Implementation of any condition of the agreement in this state, whether adopted before, at, or after membership of this state in the agreement, must be by the action of this state.
    1. Uniform State Rate.
      1. Limiting the number of state rates;
      2. Limiting the application of maximums on the amount of state tax that is due on a transaction; and
      3. Limiting the application of thresholds on the application of state tax.
    2. Uniform Standards.
      1. The sourcing of transactions to taxing jurisdictions;
      2. The administration of exempt sales;
      3. The allowances a seller can take for bad debts; and
      4. Sales and use tax returns and remittances.
    3. Uniform Definitions.
    4. Central Registration.
    5. No Nexus Attribution.
    6. Local Sales and Use Taxes.
      1. Restricting variances between the state and local tax bases;
      2. Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions;
      3. Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes; and
      4. Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.
    7. Monetary Allowances.
    8. State Compliance.
    9. Consumer Privacy.
    10. Advisory Councils.
    1. The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions.
    2. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.
      1. The agreement authorized by this chapter binds and inures only to the benefit of this state and the other member states.
      2. No person, other than a member state, is an intended beneficiary of the agreement.
      3. Any benefit to a person other than a state is established by the law of this state and the other member states and not by the terms of the agreement.
      1. Consistent with subsection (a) of this section, no person shall have any cause of action or defense under the agreement or by virtue of this state's approval of the agreement.
      2. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the agreement.
    1. No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement.
      1. A certified service provider is the agent of a seller, with whom the certified service provider has contracted, for the collection and remittance of sales and use taxes.
      2. As the seller's agent, the certified service provider is liable for sales and use tax due each member state on all sales transactions it processes for the seller except as set out in this section.
      3. A seller that contracts with a certified service provider is not liable to the state for sales or use tax due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud.
      4. In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider.
      5. A seller is subject to audit for transactions not processed by the certified service provider.
      6. The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider.
      1. A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system.
      2. A seller that uses a certified automated system remains responsible and is liable to the state for reporting and remitting tax.
    1. A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard.
    1. The Department of Finance and Administration shall participate in an online sales and use tax registration system in cooperation with the states that are members of the agreement.(b) The department shall not use a seller's registration with the online sales and use tax registration system as provided in subsection (a) of this section and any subsequent collection of a sales or use tax in determining whether the seller has nexus with the state for any tax at any time.
      1. Model 1 seller;
      2. Model 2 seller;
      3. Model 3 seller; or
      4. Model 4 seller.
    1. Except as provided in subsection (c) of this section, a seller or certified service provider using a database provided by the Department of Finance and Administration shall not be liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax if the seller or the certified service provider relied on erroneous data provided by the department on sales or use tax rates, boundaries, taxing jurisdiction assignments, or the taxability matrix.
    2. The department shall promulgate rules to provide a purchaser relief from a sales or use tax, penalties, and interest for failing to pay the correct amount of sales or use tax if erroneous information on sales or use tax rates, boundaries, or taxing jurisdiction assignments or in the taxability matrix provided by the department has been relied on by the purchaser, the purchaser's seller, or the purchaser's certified service provider.
      1. If the department provides an address-based boundary database for assigning taxing jurisdictions and their associated sales or use tax rates, the department may cease providing the relief from liability provided in subsections (a) and (b) of this section if the department gave the seller or the certified service provider adequate notice.
      2. If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, the department may extend the relief from liability to the seller for a designated period of time.
      1. If the effective date of a state sales or use tax rate change is less than thirty (30) days from the enactment of the statute providing the rate change, a seller is relieved of liability for failing to collect sales or use tax at the new rate if:
        1. The seller collected sales or use tax at the effective rate immediately preceding the change; and
        2. The seller's failure to collect at the newly effective sales or use tax rate does not extend beyond thirty (30) days after the date of enactment of the new sales or use tax rate.
      2. The seller is not relieved of liability if the seller fraudulently failed to collect at the new sales or use tax rate or solicited purchasers based on the immediately preceding effective sales or use tax rate.
    1. The Department of Finance and Administration shall administer use-based exemptions and entity-based exemptions when practicable through a direct pay permit, an exemption certificate, or another means that does not burden sellers.
      1. A seller that follows the exemption requirements as prescribed by the Secretary of the Department of Finance and Administration shall be relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption.
      2. If it is determined that the purchaser improperly claimed an exemption, the department shall hold the purchaser liable for the nonpayment of tax.
      3. The relief from liability provided in subdivision (b)(1) of this section does not apply to a seller that:
        1. Fraudulently fails to collect the sales or use tax;
        2. Solicits a purchaser to participate in the unlawful claim of an exemption; or
        3. Accepts an exemption certificate from a purchaser claiming an entity-based exemption when:
          1. The subject of the transaction sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the seller; and
          2. The state where that location resides provides an exemption certificate that clearly and affirmatively indicates that the claimed exemption is not available in that state.
        1. A seller may obtain a fully completed exemption certificate or capture the relevant data elements required by the department within ninety (90) days after the date of sale.
          1. If the seller has not obtained an exemption certificate or all relevant data elements and the department makes a request for substantiation of the exemption, the seller has one hundred twenty (120) days from the date of the request to prove by other means that the transaction was not subject to sales or use tax or to obtain in good faith a fully completed exemption certificate from the purchaser.
          2. As used in subdivision (b)(4)(B)(i) of this section, “good faith” means that the seller obtains a certificate that claims an exemption that:
            1. Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
            2. Could be applicable to the item being purchased; and
            3. Is reasonable for the purchaser's type of business.
    2. A third party vendor may claim a resale exemption based on an exemption certificate provided by its customer or any other acceptable information available to the third party vendor evidencing qualification for a resale exemption regardless of whether the customer is registered with the department to collect and remit sales or use tax.
    1. The Secretary of the Department of Finance and Administration shall promulgate rules to provide:
      1. An alternative method for making payments if an electronic funds transfer fails on its due date; and
      2. A rounding algorithm for sales or use tax computation.
      1. The Department of Finance and Administration shall develop a simplified electronic return to be used for all state and local sales and use taxes levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.
      2. The department shall provide a separate reporting form for any other special or miscellaneous excise taxes so as not to violate the agreement.
      3. The department shall allow all sellers, whether or not the seller is registered under the agreement, to file a simplified electronic return.
      4. A model 4 seller that does not have a legal requirement to register in Arkansas is not required to submit information relating to exempt sales on the simplified electronic return.
      5. A seller that elects to file a simplified electronic return shall give at least a three-month notice of the seller's intent to discontinue filing a simplified electronic return.
    2. The department shall allow a seller to elect to compute the sales or use tax due on a transaction on an item or an invoice basis and shall allow the rounding rule to be applied to the aggregated state and local sales or use taxes.
      1. A seller that is registered under the agreement and indicated at the time of registration that it does not anticipate making a sale that would be sourced to Arkansas is not required to file a return.
      2. If the seller makes a taxable sale sourced to Arkansas, the seller shall file a return on or before the twentieth day of the month following the sale.
      1. A seller registered under the agreement that does not have a legal requirement to register in Arkansas shall be given a minimum of thirty (30) days' notice before the department establishes a tax liability based solely on the seller's failure to timely file.
      2. However, the department may establish a tax liability based solely on a seller's failure to timely file if the seller has a history of nonfiling or late filing.
      1. A cause of action against the seller for over-collected sales or use taxes does not accrue until sixty (60) days after a purchaser has provided written notice to the seller.
      2. The written notice to the seller required in subdivision (a)(1) of this section must contain the information necessary to determine the validity of the request.
    1. In connection with a purchaser's request from a seller of over-collected sales or use taxes, a seller shall be presumed to have a reasonable business practice if in the collection of the sales or use taxes, the seller:
      1. Uses either a certified service provider or a certified automated system, including a certified proprietary system, that is certified by the State of Arkansas; and
      2. Has remitted to the Department of Finance and Administration all taxes collected less any deductions, credits, or collection allowances.
    1. The Secretary of the Department of Finance and Administration shall provide amnesty for uncollected or unpaid sales or use tax to a seller that registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in the state in accordance with the terms of the agreement, provided that the seller was not registered to collect sales and use tax in the State of Arkansas in the twelve-month period preceding the effective date of the state's participation in the agreement.
    2. The amnesty shall preclude assessment for uncollected or unpaid sales or use tax, penalty, and interest for sales made during the period that the seller was not registered in the state, provided registration occurs within twelve (12) months of the date the state is found to be in compliance with the agreement.
    3. The amnesty shall not be available to a seller with respect to any matter or matters for which the seller received notice of the commencement of an audit and the audit is not yet finally resolved, including any related administrative and judicial processes.
    4. The amnesty shall not be available for sales or use taxes already paid or remitted to the Department of Finance and Administration or to taxes collected by the seller.
    5. The amnesty shall be fully effective, absent the seller's fraud or intentional misrepresentations of a material fact, so long as the seller continues its Arkansas sales and use tax registration and continues payment or collection and remittance of applicable sales or use taxes for a period of at least thirty-six (36) months from the date amnesty was awarded.
    6. The amnesty shall be applicable only to sales or use taxes due from a seller in its capacity as a seller and not to sales or use taxes due from a seller in its capacity as a purchaser.
    7. The secretary shall also provide amnesty to a seller for uncollected or unpaid sales or use tax if:
      1. The seller was already registered with the agreement at the time Arkansas became a full member of the agreement; and
      2. The seller was not registered to collect sales and use tax in Arkansas in the twelve-month period preceding the effective date of Arkansas's full membership in the agreement.
    1. The Secretary of the Department of Finance and Administration may:
      1. Certify service providers and automated systems to aid in the administration of sales and use tax collections; and
      2. Provide a monetary allowance to the certified service providers, certified automated systems, and to sellers that do not have a requirement to register to collect the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.
      1. A certified service provider or model 2 seller using a certified automated system is not liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax.
      2. The relief from liability provided in this section is not available to a certified service provider or model 2 seller that has incorrectly classified an item or transaction into a product category certified by the state.
        1. If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification.
        2. The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice.
        3. Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due.
    2. A certified service provider has the same relief from liability as sellers provided in § 26-21-107.
    1. The purpose of this section is to set forth a policy to protect the confidentiality rights of all participants in the agreement system and the privacy interests of consumers who deal with model 1 sellers.
    2. As used in this section:
      1. “Anonymous data” means information that does not identify a person;
      2. “Confidential taxpayer information” means all information that is protected under Arkansas's laws, rules, and privileges; and
      3. “Personally identifiable information” means information that identifies a person.
    3. With very limited exceptions, a certified service provider shall perform its tax calculation, remittance, and reporting functions without retaining the personally identifiable information of consumers.
    4. When any personally identifiable information that has been collected and retained is no longer required for the purposes of verifying the validity of an exemption, the personally identifiable information shall no longer be retained by the Department of Finance and Administration.
    5. When personally identifiable information regarding an individual is retained, the department shall provide reasonable access by such individual to his or her own information in the state's possession and a right to correct any inaccurately recorded information.
    6. If anyone other than the state or a person authorized by this state's law or the agreement seeks to discover personally identifiable information, a reasonable and timely effort to notify the individual indentified in the personally identifiable information of the request shall be made.
    7. The privacy policy in this section is subject to enforcement in the same manner as set out in § 26-18-303.
    8. All laws and rules regarding the collection, use, and maintenance of confidential taxpayer information remain fully applicable and binding.
    1. It is the intent of this act that the following objectives shall apply to the operation of the property tax system for Arkansas taxpayers:
      1. To be taxed fairly and assessed equitably throughout the state;
      2. To have access to information concerning how the system of property taxation works and how their tax dollars are spent;
      3. To participate in the determination of tax rates or millage rates levied in local taxing units;
      4. To receive fair and courteous treatment throughout the property tax system;
      5. To review the reassessments and methodology used in determining the value of their properties and that of comparable properties;
      6. To receive a prompt response by government officials to inquiries regarding the value of their properties;
      7. To require government officials or others responsible for the valuation of property to review and correct any measurement error to the nearest foot, clerical error, or other technical error which occurred in the valuation of their properties;
      8. To be sent a notice setting forth the following:
        1. The amount of any change in the value of their properties;
        2. The right of the taxpayer to appeal such a change; and
        3. The procedures which must be followed on appeal, including the name, title, address, and telephone number of the secretary of the county equalization board to whom the appeal and any supporting documentation should be directed, the deadline for requesting a hearing, and the proof required for adjustment of value;
      9. To complete all steps in the appeal process before paying any disputed taxes;
      10. To receive written notification of the outcome of any appeal; and
      11. To recover any overpayment of taxes resulting from erroneous assessments within three (3) years after payment.
    2. The rights enumerated in subsection (a) of this section shall be prominently displayed in each county assessor's and county collector's office in Arkansas.
      1. The provisions of subsections (a) and (b) of this section are goals and objectives only and no person or entity shall have a civil cause of action for any alleged breach or violation of any of these goals and objectives.
      2. However, subdivision (c)(1) of this section shall not be interpreted or construed to limit the rights of any taxpayer under any other law of this state.
    1. A county collector shall send a property taxpayer a yearly notice concerning his or her rights under the provisions of Arkansas Constitution, Amendment 79, containing the following:
      1. A statement that the assessed value of a homestead used as a principal place of residence and owned by a taxpayer who is disabled or sixty-five (65) years of age or older shall be the lower of the assessed value at the time the taxpayer qualified for the property tax relief under Arkansas Constitution, Amendment 79, or a later assessed value; and
      2. The county assessor's contact information.
    2. The yearly notice required in subsection (a) of this section may be sent with the taxpayer's tax statement or by separate first-class mail.
    1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to file with the county judge, county clerk, and county assessor of each county not later than ten (10) days before the time for the beginning of the assessment of property by the county assessors a certificate showing the percentage of true and full market or actual value that it has used, or will use, in valuing for taxation for that year the property the commission is required to assess.
    2. It shall be the duty of the county assessors and county equalization boards and county judges to adopt the same basis of valuation of property in their counties for the purpose of taxation as that certified by the commission.
    1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to answer all questions that may arise in the construction of any statute affecting the assessment, equalization, or collection of taxes, in accordance with the advice and opinion of the Attorney General.
    2. Such opinion and the rules, regulations, orders, and instructions of the commission prescribed and issued in conformity therewith shall be binding upon all officers, who shall faithfully observe and obey the same unless and until they are reversed, annulled, or modified by a court of competent jurisdiction.
    1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to summon witnesses to appear, give testimony, and produce records, books, papers, documents, and all other information of any kind or character required relating to any matter which the commission shall have authority to investigate and determine.
        1. Witnesses may be summoned by ordinary subpoena or by subpoena duces tecum issued by any member of the commission, or by the secretary, in the name of the commission, directed to any county sheriff of Arkansas, and returnable to the commission, which subpoena may be served in like manner as process issued out of any circuit court; or
        2. The subpoenas may be served by registered mail, addressed to the witness with return receipt demanded.
      1. In either case, the subpoenas must be served at least five (5) days previously to the day named therein for the appearance of the witness.
      1. For the purpose of making any investigation of any company, firm, corporation, person, association, copartnership, or public utility, subject to the provisions of the laws which the Arkansas Public Service Commission is required to administer, the commission may appoint, by an order in writing, an agent whose duties shall be prescribed in that order.
      2. In the discharge of his or her duties, the agent shall have every power of an inquisitorial nature granted by the law to the commission and the same powers as a notary public, with regard to the taking of depositions; and all powers given by law to a notary public relative to deposition are given to the agent.
    1. Except in his or her report to the commission, or when called on to testify in any court or proceedings, any agent who shall divulge any information acquired by him or her in respect to the transactions, property, or business of any company, firm, or corporation, person, association, copartnership, or public utility, while acting or claiming to act under such order, shall be fined not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) and shall thereafter be disqualified from acting as agent or in any other capacity under appointment or employment of the commission.
    1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to conduct any number of investigations, contemporaneously, through different agents, and may delegate to any agent the taking of all testimony bearing upon any investigation or hearing.
    2. The decision of the commission shall be based upon its examination of all testimony and records.
    3. The recommendations made by an agent shall be advisory only and shall not preclude the taking of further testimony nor further investigation, if the commission so orders.
    1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to call a group meeting of two (2) or more county assessors at such time and place as it may designate, due notice of which shall be given by the commission.
      1. For attending these meetings, county assessors shall receive no compensation but shall be reimbursed for their actual and necessary expenses in attending the meeting, including only the fare necessarily spent in going to and returning from the place of the meeting.
      2. When such claims are verified by oath and approved by the commission or any member thereof, they shall be presented to the county court which shall make an order showing the amount due and directing the county clerk to draw his or her warrant on the county treasurer to be paid out of any general funds belonging to the county.
      1. In case any witness who has been summoned to testify before the Arkansas Public Service Commission shall fail or refuse to testify to or make answer to any material question relating to any matter under investigation or to produce any records, books, papers, or other documents in his or her custody or control when required to do so, any circuit court, or any circuit judge thereof, upon application of any member of the commission, shall issue an attachment for the witness and compel him or her to comply with the summons and to attend before the commission and produce the books, documents, papers, or records and give testimony upon matters about which he or she may be lawfully interrogated.
      2. The circuit court, or circuit judge thereof, may punish a witness for contempt as in the case of disobedience of a like subpoena issued from the circuit court for the refusal to testify in any cases pending therein.
      1. No witness shall be excused from attending or testifying or from producing books, papers, records, accounts, and other documents before the commission, or in obedience to its subpoena, on the ground or for the reason that the testimony, documentary or otherwise, required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture.
      2. No person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may testify or produce evidence, documentary or otherwise, before the commission, or in obedience to its subpoena. However, no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.
      1. Every witness who shall appear before the commission by its order shall receive for his or her attendance the fees and mileage allowed by law for witnesses in civil cases in circuit courts, which shall be audited and paid by the state in the same manner as other expenses of the commission are audited and paid, upon the presentation of the proper voucher sworn to by the witness and approved by the commission or the chair thereof.
      2. Witnesses summoned at the instance of parties other than the commission shall be paid by the party causing the witnesses to be summoned.
    1. Any taxpayer aggrieved by the action or order of the Arkansas Public Service Commission respecting the assessment or equalization of property shall have the right of appeal to the circuit court and thence to the Supreme Court.
      1. All appeals from the commission involving the assessment or equalization of property locally assessed may be either to the circuit court of the county where the property is located or the Pulaski County Circuit Court.
      2. All appeals involving the assessment or equalization of property, the original assessment of which has been fixed by the commission, shall be to the Pulaski County Circuit Court.
    2. All appeals shall be taken within thirty (30) days from the date of the action or order appealed from by filing a written notice with the commission and shall be tried de novo.
    3. No appeal shall lie from the action or order of the commission on original assessments unless the property owner shall have first exhausted his or her remedy before the commission by way of petition for review.
    1. The amount of taxes which may be levied for general purposes in any one (1) year by the constituted authorities of any city or town under the provisions of Arkansas Constitution, Article 12, § 4, may equal, but not exceed, the maximum amount of levy at any time fixed under Arkansas Constitution, Article 12, § 4.
    2. This limitation shall not be construed to prohibit assessments on property adjacent to local improvements made in any city or town for the purpose of paying the costs and damages occasioned thereby.
      1. Any person having real or personal property assessed for taxation may appear in person or by attorney before the county court, at the time of the levy of taxes by it, or at the succeeding term thereafter, and by petition or remonstrance, object to the levy of any specific tax for illegality, and may by sworn petition, set forth and show any facts upon which the illegality rests.
      2. If the petition is based upon facts, it shall be the duty of the county court to determine both the law and the facts presented, and for that purpose, it shall hear any testimony offered.
      3. If the county court should rule against the objection so presented, the party objecting to the levy may appeal from the ruling to the circuit court of the county. Upon giving bond within ten (10) days, with good and sufficient security, in double the amount of specific tax levied upon the property of the party objecting, subject to the approval of the circuit court, and conditioned for the payment of the tax, should it be decided to have been lawfully levied, it shall operate as a supersedeas of the collection of the tax.
      1. The bond shall not operate to prevent the tax being placed upon the tax book.
      2. The bond shall be given to the State of Arkansas.
      3. In the event the levy shall finally be declared illegal, the judgment shall operate as an acquittal to the county collector and his or her securities for the noncollection of the tax.
      4. If the tax is finally declared legal, the county collector shall immediately proceed to collect it as in other cases, or by action on the appeal bond.
      5. Any taxpayer feeling himself or herself aggrieved by any such levy may, at any time before the returning of delinquent taxes by the county collector for that year, appeal as provided in this section.
      6. Any person interested in the levy of the tax may resist the petition to prevent a levy, either before the county court or in the circuit court on appeal.
      7. In all cases where an appeal is taken, the county clerk shall enter on the tax books, opposite the name of the party, tract, or lot of land, the supersedeas of the specific tax.
      1. The county court shall employ counsel to attend before it at the hearing, and, should it be appealed to the circuit court, the prosecuting attorney and, if to the Supreme Court, the Attorney General, shall appear in the interest and behalf of the levy of the tax.
      2. The real or personal property upon which the illegal specific tax as alleged to have been levied shall not be withheld from sale on account of any taxes for any purpose due or to become due upon it and which has not been paid as provided by law, and against the collection of which no petition has been filed.
    1. Whenever the electors of any county of this state may levy a voluntary tax, it shall be unlawful for the county judge, the county court, or any other county official to use or allocate any moneys derived from any voluntary tax for purposes other than for which it was levied and collected.
    2. Any county official violating the provisions of this section shall, upon conviction, be removed from office.
      1. Every city or county that adopts an ordinance levying a local sales and use tax which is collected by the Secretary of the Department of Finance and Administration shall submit the ordinance to the secretary at least forty-five (45) days prior to the election on the levy.
      2. The secretary shall review the ordinance to determine if the proposed levy complies with all statutory requirements and limitations, including a separate levy of the sales and use tax, and an authorized sales or use tax rate.
      1. The secretary shall approve or reject the ordinance and provide written notice to the city or county within fifteen (15) days of receipt of the ordinance.
        1. If the ordinance is rejected, the secretary shall note the defects.
        2. If the ordinance is rejected and the city or county fails to correct the noted defects, any tax levied by the defective ordinance shall not be collected by the secretary.
    1. Whenever a special election is called for the purpose of submitting an initiated measure which levies a city or county sales and use tax to be collected by the secretary, the county board of election commissioners shall submit the initiated measure to the secretary and the provisions of subsections (a) and (b) of this section shall apply.
    2. No ordinance or initiated measure shall be deemed invalid because of the failure to submit the ordinance or measure to the secretary or to use a sample form, and such failure shall not constitute a cause of action to invalidate an ordinance or initiated measure.
    1. The Arkansas Municipal League, the Association of Arkansas Counties, and the Department of Finance and Administration may jointly develop sample forms and ordinances for levying local sales and use taxes which comply with all statutory requirements and limitations.
    2. The sample forms and ordinances will be reviewed regularly in order to comply with changes in the law.
    1. When any person, firm, company, copartnership, association, or corporation whose property is required by law to be assessed for ad valorem taxation by the Tax Division of the Arkansas Public Service Commission shall file a petition with the Arkansas Public Service Commission or the Arkansas Transportation Commission [abolished] seeking review of the assessment, the chair of the commission having jurisdiction over the review shall, within ten (10) days of the filing of the petition, give notice to the Attorney General.
      1. Upon receipt of notice from the Arkansas Public Service Commission or the Arkansas Transportation Commission [abolished] that a person, firm, company, copartnership, association, or corporation whose property is required by law to be assessed for ad valorem taxation by the division has filed a petition for review of the assessment, the Attorney General shall undertake legal representation of the division and shall serve as chief counsel for the division during the pendency of the review before the commission having jurisdiction of the matter.
      2. The Attorney General shall be assisted by the division's legal counsel and on appeals to the Arkansas Transportation Commission [abolished] by the Arkansas Transportation Commission's [abolished] legal counsel.
      3. If any assessment made by the division is modified on review by order of the commission having jurisdiction of the matter, the Attorney General, after consulting with the administrator of the division, shall be empowered to appeal the commission order to the Pulaski County Circuit Court and shall continue to serve as chief counsel for the division during the appellate process, with the authority to appeal subsequent court orders.
        1. There shall be a penalty of ten percent (10%) of all taxes due on all persons and property delinquent in assessment.
        2. Where the penalty of ten percent (10%) of the amount of all taxes due shall amount to less than one dollar ($1.00), the penalty shall be arbitrarily fixed at one dollar ($1.00).
        1. All persons and property not listed for assessment with the county assessor on or before May 31 of the year in which the assessment is required, as provided by this chapter, shall be deemed to be delinquent in assessment, and the county assessor shall so designate it on his or her records that the county clerk may know each item of property and all persons so delinquent.
        2. It shall be the duty of the county officer designated by the county quorum court under § 26-28-102 to affix and extend the penalty provided in this section against each item of property and all persons delinquent in assessment.
      1. The penalty shall be collected by the county collector and shall be paid into the county general fund.
    1. Between January 1 and June 5 of each year, each county assessor shall file with the Treasurer of State a sworn statement that he or she will comply with subsection (a) of this section. If a county assessor fails to file the statement by June 5, then the Treasurer of State shall withhold county turnback to that county until the statement is received by the Treasurer of State.
    2. If the neglect is willful, the delinquent shall be deemed guilty of a misdemeanor and shall be fined in any sum not more than one thousand dollars ($1,000).
      1. In addition to the penalties for not assessing, delinquent persons shall be required to pay an additional fifty cents (50¢) for each list, which shall be utilized by the county assessor to help pay for the expense of assessing property, subject to appropriation by the quorum court.
      2. This additional sum shall be collected by the county collector in the usual manner and paid into the assessor's late assessment fee fund established on the books of the county treasurer.
      3. Moneys in the assessor's late assessment fee fund shall be allowed to accumulate and the fees collected shall not be used in the final tax settlement proration for the costs of operating the assessor's office.
    1. It shall be unlawful for any person to refuse to give the county assessor or the appointed deputy his or her name and a complete and accurate description of his or her personal and real property, together with the location and value of it.
    2. Any person so refusing, upon conviction, shall be guilty of a violation and shall be fined in any sum not less than ten dollars ($10.00) and not more than twenty-five dollars ($25.00).
    1. All duties imposed by this subchapter on all state and county officers are declared to be mandatory, and any officer who neglects, fails, or refuses to perform any such duty shall be subject to removal from office and liable on his or her official bond for such neglect, failure, or refusal.
      1. Upon the refusal or failure of any state officer to perform any duty imposed upon him or her under the provisions of this subchapter, any citizen of the state may, and the Attorney General shall, institute in the proper court mandamus proceedings to compel the state officer to perform his or her duties.
      2. Upon the refusal or failure of any county officer to perform any duty imposed upon him or her under the provisions of this subchapter, any citizen of the county may, and the prosecuting attorney of the district including such county shall, institute in the proper court mandamus proceedings to compel the county officer to perform his or her duties.
    1. It shall be the duty of each county assessor to keep his or her appraisal and assessment data and records current by securing the necessary field data and making changes in valuations as changes occur in land use and improvements, and as errors are discovered and corrected, so that his or her records will at all times show the valuation of property in accordance with the provisions of this subchapter.
    2. Whenever land assessed on an acreage basis is subdivided into lots, the land shall be reassessed on the basis of lots, and whenever land is rezoned for a different use, the land shall be reassessed on the basis of its new classification.
    1. The appraisal and assessment shall be according to value as required by Arkansas Constitution, Article 16, Section 5.
    2. The percentage of true and full market or actual value to be used in the appraisal and assessment shall be fixed and certified by the Arkansas Public Service Commission as provided by § 26-24-104.
    3. Until and unless a budget system is adopted with provisions for eliminating excessive and illegal tax rates and expenditures, the commission shall not fix and certify a percentage of true and full market or actual value in excess of twenty percent (20%).
        1. The Assessment Coordination Division shall prepare a ratio study for the purpose of determining the average ratio of full assessed value to the true and full market or actual value of real property, by classifications, in each of the several counties and school districts of the state in the assessment year that reappraised values are placed on the assessment rolls.
          1. This ratio study shall be based on sales-to-assessment ratios, supplemented with appraisal to assessment ratios as required to meet generally accepted statistical techniques.
          2. The study shall determine the actual assessment level of real estate as required by law, including the value of agricultural lands that qualify for use and productivity valuation, by classification such as residential, commercial and industrial, agricultural, and other classifications.
          3. No later than January 31 of every year, all counties shall report, by electronic transmission, sales data to the division. The sales data shall include:
            1. A listing of each property transferred under a warranty deed or special warranty deed;
            2. The consideration paid;
            3. The date of the sale;
            4. The parcel number;
            5. The legal description;
            6. The names of the grantor and grantee;
            7. The most recent assessed value of the property; and
            8. Other data prescribed by the division.
            1. The sales-to-assessment ratio study shall include sales data for the calendar year previous to the assessment year.
            2. In those instances when the number of appropriate sales from the calendar year previous to the assessment year is insufficient to present a statistically sound sample, the sales-to-assessment ratio study may include sales data for the three (3) calendar years previous to the assessment year.
            3. The division shall report the preliminary sales-to-assessment ratio studies to the county assessor and county judge on or before March 1 of the assessment year.
      1. The division shall supplement the sales-to-assessment ratio with appraisals as required and report the original combined real property ratios to the county assessor and county judge.
      2. In conducting the studies, the division shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers' Standard on Ratio Studies.
        1. An annual ratio study for the purpose of determining the average ratio of assessed value to the true and full market or actual value of personal property in each of the several counties of the state shall also be made.
        2. This ratio study of personal property shall be based upon a physical examination of the records of each county assessor's office to determine the degree of compliance with the criteria as established by the Arkansas Commercial Personal Property Appraisal Manual .
      1. The personal property original ratio study shall be certified by the division to the county judge and county assessor of each county by September 15 of each year.
      1. On or before August 1 of each year the county assessor shall report to the division by total of items and value the total assessment of the county as made by the county assessor.
        1. The county clerk shall file a report with the division showing the percent of true market or actual value at which the county equalization board has equalized the assessed values of the property of the county under the county equalization board's jurisdiction for the year, together with an abstract of the adjusted assessment by total of items and value.
        2. The report and abstract shall be filed each year no later than thirty (30) days after final adjournment of the county equalization board.
      1. Whenever any county assessor or deputy county assessor attends a school or instructional meeting pursuant to the request of the division, he or she shall be entitled to reimbursement for his or her travel expenses, which shall be paid by the division upon filing of a proper claim for the travel expenses.
      2. The county assessor and his or her deputies shall also be entitled to reimbursement for travel expenses within the county in performance of their duties as required by this section, which shall be paid by the county.
        1. All reimbursements for travel expenses shall be limited to the actual and necessary expenses incurred.
        2. The total expenses incurred, other than for transportation, for travel within the county shall not exceed one-half (½) the daily maximum amount authorized for travel of state employees within the state, and, for travel outside the county, the amount shall not exceed the daily maximum amount authorized for travel of state employees within the state, in accordance with state travel laws and rules.
        3. The transportation expenses shall not exceed the actual amount paid, except that the reimbursement for use of a private automobile shall be at the same rate per mile as is allowed in the reimbursement of state employees under the state travel laws and rules for transportation expenses for each mile actually and necessarily traveled by the automobile, within and without the county.
      1. In addition to the other provisions of this section, whenever the September 15 ratio for the classifications of market value real estate, business personal property, auto and other personal property, or agricultural and timber falls below eighteen percent (18%) or above twenty-two percent (22%) of full fair market value, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
      2. Furthermore, when a ratio study determines that the county does not meet the ratio standards found in the International Association of Assessing Officers' Standard on Ratio Studies, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
      3. The division may conduct a county ratio study, in full or in part, at any time that the division determines that a county has engaged in inappropriate assessment roll changes or manipulations.
        1. When a county has failed the ratio study, the division shall direct and supervise a detailed market value and assessment value analysis of the area or class indicating a deficiency in order to determine the political subdivisions and neighborhoods or appraisal methodology, or both, in need of assessment value adjustments.
        2. When appropriate assessment value adjustments are determined for the county, the county shall place the assessment value adjustments on the assessment rolls of the county in a manner that is most equitable for the taxpayers of the county for taxation according to the laws of this state.
          1. The division and counties employing contracted appraisal services shall bear no additional expense for correcting a failed ratio study if the failure is found to be the fault of the contractor.
          2. The contractor shall bear the cost of these additional services.
        1. In the case in which a county fails to place the assessment value adjustments on the assessment rolls of the county as directed by the division, the division may notify the disbursing agents of the State of Arkansas to withhold the funds accruing to the county from all sources until the time that the adjustments are made.
        2. If the adjustments are not made for one (1) year, the withheld funds shall not be reimbursed to the county and shall be deposited into the State General Government Fund, and withholding shall begin for the following year.
      1. If a county is aggrieved at the findings of the division, the county may appeal the findings of the division to the Director of the Assessment Coordination Division.
      2. The officials of each unit of government affected shall have the right to examine the records of the division that pertain to the ratio findings or value adjustment order for that unit of government.
    1. Any countywide valuation review program begun in accordance with the requirements of § 26-26-305 [repealed] shall be deemed to be a countywide reappraisal of property pursuant to directive of law enacted by the General Assembly.
    2. Any county which has begun but has not completed a countywide valuation review program in accordance with the requirements of § 26-26-305 [repealed] or otherwise on March 26, 1997, shall direct that a countywide reappraisal of property be completed, using, in part, valuations determined through the valuation review program for each parcel of taxable property reviewed to date.
    3. The provisions of § 26-26-401 et seq. relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applicable where a countywide reappraisal of property is completed as provided in this section.
    4. Any county which has begun but has not completed a countywide valuation review program in accordance with the requirements of § 26-26-305 [repealed] or otherwise on March 26, 1997, shall suspend the valuations determined through the valuation review program and use the valuations which were applicable prior to the valuation adjustments pending the completion of the countywide reappraisal.
    5. Ad valorem taxes which are due and owing on March 26, 1997, shall continue to be due and owing and shall not be affected by the terms of this section.
    1. When there is a countywide reappraisal of property for ad valorem tax purposes in any county, which reappraisal is conducted over a period of two (2) or more years, taxes shall not be assessed on the basis of the reappraised value of any property in the county until all taxable property in the county has been reappraised. When a countywide reappraisal of property is completed in any county and taxes are first assessed on the newly reappraised values, the provisions of Arkansas Constitution, Amendment 59, and § 26-26-401 et seq. relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applicable.
    2. Provided that newly discovered real property, new construction and improvements to real property, and personal property, shall be listed, appraised and assessed as otherwise provided by law until the countywide reappraisal of property is completed.
    3. No county which is conducting a comprehensive countywide reappraisal of property for ad valorem tax purposes which is in progress on the third Monday in November in any year, or any municipality or school district therein, shall be subject to any penalties provided in § 26-26-304 for such fiscal year if the following requirements are met:
      1. The reappraisal meets the requirements of § 26-26-401; and
      2. The reappraisal is conducted in accordance with a plan which has been approved by the Assessment Coordination Division and provides that the reappraisal will be completed within twenty-four (24) months following the date of such approval.
      1. On or before March 31 of each year, the county collector of each county shall certify to the Chief Fiscal Officer of the State the amount of the real property tax reduction provided in § 26-26-1118.
        1. After receipt of the certification from the county collectors, the Chief Fiscal Officer of the State shall determine the proportionate share of the total statewide reduction attributable to each county.
          1. At the end of each month, the Chief Fiscal Officer of the State shall determine the balance in the Property Tax Relief Trust Fund and certify it to the Treasurer of State.
          2. The Treasurer of State shall make distributions from the Property Tax Relief Trust Fund to each county treasurer in accordance with the county's proportionate share of the total statewide property tax reduction for that calendar year resulting from the provisions of § 26-26-1118.
            1. Effective January 1, 2006, the Treasurer of State shall make a monthly distribution from the Property Tax Relief Trust Fund to each county treasurer.
            2. The distributions for January, February, and March shall be in accordance with the county's proportionate share of the total statewide property tax reduction as of the final county certification of the previous year.
            3. Beginning in April of each year, the distribution from the Property Tax Relief Trust Fund to each county treasurer shall be in accordance with the county's proportionate share of the total statewide property tax reduction for that calendar year under § 26-26-1118.
          1. If the Chief Fiscal Officer of the State has not received all of the certifications from the county collectors, then the distribution of the Property Tax Relief Trust Fund shall be as follows until all certifications have been received:
            1. The total amount of the Property Tax Relief Trust Fund to be distributed shall equal the total amount in the Property Tax Relief Trust Fund multiplied by the proportion of the previous year's total property assessment, less tangible personal property and property owned by utilities and regulated carriers, of the counties that have certified, divided by the previous year's total property assessment, less tangible personal property and property owned by utilities and regulated carriers in the state; and
            2. Each county that has certified its property tax reduction shall receive an amount of the Property Tax Relief Trust Fund, as adjusted in subdivision (a)(2)(C)(i)(a) of this section, equal to the county's proportionate share of the total property tax reduction of the counties that have certified their property tax reductions.
          2. However, until all counties have certified their property tax reductions to the Chief Fiscal Officer of the State, no county shall receive more than seventy-five percent (75%) of its certified property tax reduction.
          1. Funds so received by the county treasurers shall be credited to the county property tax relief fund.
          2. Ninety-six percent (96%) of the funds shall be allocated and distributed to the various taxing entities within the county that levy ad valorem taxes.
          3. The allocation shall be based on a certification from the county collector of the amount of the real property tax reduction per taxing entity provided in § 26-26-1118.
            1. The four percent (4%) retained in the county property tax relief fund is the commission of the county collector as authorized under § 21-6-305(a)(4).
            2. This commission shall become a part of the total commission of the county collector.
          4. These funds are subject to § 21-6-305(d).
        1. Funds so received by the various taxing units shall be used for the same purposes and in the same proportions as otherwise provided by law.
      1. Distributions to each county shall continue on a monthly basis from the Property Tax Relief Trust Fund until the full amount certified by the county collectors, as of November 15 of each year, has been paid.
        1. In no event shall the amount distributed to a county during a calendar year from the Property Tax Relief Trust Fund exceed the final amount certified by the county collector as of November 15 as the property tax reduction for that calendar year resulting from § 26-26-1118.
        2. If a county is paid in excess of its proportionate share, the Chief Fiscal Officer of the State may reduce payments made to the county for the subsequent calendar year until the overpayment is recovered.
          1. On or before December 31 of each year, the Chief Fiscal Officer of the State, in cooperation with the Legislative Council and the Legislative Auditor, shall determine that portion of the balance remaining in the Property Tax Relief Trust Fund that is in excess of the required reimbursement to the counties and shall certify the excess to the Treasurer of State.
          2. Beginning December 31, 2005, and on December 31 of each subsequent year, the Treasurer of State shall:
            1. Calculate each county's proportionate share of one million dollars ($1,000,000) based on the proportions used to reimburse the county for property tax reductions under subsection (a) of this section;
            2. Transfer the amount calculated under subdivision (b)(2)(C)(ii)(a) of this section to the county treasurer for allocation to the county assessor for use by the county assessor for the costs of administering Arkansas Constitution, Amendment 79, including without limitation costs for personnel, equipment, services, and postage used in the administration of Arkansas Constitution, Amendment 79;
            3. Distribute two million dollars ($2,000,000) from the Property Tax Relief Trust Fund to the counties in the state using the formula stated in § 19-5-602(c)(1); and
            4. Distribute two million dollars ($2,000,000) from the Property Tax Relief Trust Fund to the municipalities in the state using the formula stated in § 19-5-601(c).
            1. For calendar year 2019, by the last business day of each month following April 9, 2019, the Chief Fiscal Officer of the State shall certify to the Treasurer of State the total amount of moneys credited to the Property Tax Relief Trust Fund since April 9, 2019.
            2. For calendar years after 2019, by the last business day of each month, the Chief Fiscal Officer of the State shall certify to the Treasurer of State the total amount of moneys credited to the Property Tax Relief Trust Fund for the year.
          1. The Chief Fiscal Officer of the State shall determine annually the estimated amount needed to fund the distributions required under subdivision (b)(2)(C) of this section for the next year.
          2. When the amount certified by the Chief Fiscal Officer of the State under subdivision (b)(2)(D)(i) of this section exceeds the amount determined under subdivision (b)(2)(D)(ii) of this section for the year:
              1. By July 1, 2019, the Treasurer of State shall make a one-time transfer of eight million two hundred forty-six thousand five hundred seventy-three dollars ($8,246,573) to the County Voting System Grant Fund.
              2. The transfer required under subdivision (b)(2)(D)(iii)(a)(1) of this section shall occur as soon as practicable after July 1, 2019, if, by July 1, 2019, the amount certified by the Chief Fiscal Officer of the State under subdivision (b)(2)(D)(i) of this section does not exceed the amount determined under subdivision (b)(2)(D)(ii) of this section by the full amount required for the transfer under subdivision (b)(2)(D)(iii)(a)(1) of this section; and
            1. Except as provided in subdivision (b)(2)(D)(iii)(a) of this section, the revenues credited to the Property Tax Relief Trust Fund in excess of the amount determined under subdivision (b)(2)(D)(ii) of this section shall be transferred from the Property Tax Relief Trust Fund to the Long Term Reserve Fund.
        1. The Legislative Auditor or his or her designee shall audit the books and records of the county assessor, county collector, or any other party as needed to ensure that the amount of the property tax reduction certified by the county collector is accurate.
        2. The Chief Fiscal Officer of the State may adjust the amount certified by the county collector if it is discovered that the certified amount is incorrect.
      1. On or before June 30 and November 15 of each year, the county collector of each county shall recertify to the Chief Fiscal Officer of the State the amount of the real property tax reduction provided in § 26-26-1118.
      2. The recertification shall reflect the most current total of tax reductions based on corrections and amendments to the records of the county assessor.
      3. After receipt of the recertification from the county collectors, the Chief Fiscal Officer of the State shall redetermine the proportionate share of the total statewide reduction attributable to each county.
    1. For purposes of Arkansas Constitution, Amendment 79, and any laws of this state referencing countywide reappraisals of property for property taxation purposes, a countywide reappraisal of property shall be deemed to have been completed on the date that the county collector's books are open for collection on the newly appraised values.
    2. This section does not prohibit any increases allowed by the Arkansas Constitution.
      1. Whenever a countywide reappraisal or reassessment of property subject to ad valorem taxes, made in accordance with procedures established in this subchapter and with rules of the Assessment Coordination Division, or its successor agency, adopted pursuant to the authority granted in this section shall result in an increase in the aggregate value of taxable real and personal property in any taxing unit in this state of ten percent (10%) or more over the previous year, the rate of city or town, county, school district, and community college district taxes levied against the taxable real and personal property of each taxing unit shall, upon completion of the reappraisal or reassessment, be adjusted or rolled back by the governing body of the taxing unit for the year for which levied as provided.
      2. The adjustment or rollback of tax rates or millage for the base year as defined in subdivision (a)(5) of this section shall be designed to assure that each taxing unit will receive an amount of tax revenue from each tax source no greater than ten percent (10%) above the revenues received during the previous year from each tax source, adjusted for any lawful tax or millage rate increase or reduction imposed in the manner provided by law for the year for which the tax adjustment or rollback is to be made, and after making the following additional adjustments:
        1. By excluding from calculation the assessed value of, and taxes derived from, tangible personal property assessed in the taxing unit and all real and tangible personal property of public utilities and regulated carriers assessed in the taxing unit; and
          1. By computing the adjusted or rollback millage rates on the basis of the reassessed taxable real property for the base year that will produce an amount of revenue no greater than ten percent (10%) above the revenues produced from the assessed value of real property in the taxing unit after making the aforementioned adjustments for personal properties and properties of public utilities and regulated carriers as provided in subdivision (a)(2)(A) of this section from millage rates in effect in the taxing unit during the base year in which the millage adjustment or rollback is to be calculated;
          2. In calculating the amount of adjusted or rollback millage necessary to produce tax revenues no greater than ten percent (10%) above the revenues received during the previous year, the governing body shall separate from the assessed value of taxable real property of the taxing unit, newly discovered real property and new construction and improvements to real property, after making the adjustments for personal property or property of public utilities and regulated carriers as provided in subdivision (a)(2)(A) of this section, and shall compute the millage necessary to produce an amount of revenues equal to, but no greater than, the base year revenues of the taxing unit from each millage source. Such taxing unit may elect either to obtain an increase in revenues equal to the amount of revenues that the computed or adjusted rollback millage will produce from newly discovered real property, new construction, and improvements to real property, or, if the same is less than ten percent (10%), the governing body of the taxing unit may recompute the millage rate to be charged to produce an amount no greater than ten percent (10%) above the revenues collected for taxable real property during the base year.
      3. The amount of revenues to be derived from taxable personal property assessed in the taxing unit for the base year, other than personal property taxes to be paid by public utilities and regulated carriers in the manner provided, shall be computed at the millage necessary to produce the same dollar amount of revenues derived during the current year in which the base year adjustment or rollback of millage is computed, and the millage necessary to produce the amount of revenues received from personal property taxes received by the taxing unit, for the base year shall be reduced annually as the assessed value of taxable personal property increases until the amount of revenues from personal property taxes, computed on the basis of the current year millage rates, will produce an amount of revenues from taxable personal property equal to or greater than that received during the base year, and thereafter the millage rates for computing personal property taxes shall be the millage rates levied for the current year.
      4. The taxes to be paid by public utilities and regulated carriers in the respective taxing units of the several counties of this state during the first five (5) calendar years in which taxes are levied on the taxable real and personal property as reassessed and equalized in each of the respective counties as a part of a statewide reappraisal program shall be the greater of the following:
        1. The amount of taxes paid on property owned by such public utilities or regulated carriers in or assigned to the taxing unit, less adjustments for properties disposed of or reductions in the assessed valuation of such properties in the base year as defined below; or
        2. The amount of taxes due on the assessed valuation of taxable real and tangible personal property belonging to the public utilities or regulated carriers located in or assigned to the taxing unit in each county at millage rates levied for the current year.
        1. As used in this section, “base year” means the year in which a county completes reassessment and equalization of taxable real and personal property as a part of a statewide reappraisal program and extends the adjusted or rolled back millage rates for the first time, as provided in subdivision (a)(1) of this section, for the respective taxing units in that county for collection in the following year.
        2. In the event the amount of taxes paid the taxing unit in a county in the base year, as defined in this subdivision (a)(5), is greater than the taxes due to be paid to such taxing unit for the current year of any year of the second period of five (5) years after the base year, the difference between the base-year taxes and the current year taxes for any year of the five-year period shall be adjusted as follows:
        3. If the current-year taxes of a public utility or regulated carrier equal or exceed the base-year taxes due a taxing unit during any year of the first ten (10) years after the base year, the amount of taxes to be paid to the taxing unit shall thereafter be the current-year taxes, and the adjustment authorized in this section shall no longer apply in computing taxes to be paid to such taxing unit.
      5. In the event the requirement for payment of taxes by public utilities and regulated carriers, or any class of utilities or carriers for the ten-year period as provided in subdivision (a)(5)(C) of this section shall be held by court decision to be contrary to the constitution or statutes of this state or of the United States Government, all utilities and all classes of carriers shall receive the same treatment provided or required under the court order for a particular type of carrier or utility if deemed necessary to promote equity between similar utilities or classes of carriers.
    1. If it is determined that the adjustment or rollback of millages as provided for in this section will render income from millages pledged to secure any bonded indebtedness insufficient to meet the current requirements of all principal, interest, paying agents' fees, reserves, and other requirements of a bond indenture, any pledged millage shall be rolled back or adjusted only to a level which will produce at least a level of income sufficient to meet the current requirements of all principal, interest, paying agents' fees, reserves, and other requirements of the bond indenture.
    2. Pursuant to the application of Arkansas Constitution, Amendment 74, to the rollback provisions of Arkansas Constitution, Amendment 59, for millage rates levied by the various school districts within the county, if it is determined that the adjustment or rollback of millages as provided in Arkansas Constitution, Amendment 59, will result in a tax rate available for maintenance and operation of less than the uniform rate of tax, then the millage shall be rolled back only to the uniform rate of tax plus debt service millage required, and no further.
    1. In the base year of an approved countywide reassessment program, the county clerk shall certify the assessed value by taxing unit after the county equalization board hearings and county court hearings, on the first Monday in November.
    2. On or before the second Monday in November of the base year, the county clerk shall report to the governing body of each taxing unit the following completed form, accurately listing the required data on each line:
      1. The governing body of each taxing unit in the base year of countywide reassessment shall complete the following form and return the form to the county clerk on or before the third Monday in November of the base year, using certified data provided by the county clerk as described in § 26-26-402.
      2. The form shall be signed by the officers of the governing body of each taxing unit.
      1. If newly discovered and new construction properties are less than a ten percent (10%) increase in assessments, the governing body of each taxing unit may elect to increase the rolled back millage an amount to allow no more than an overall ten percent (10%) increase in taxes.
      2. If the newly discovered and new construction property list is ten percent (10%) or more above reassessment total, the total amount is allowed; however, no increase in the rolled back millage shall be considered.
    1. Each tax source or millage levy shall be computed and rounded up to the nearest one-tenth (1/10) mill.
    2. The county clerk shall file and record the completed forms required in § 26-26-403 and this section and shall forward a copy of the forms to the Assessment Coordination Division by December 1 of the base year.
    1. Revenues derived from personal property by each taxing unit in the county are to be frozen at the base-year levels. The millage applied to personal property only is then adjusted downwards in the same proportion that the assessment base increases. The current millage is defined as the millage that was used in each taxing unit to derive the base-year revenues for personal property. This procedure shall be followed each year until the personal property millage rate is equal to or lesser than the millage rate applied to real estate, at which time the interim adjustment is complete, and both personal property and real estate shall thereafter be taxed at the same millage rate.
    2. In calculating the interim millage, all millage will be rounded up only to the nearest one-tenth (1/10) mill or to four (4) places to the right of the decimal.
    3. The adjustment shall be performed by the county clerk at the conclusion of all due process proceedings, or by the second Monday in November, whichever is earlier. The county clerk shall then certify the interim personal property millage rate by taxing unit to the county quorum court by the third Monday in November for certification of all millage rates.
    4. The county clerk shall file and record the completed form required by this section. The county clerk shall forward a copy of the form to the Assessment Coordination Division by December 1 of each year where an interim millage is used, or the year of final adjustment.
    1. Residential property used solely as the principal place of residence of the owner shall be assessed in accordance with its value as a residence, so long as the property is used as the principal place of residence of the owner and shall not be assessed in accordance with some other method of valuation until the property ceases to be used for the residential purpose.
        1. Agricultural land, pasture land, and timberland valuation shall be based on the productivity of the agricultural land, pasture land, or timberland soil.
        2. Agricultural land, pasture land, and timberland guidelines shall be developed based on the typical or most probable use of the soils for agricultural land, pasture land, and timberland in the region.
      1. Land that is enrolled in the Wetlands Reserve Program of the Natural Resources Conservation Service of the United States Department of Agriculture or in the Conservation Reserve Program of the Natural Resources Conservation Service of the United States Department of Agriculture shall be treated as agricultural land, pasture land, or timberland for purposes of valuation.
      1. Commercial land and residential land that are vacant shall be valued on their typical use.
      2. The county assessor shall determine what the typical use of vacant commercial land or residential land is by considering the primary current use of adjacent lands.
      1. For real property in which the mineral estate and surface estate are severed, if a surface estate owner's use and enjoyment of the surface estate are adversely affected by a severed mineral estate owner's use and enjoyment of the severed mineral estate, or a surface estate owner's utility of the surface estate interest is adversely affected by a severed mineral estate owner's use and enjoyment of the severed mineral estate, the assessment of the surface estate is as follows:
        1. For agricultural land, pasture land, or timberland, a well drilled for the purpose of extracting minerals from a severed mineral estate creates a presumption of diminished utility of the surface estate, and the assessed value of the affected surface estate shall reflect the minimum productivity value of the surface estate and shall be reduced accordingly; and
        2. For residential property and commercial property, a well drilled for the purpose of extracting minerals from a severed mineral estate creates a presumption of diminished utility of the surface estate, and the assessed value of the affected surface estate shall reflect the diminished utility of the surface estate and reduced accordingly.
      2. Unless market evidence indicates an increase in land area value or an increase in value of the surface estate, the portion of the surface estate for which a presumption of diminished utility exists under subdivision (d)(1) of this section shall not exceed one (1) acre per well, and the value of the surface estate for that one (1) acre shall be assessed in an amount not to exceed twenty-five percent (25%) less than surrounding comparable property.
      1. The county equalization board may reclassify land upon proof of change in use of the land or upon proof that the land is not eligible for classification under the provisions of this section.
      2. The owner may appeal the decisions of the county assessor and county equalization board as provided by law for other appeals from the county assessor or county equalization board.
      1. In devising and developing methods of assessing and levying the ad valorem property tax on real property, the Assessment Coordination Division shall annually develop and publish valuation tables and other data that shall be used by county assessors for assessing lands qualifying under this subchapter.
        1. Each year the division shall update the valuation tables for assessing lands qualifying as agricultural land, pasture land, and timber land in time for counties to use the updated tables when they finish their countywide appraisals.
        2. When there is a countywide reappraisal, a county shall assess agricultural land, pasture land, and timberland based upon the updated land values in the valuation tables issued for the assessment year.
        1. The division by rule shall develop appropriate formulas reflecting the productivity valuation of the land based upon income capability attributable to agricultural land, pasture land, and timberland soils.
        2. Each year the division shall develop and calculate capitalization rates by using appropriate long-term federal security rates, risk rates, management rates, and other appropriate financial rates.
        3. However, the capitalization rate developed under subdivision (f)(3)(B) of this section shall not be less than eight percent (8%) nor more than twelve percent (12%).
      2. By October 15 of each year, the division shall report to the Legislative Council any changes to any part of the formula used to determine the value of land or the capitalization rate.
      1. Whenever land that has qualified for valuation on use or productivity under subsection (b) of this section is converted to another use, the person converting the land to another use shall notify, immediately and in writing, the county assessor of the change in use.
      2. At the appropriate time, the county assessor shall extend the taxes on the land based on the change in use and shall certify to the county collector the amount to be collected.
      1. If any person fails to give written notice of a change in use of land as required in subsection (g) of this section, the person shall be subject to a penalty in an amount equal to three (3) years of taxes on the land at the value in the new use or conversion use.
      2. Any penalty so assessed shall be included in the taxes on the land for the year in which the failure is discovered and shall be a lien on the land to the same extent as any other taxes levied on the land.
    2. Any funds derived from penalties assessed pursuant to subsection (h) of this section shall be deposited into the county general fund to be used for the purposes prescribed by law.
    1. As used in this section, “fringe school districts” means those school districts whose boundaries extend across one (1) or more county lines.
    2. When there is a statewide or countywide reappraisal of property for ad valorem tax purposes pursuant to court order or pursuant to law enacted by the General Assembly, the millage rollback for fringe school districts will be implemented as follows: That part of the school district in a county reappraised first will be rolled back in accordance with procedures prescribed in this subchapter, and taxes will be levied at that millage rate until such time as a similar reappraisal is completed in the other counties in which the school district lies and the millage in those counties is rolled back in accordance with this subchapter at which time the rolled back millage for the first part of the school district that has been reappraised and the rolled back millage for each succeeding part of the school district that has been reappraised shall be averaged, weighted by the percentage of the total assessment of the school district that each part consists of in order to create a weighted average millage, and thereafter the weighted average millage for the school district will be the millage rate levied in the whole school district.
    1. The county assessor in each county may employ such personnel as the county assessor deems necessary to reappraise taxable property in the county in compliance with the court order in Arkansas Public Service Commission, et al. v. Pulaski County Board of Equalization, et al. and to thereafter maintain a proper appraisal of property in the county.
        1. The Assessment Coordination Division shall prescribe an appropriate course of training to qualify persons employed by elected county assessors to conduct appraisals of property for ad valorem tax purposes and shall issue a certificate of qualification to each person who successfully completes the course of training or is otherwise determined by the division to be qualified to conduct appraisals.
          1. Only those persons who hold certificates of qualification issued by the division as provided for in this section shall be employed by the elected county assessors for or undertake the appraisal of property for ad valorem tax purposes in any county.
          2. This section only applies to persons employed by elected county assessors, and the elected county assessors are not themselves required to be certified by the division.
      1. The division shall seek the advice of the Legislative Council prior to the final adoption of training criteria for persons to be employed by county assessors to appraise property for ad valorem tax purposes.
      1. The Arkansas Public Service Commission shall prepare and furnish, at the proper time, to the county clerks in this state copies for all lists, blanks, and records to be used in the assessment, extension, and collection of taxes, and the county clerk shall have all lists, blanks, and records made at the expense of the county.
      2. This subsection shall not apply to poll tax receipts.
      3. No lists, blanks, or records shall be used by any official in the assessment, extension, or collection of taxes except as shall have had the approval of the commission.
    1. On or before January 1 of each year, the county clerk shall furnish to the county assessor all lists, blanks, and records necessary for the assessment of all real and personal property for the year, all of them to be prepared as provided by law unless otherwise directed by the commission.
    1. On or before January 1 of each year, the county clerk of each county shall make out and deliver to the county assessor, in books prepared for that purpose, an abstract containing a description of each tract or lot of land situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks. In the case of real estate situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks, the county clerk shall proceed according to the plan or plat thereof, commencing with the lowest number of the block and lot of each city, town, or addition and proceed numerically with all lots in a block and all blocks in a city, town, or addition until completed.
    2. On or before January 1 of each year, the county clerk shall make out and deliver to the county assessor, in books prepared for that purpose, an abstract containing a description of each tract of land situated outside the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks. In case of acreage land, he or she shall commence the abstract in the lowest number in township and range in his or her county, and in the northeast corner of each township, and shall proceed numerically with all sections, townships, and ranges in his or her county first setting down all the subdivisions of each section as they belong to different individuals or the whole section together if owned by one (1) person and not divided on account of parcels being of different value.
    3. The abstract in each case shall show the name of the owner, if known, and the number of acres or quantity of land contained in each call.
    4. No failure to observe any of these requirements shall be held to vitiate any assessment if the lands are so described as to be identified.
    1. To facilitate the assessment and collection of taxes, the county court of each county shall procure and keep a land book or books of maps of all the townships or fractional townships in the county. The book shall be well-bound and shall be deposited in the office of the county clerk.
    2. The court shall also procure a list of the lands owned by the United States and by this state in their respective counties.
    1. The school directors of each and every school district in the state shall furnish to the county assessor a complete list, showing addresses alphabetically arranged, of all persons who under the law should be taxpayers in the school district.
    2. The various school boards are authorized to pay out of the school funds of the district the expense incurred in the preparation of the list.
    1. The Secretary of the Department of Finance and Administration shall institute a system in which the county assessor and the county collector shall notify the secretary that a vehicle owner has assessed a vehicle and has paid all personal property taxes that were due by the preceding October 15. Upon receipt of the notification, the secretary shall renew the vehicle license.
    2. Notification by the county assessor and the county collector under subsection (a) of this section shall be in the form of an electronic notation placed on or removed from the Department of Finance and Administration's vehicle license record by the county assessor and the county collector denoting that the vehicle has been assessed and that the vehicle owner does not owe delinquent personal property taxes.
    1. The county recorder of deeds and mortgages in each county shall, each year, prepare and file with the county assessor a list, alphabetically arranged in the name of the grantor, or a copy of the following which were recorded during the year, to wit:
      1. All deeds, mortgages, and contracts for the sale of realty;
      2. All timber deeds or contracts, or mineral or royalty deeds; and
      3. All leases or contracts of every kind, whether oil and gas or other things leased.
    2. If a list is furnished, it shall reflect the last known business address of the person owning the rights under the contract, deed, or lease, the date, and the consideration.
    1. When an instrument for the conveyance of real estate, save mortgages and deeds of trust, is tendered to the county recorder for recording, that official shall obtain from the person tendering the instrument the name of the grantee and the address to which the grantee wants future tax statements mailed.
    2. At least weekly the county recorder shall transmit the duplicate statements to the county assessor, who shall keep the original and immediately transmit the copy to the county clerk, together with his or her instructions as to any change in legal description or separation of parcel as they then appear on the tax books.
    3. In counties operating under the unit tax ledger system, the county assessor shall immediately transmit the copy to the county collector, together with his or her instructions as to any change in legal description or separation of parcel as they then appear on the tax books.
    4. Both the county assessor and the county clerk shall make proper entry of the information so received into their permanent records.
    5. Where a plat is offered for record to the county recorder, the person so offering the plat shall tender to the circuit clerk the original for recording and one (1) copy of the plat, which shall be certified to by the circuit clerk, showing the book and page of the records wherein the original is recorded. The certified copy shall be transmitted by the circuit clerk to the county assessor within five (5) days from the date of recording.
    1. Any person, partnership, company, or corporation having any person in their employ shall be required to give the name of the employee to the county assessors, county sheriffs, or county collectors of the various counties when demanded by the county assessors, county sheriffs, or county collectors in their official capacity.
    2. Any person, partnership, company, or corporation, their agents, attorneys, or managers that violate this section shall be guilty of a violation and shall be fined in any sum not less than ten dollars ($10.00) nor more than one hundred dollars ($100).
    1. All lists required in §§ 26-26-705, 26-26-707, and 26-26-708 by clerks, school directors, and others shall be filed with the county assessors of the various counties on the first Monday in January of each year.
    2. The lists shall be filed in triplicate:
      1. One (1) to be forwarded by the county assessor to the Arkansas Public Service Commission;
      2. One (1) to be filed with the county clerk; and
      3. One (1) to be retained by the county assessor.
      1. The list retained by the county assessor shall be checked by him or her and used in his or her endeavor to place all taxable property on the books.
      2. When the county assessor's books are closed, the county assessor shall certify all of the lists to the county court, and the certificate shall show whether the individuals have made an assessment and if not, why not, and what effort the county assessor has put forth in each case to secure an assessment by each individual on the lists.
      1. Upon conviction, any individual, school director, tax commissioner, county assessor, or other person charged with a duty under this section who fails to perform the duty is guilty of a violation and shall be fined in any sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
      2. Upon conviction for a second offense, in the case of any public official, the public official shall be removed from office.
    3. The commission shall prepare such forms as will ensure the effective execution of this section.
    1. The original assessment lists as made out, sworn to, and delivered to the county assessor by any person or property owner of the county and assessment lists made by the county assessor prior to the date on which the assessment rolls are delivered to the county clerk, together with copies of all assessment lists as made out, sworn to, and delivered to the county clerk by the county assessor or any other person after the assessment rolls have been delivered to the county clerk and before the county collector closes his or her books, shall remain in the office of the county assessor for at least four (4) years after the date upon which they were made, during which time the lists shall be filed by the county assessor in such manner that they may be readily referred to and utilized.
    2. Copies of all assessment lists as made by the county assessor or any other person subsequent to the date on which penalty attached for failure to assess and before the assessment record is required to be filed with the county clerk shall be delivered to the county clerk at the same time the assessment record is filed, which lists, together with the original of all assessment lists as may be filed with the county clerk by the county assessor or any other person after the assessment record has been delivered to the county clerk and before the county collector closes his or her books, shall be preserved by the county clerk for the purpose of checking the tax books to determine if all penalties for failure to assess at the proper time have been properly designated and extended.
        1. Each year, the county assessor shall, on or before the third Monday in August, file with the county clerk his or her report of assessment of all real property of the county situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks.
        2. Each year, the county assessor shall, on or before the third Monday in August, file with the county clerk his or her report of assessment of all real property of the county situated outside the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks.
      1. On or before July 31, the county assessor shall deliver the personal property assessment report or roll book to the county clerk, to be arranged in alphabetical order according to school districts and showing separately in alphabetical order the persons residing outside of incorporated cities and towns and of persons who are residents of incorporated cities and towns of the same school district.
      2. In addition to the other requirements of this section, the county assessors shall be required to list poll and personal property owners to the respective political township and ward in which they reside at the time of the assessment.
      1. These reports shall be filed in books or records of the kind and character furnished to the county assessor by the county clerk for that purpose, unless otherwise directed by the Arkansas Public Service Commission, and each report shall show each item of property by totals in number and value.
      2. The county clerk shall not receive these reports unless they are in a neat and legible manner, and to each of which the county assessor shall have attached his or her oath in the following words:
        1. It shall be the duty of each county assessor to make out, from such sources of information as shall be in his or her power, a correct and pertinent description of each tract or lot of real property in his or her county, so that it can be identified and distinguished from any other tracts or parts of tracts.
        2. The county assessor shall place a value on each subdivision of a block, and the improvements thereon, in cities and towns, or additions thereto, notwithstanding the fact that one (1) individual owns the whole block.
        1. When the county assessor shall deem it necessary to obtain an accurate description of any separate tract or lot in his or her county, he or she may require the owner or occupier to furnish it with any title papers he or she may have in his or her possession.
          1. If the owner or occupier, upon demand made for it, shall neglect or refuse to furnish a satisfactory description of the parcel of real property to the county assessor, he or she may employ the county surveyor to make out a description of the boundaries, and location thereof, and a statement of the quantity of land therein.
          2. The expense of the survey shall be returned by the county assessor to the county clerk, who shall add the expense of the survey to the tax assessed upon the real property, and it shall be collected by the county collector of the county with the tax. When collected, it shall be paid on demand to the person to whom it is due.
      1. The county assessor shall, in all cases, from actual view or from the best sources of information within his or her reach, determine, as near as practicable, the true value of each separate tract and lot of real property in his or her county, according to the rules prescribed by this chapter for valuing property.
      2. The county assessor shall note in his or her plat book, separately, the value of all houses, mills, and other buildings which shall be carried out as a part of the value of the tracts.
      1. It is the duty of a county assessor to strictly follow the provisions of § 26-26-717.
      2. When it is otherwise impossible to correctly describe real property on the assessment roll according to its ownership, it is the duty of a county assessor to petition the county court for a survey of the real property under the provisions of § 26-26-802.
      1. In any case where a tract of land is irregularly described, the county assessor must require the owner to bring in his or her deed.
      2. The tract of land must then be taken from the deed, and the tract of land to be assessed must be platted on a plat book furnished the county assessor by the county court of each township in the county.
      3. The county assessor shall draw a plat of the tract of land and shall number it as “Lot No. ” and then enter the tract of land on the assessment book as “Lot No. of ” describing the section or portion of the section in which the tract of land is found.
    1. It shall be sufficient to advertise the tract of land for failure to pay taxes by the number of the lot assigned to the tract of land.
      1. If for any reason a part description of the real property assessed is made by the county assessor, the reason must be stated, and the county assessor shall immediately certify his or her inability to properly describe the real property to the Commissioner of State Lands on or before October 1 in each year.
        1. The Commissioner of State Lands shall assemble the certificates of part description received from the county assessors and certify them to the Attorney General, who shall file his or her petition in the circuit court having jurisdiction.
        2. The circuit court is vested with jurisdiction upon the petition to issue any form or writ necessary for ascertaining the correct ownership description of the real property involved.
    2. Upon petition of the Attorney General addressed to the circuit court having jurisdiction, any county assessor who shall fail or refuse to comply with the provisions of § 26-26-718 and this section shall be removed from office and shall only be reinstated when he or she has performed the duties enjoined but shall receive no compensation for correcting any of his or her acts of omission or commission.
      1. It shall be the duty of the county assessor of each county of the State of Arkansas, after extending the valuation against each parcel of land, lot, and part of lot on his or her assessment record to check it, and for all land, lots, and parts of lots that have been certified to the Commissioner of State Lands for the nonpayment of the delinquent taxes due, he or she shall stamp or write by the valuation “State of Arkansas”, and also the year which it was certified to the state.
      2. The county assessor shall take the list of the land, lots, and parts of lots that have been redeemed or purchased which is certified to the county clerks by the Commissioner of State Lands January of each year and show on his or her assessment record the disposition of the land, lots, and parts of lots.
    1. If the county assessor of the various counties of the State of Arkansas needs a starting point, he or she can write the Commissioner of State Lands for a list of the forfeited land, lots, and parts of lots in his or her county. Upon such request, the Commissioner of State Lands shall furnish him or her with a correct list of the forfeited land, lots, and parts of lots that have not been redeemed or sold in his or her office. The county clerks of the various counties of the State of Arkansas shall furnish the county assessor a list of the forfeited land, lots, and parts of lots that he or she sends to the Commissioner of State Lands yearly. In this way, the county assessor will have a complete record of the forfeited land, lots, and parts of lots for his or her assessment record.
    1. It is made the duty of the county clerks to promptly notify the county surveyors of their respective counties of all orders made by their respective county courts in pursuance of this subchapter.
    2. It is the duty of the county recorder of every county to provide and keep in his or her office a record book to be entitled “Record of Surveyor's Plats and Notes”, in which he or she shall accurately record or make a fair copy and transcript of every plat and the notes accompanying it returned to him or her by the county surveyor, as provided in this subchapter.
    1. Whenever it shall be made to appear to the satisfaction of the county court of any county that any section, or part of section of land in the county is in such small or irregular subdivisions as respects ownerships thereof, that the subdivisions or any of them cannot be accurately or conveniently designated in the assessment list or tax list in the usual or ordinary manner of designating subdivisions of land, it shall be the duty of the county court to order the county surveyor of the county to make and return to the county recorder of the county a plat, with accompanying marginal notes or footnotes, of the section or part section, whereupon it shall be the duty of the county surveyor to promptly comply with and obey such orders.
    2. In the plats and by the marginal or footnotes which he or she shall make and return, he or she shall show the relative size and position of the several subdivisions and the area of each, which subdivisions shall be designated as “lots” and shall be numbered consecutively in like manner and order, insofar as practicable, as is done in the case of fractional sections in the surveys and plats made under the direction of the United States Bureau of Land Management.
    1. The county assessors, deputy county assessors, and Arkansas Public Service Commission, or any other officer charged under the law with assessing taxes, shall, when each and every person presents himself or herself to make and prepare a property list, administer the following oath:
    2. Provided, however, this oath shall not be required of any individual assessing his or her real or personal property by telephone under § 26-26-1114 or where the county assessor lists the property for the property owner as permitted in § 26-26-903.
    1. Every person of full age and sound mind shall list the real property of which he or she is the owner, situated in the county in which he or she resides, and the personal property of which he or she is the owner.
    2. The county assessor may relieve the person of this requirement by listing the current year's assessment of real property from a previous property list or from a changed list based on a reassessment of the value of the real property of the owner.
    1. Property held under a lease for a term exceeding ten (10) years belonging to a religious, scientific, or benevolent society or institution, whether incorporated or unincorporated, and school, seminary, saline, or other lands shall be considered, for all purposes of taxation, as the property of the person holding them and shall be listed as such by the person or his or her agent, as in other cases.
      1. For purposes of assessing and collecting ad valorem tax, property owned by the state shall be considered the property of the lessee if the property is held under a lease for:
        1. An ongoing commercial or residential purpose; and
        2. A term of actual use or occupation that exceeds ninety (90) days.
      2. Except as provided in this subsection, a lessee of property owned by the state as described under subdivision (b)(1) of this section shall pay ad valorem tax on the property held under the lease for any tax year during which the lease for the property is in effect as of January 1 of that tax year.
        1. Within thirty (30) days of executing a lease described in subdivision (b)(1) of this section, the state shall provide written notification of the lease to the county assessor for the county in which the lease property is located.
        2. The written notification required under subdivision (b)(3)(A) of this section shall state the:
          1. Name and address of the lessee;
          2. Term of the lease; and
          3. Description of the leased property.
      3. This subsection does not apply to property owned and leased by the state and used:
        1. For the purpose of housing any one (1) or more of the following:
          1. Students or faculty, or both, of a state institution of higher education;
          2. Officials or employees, or both, of a state entity; or
          3. Official guests of a state entity;
        2. By a private person or entity for the purpose of providing a service to or on behalf of a state entity;
        3. For academic, research, or athletic facilities or purposes;
        4. For business and technology incubators or similar facilities;
        5. For manufacturing or industrial facilities or purposes, including without limitation industrial facilities as described in § 14-164-701; or
        6. By a state entity or nonprofit entity, including without limitation an organization that is otherwise exempt from taxation.
    1. If any person shall have converted moneys, credits, or other personal property in the year preceding January 1 of the year in which he or she is required to assess his or her property into bonds or other securities of the United States or this state not taxed, and shall hold or control the bonds or securities when he or she is required to list his or her property, he or she shall list the monthly average value of the moneys, credits, or other property held or controlled by him or her.
    2. Any indebtedness of the persons represented by him or her, created by investment in the bonds or other securities, shall not be deducted from the amount of credits in making up his or her list for taxation.
    1. No person shall be required to list a greater portion of any credits than he or she believes will be acquired or can be collected, nor any greater portion of any obligation given to secure the payment of rent than the amount of rent that shall have accrued on the lease and shall remain due and unpaid at the time of listing.
    2. No person shall be required to include in his or her statement, as a part of the personal property, moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise, which he or she is required to list, any share or portion of the capital stock or property of any company or corporation which is required to list or return its capital and property for taxation in this state.
      1. The valuations as set out in any assessment list required under the provisions of this subchapter to be delivered to the county assessor by the property owner shall not be held to be conclusive as to the value of the property so listed, and the county assessor may make such assessment of the property as he or she may deem just and equitable.
        1. The county assessor, in each instance where he or she raises the valuation of any property which has been listed with him or her as by law required, shall deliver to the property owner or his or her agent a duplicate copy of the adjusted assessment list, or he or she shall notify the property owner or his or her agent by first class mail, which notice shall state separately the total valuation of real and personal property as listed by the property owner and as fixed by the county assessor, and shall advise that the owner may, by petition or letter, apply to the county equalization board for the adjustment of the assessment as fixed by the county assessor.
        2. All applications shall be made to the county equalization board on or before the third Monday in August.
      1. For the purpose of enabling the county assessor to determine just and equitable values of property, he or she is authorized, and it shall be his or her duty, to enter upon and make such personal inspection thereof as he or she shall deem necessary.
      2. Any person shall, when called upon by the county assessor, be required to answer upon oath and furnish proof demanded as to purchases, sales, transfers, improvements, accounts, notes, stocks, bonds, bank notes, bank deposits, invoices, insurance carried, or any and all other information requested and pertaining to the location, amount, kind, and value of his or her own property or that of another person.
    1. The Arkansas Public Service Commission, the county assessor, or any one of them who may be required under the law to make assessment rolls shall, in addition to their duties as required by law, specifically inquire of the maker of each list the following:
      1. The number, kind, and value of each automobile he or she owns;
      2. The cash or funds on hand, and money on time deposit or otherwise in any depository, in or out of the state;
      3. The taxable securities of every kind and their value, in or out of the state, he or she may own;
      4. What stock, bonds, or mortgages owned and their value, in or out of the state;
      5. What leases or mineral deeds are owned and the value of them that are contemplated in §§ 26-26-1109 and 26-26-1110;
      6. What timber, deeds, or contracts contemplated by § 26-3-205 he or she owns and the value of them; and
      7. Any other property of any kind whatsoever that has a value about which questions have not been asked.
    2. The taxpayer shall then be required to assess the properties disclosed by investigation.
    1. If any person required to list property for taxation is prevented by sickness or absence from giving to the county assessor the list of property as prescribed by this subchapter, the person, or his or her agent having charge of the property, may, at any time before the making out of the tax books by the county clerk, make out and deliver to the county assessor of the county a statement of the same as required by this subchapter. The county assessor shall in such case make an entry in the returns of the proper city, town, ward, or school district and correct the items in the return made by him or her, as the case may require.
    2. No such statement shall be received by the county assessor from any person who has refused or neglected to make oath to his or her statement when required by the county assessor under the provisions of this subchapter, nor from any person unless he or she has first made and filed with the county clerk an affidavit that the person required to list the same was absent from his or her county without design to avoid listing his or her property or was prevented by sickness from giving to the county assessor the required statement when called upon for that purpose.
    1. Whenever the county assessor of any county has, during any year at the time of making the assessment of real property subject to taxation, failed to enter in a separate list pertinent descriptions of all burying grounds, public school houses, houses used exclusively for public worship, institutions of purely public charity, public buildings, and property used exclusively for any public purpose, libraries, and grounds used exclusively for school purposes, and property which by the Arkansas Constitution is exempted from taxation, the lots or tracts of land on which the institution or public building is situated, and which by law are exempted from taxation, and the value thereof, the county assessor of the county, or his or her successor in office, is authorized and empowered, at any time and during any year thereafter, upon discovery of the omission to make out separate lists, giving their description and the value of all the described property which has been omitted from the list.
      1. The list of the property, together with the valuation thereof, shall be filed with the county clerk of the county and by him or her entered upon the proper assessment book of the county.
      2. When the list of the omitted property has been filed by the county assessor, or his or her successor in office, with the county clerk in the county where the property is situated, it shall have the same force and validity as if entered, made, and filed at the proper time as prescribed by law.
    1. All real estate and tangible personal property shall be assessed for taxation in the taxing district in which the property is located and kept for use.
        1. Tangible personal property in transit for a destination within this state shall be assessed only in the taxing district of its destination.
        2. Tangible personal property in transit through this state, including raw materials from within or outside this state used in the manufacturing process and tangible personal property manufactured, processed, or refined in this state and stored for shipment outside the state, shall, for purposes of ad valorem taxation, acquire no situs in this state and shall not be assessed for taxation in this state.
        3. The owner of tangible personal property in transit through this state and of tangible personal property in transit for a destination within this state may be required, by the appropriate county assessor, to submit documentary proof of the in-transit character and the destination of the property.
      1. As used in this section, “tangible personal property in transit through this state” means tangible personal property:
        1. Which is moving in interstate commerce through or over the territory of this state;
        2. Which is consigned to or stored in or on a warehouse, dock, or wharf, public or private, within this state for storage in transit to a destination outside this state, whether the destination is specified when transportation begins or afterward, except where the consignment or storage is for purposes other than those incidental to transportation of the property; or
        3. Which is manufactured, processed, or refined within this state and which is in transit and consigned to, or stored in or on, a warehouse, dock, or wharf, public or private, within this state for shipment to a destination outside this state.
    1. The county assessor shall, on or before August 1 of each year, deliver to the clerk of the county equalization board his or her completed assessment tax record, showing the total assessment of the county as made by the county assessor. He or she shall also furnish such other information as the county equalization board may request of the county assessor.
    2. The county assessor shall, on or before the third Monday in August of each year, report to the Arkansas Public Service Commission, by total of items and value, the total assessment of the county as made by the county assessor and the commission and in the manner as directed by the commission, as to kind, character, number, and value of all tangible property assessed for taxation in the county and such other information as the commission may demand of the county assessor.
    1. A purchaser of a manufactured home or mobile home shall report the purchase of each new or used manufactured home or mobile home to the county assessor of the appropriate county where the manufactured home or mobile home will be located.
    2. The report shall include:
      1. The name of the purchaser;
      2. The purchaser's address;
      3. The date on which the purchase was made; and
      4. Other information as may be deemed necessary by the county assessor.
    1. All lands that shall have been purchased from owners, the property of whom or which was by law exempt, all new improvements over the actual value of one hundred dollars ($100), and all town or city lots as may have been platted, as the case may be, subsequent to January 1 of any year shall be subject to assessment and taxation for the year immediately following the purchase, improvement, or platting.
        1. In each year, all real estate or improvements on real estate which have been damaged by fire, flood, tornado, or other act of God, if the property is then on the assessment record at a value determined prior to the damage and if the damage occurred prior to the date the county assessor is required by law to deliver his or her report of assessment to the county clerk, then that property shall be revalued and assessed by the county assessor.
        2. Nothing in this subsection shall be construed as requiring a county assessor to seek to identify property which may have been damaged.
      1. An appeal shall lie from the action of the county assessor as in the case of other property in that year assessed.
    1. All lands which may be annexed by any city or incorporated town which are being used for agricultural purposes shall be assessed as agricultural lands upon an acreage basis, regardless of the fact that any or all of the lands are embraced in a plat of a subdivision or other real estate development, and regardless of the fact that the lands may be zoned as commercial, industrial, or residential, and regardless of the fact that the lands may be adaptable to commercial, industrial, or residential uses.
    2. Agricultural purposes shall include lands which are presently used and have been used for a period of five (5) continuous years in a bona fide farming, pasture, or grove operation by the owner, lessee, or some person in his or her employ.
    3. Lands which have not been used for agricultural purposes prior to March 29, 1963, shall be prima facie subject to assessment on the same basis as assessed for the previous years, and any demand for a reassessment of such lands for agricultural purposes shall be subject to the scrutiny of the county assessor to the end that the lands shall be classified properly.
    4. When lands subject to this section cease to be used for agricultural purposes, the lands shall be assessed as other lands of the same character.
    5. For the purposes of this section, agricultural lands shall include dairy, livestock, poultry, and all forms of farm products and farm production.
      1. When the timber rights in any land shall, by conveyance or otherwise, be held by one (1) or more persons, firms, or corporations, and the fee simple in the land by one (1) or more other persons, firms, or corporations, it shall be the duty of the county assessor, when advised of the fact, either by personal notice or by recording of the deeds in the office of the recorder of the county, to assess the timber rights in the lands separate from the soil.
      2. In such a case, a sale of the timber rights for nonpayment of taxes shall not affect the title to the soil itself, nor shall a sale of the latter for nonpayment of taxes affect the title to the timber rights.
      1. It shall be the duty of the county assessor to assess timber rights with a description of the land on the real estate tax books, and the assessment shall be marked “timber”.
      2. Upon the nonpayment of taxes so assessed against the timber, it shall be advertised with a description of the land as “timber” giving the character or kind of the timber, in some newspaper as provided by law for nonpayment of taxes on land, and the timber shall be sold as provided by law for the sale of delinquent lands.
    1. When any timber rights assessed as set out in this section become forfeited on account of nonpayment of taxes, they shall, in all things, be certified to and redeemed in the same manner as is provided for the certification and redemption of real estate upon which taxes duly assessed have not been paid.
      1. The county assessor shall assess all producing mineral interests in the county.
        1. The county assessor shall assess the mineral interests in the land separate from the fee simple interest in the land when the:
          1. Mineral interests in the land are held by one (1) or more persons that are different from the person or persons holding the fee simple interest; and
          2. County assessor is advised of the separate holdings by the recording of a deed in the county recorder's office.
        2. When subdivision (a)(2)(A) of this section applies, a sale of the mineral interests for nonpayment of taxes shall not affect the title to the land itself, nor shall a sale of the land for nonpayment of taxes affect the title to the mineral interests.
    1. When any mineral rights assessed as set out in subsection (a) of this section become forfeited on account of nonpayment of taxes, they shall, in all things, be certified to and redeemed in the same manner as is provided for the certification and redemption of real estate upon which taxes duly assessed have not been paid.
      1. Because of the difficulty of ascertaining the value of a nonproducing mineral right and in order to ensure equal and uniform taxation throughout the state, a nonproducing mineral right has zero (0) value for the purpose of property tax assessment and is included in the value of the fee simple interest assessed.
      2. If the fee simple in the land and the nonproducing mineral right that has zero (0) value as determined under subdivision (c)(1) of this section are owned by different persons, there is no property tax due on the mineral right.
      3. For a nonproducing mineral right that has zero (0) value as determined under subdivision (c)(1) of this section, the mineral right owner may agree to a voluntary property tax assessment of the mineral right and pay a property tax according to rules established by the Assessment Coordination Division with the assistance of the Arkansas Assessors' Association.
      4. When a nonproducing mineral right begins producing minerals, the mineral right shall be assessed for tax purposes in accordance with rules established by the Assessment Coordination Division.
        1. If the Assessment Coordination Division determines that a county assessor has failed to assess mineral interests as required under this section, the Assessment Coordination Division shall notify the county assessor by certified mail with copies to the:
          1. County equalization board;
          2. County judge;
          3. County quorum court; and
          4. Reappraisal contractor, if applicable.
        2. In addition, the notice may provide that state reappraisal reimbursement funds to the county may be withheld pending the outcome of a hearing if a hearing is requested by the county assessor within thirty (30) days from the date of the notice.
        1. The county assessor may waive the right to a hearing and within thirty (30) days from the date of the notice agree to complete corrective action as required by the Assessment Coordination Division and return a signed and dated compliance verification form to the Assessment Coordination Division.
        2. Upon receipt of the signed and dated compliance verification form, the Assessment Coordination Division shall release any withheld state reappraisal reimbursement funds and resume regular payments.
      1. Termination of state reappraisal reimbursement funds may occur if the county assessor fails to:
        1. Either request a hearing or return the signed and dated compliance verification form within thirty (30) days from the date of the notice; or
        2. Complete the corrective action within the time provided in the compliance verification form.
        1. Except as otherwise provided in this subsection, if mineral rights are subject to a division order or declaration of interest, the division order or declaration of interest reflecting ownership interest as of January 1 of the assessment year shall be:
          1. In a common electronic workbook format established by the Assessment Coordination Division; and
          2. Submitted electronically by the distributor of the proceeds derived from the sale of minerals produced from the subject ownership interest to the county assessor annually by March 31.
        2. A producer or operator of ten (10) or fewer producing wells is not required to submit a division order or declaration of interest in an electronic format but shall submit a division order or declaration of interest reflecting ownership interest that is in substantial compliance with the format established by the Assessment Coordination Division under subdivision (e)(1)(A) of this section.
        1. A county assessor shall assess a penalty on a producer or operator equal to ten percent (10%) of the property taxes due on the mineral interests contained in a division order or declaration of interest that was not submitted as required under this subsection by April 15.
        2. A penalty assessed under this section shall be:
          1. Collected by the county collector in the same manner as other penalties related to property taxes; and
          2. Paid into a late assessment fee fund established on the books of the county treasurer for the county assessor.
      1. A division order or declaration of interest submitted to a county assessor under this subsection is exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq.
      2. A producer or operator that pays one hundred percent (100%) of the property taxes due on assessed mineral interests:
        1. Is not subject to the requirements of subdivision (e)(1) of this section; and
        2. Shall provide written notice of the producer's or operator's intent to submit a division order or declaration of interest under subdivision (e)(1) of this section that applies to the assessed mineral interests at least six (6) months before the division order or declaration of interest is submitted under subdivision (e)(1) of this section.
    1. All personal property owned by any church and held for, or used for, commercial, business, rental, or investment purposes or purposes other than church purposes shall be listed for assessment annually for ad valorem tax purposes between the first Monday in January and May 31 of each year.
    2. The church or its governing official or board shall annually list for assessment for ad valorem tax purposes all property which is not exempted from the tax under the provisions of this chapter.
      1. The Assessment Coordination Division shall promulgate reasonable rules to effectuate the provisions of this chapter.
      2. The division shall certify to the various county assessors and to each church in this state, upon request therefor, guidelines to be used in listing nonexempt property for assessment under the provisions of this chapter.
    1. For any assessment of personal property taxes after December 31, 1993, a taxpayer may assess the personal property taxes by mail, by telephone, or in person.
      1. The county assessor shall permit assessment of real and personal property of individuals by telephone without a signature verification under oath.
      2. The assessment by telephone shall not apply to business, commercial, and industrial real and personal property assessments.
        1. The county assessor shall mail to individuals assessing personal property by telephone, within five (5) working days from the date of assessment by telephone, an assessment containing a certification, which shall be provided by the county collector, indicating whether all required personal property taxes have been paid.
        2. The county assessor shall provide, if requested, proof of assessment for each motor vehicle assessed and proof of said payment information appropriate for motor vehicle registration renewal by mail.
    2. The Director of the Assessment Coordination Division shall promulgate rules for the administration of this section. The forms and rules promulgated by the director shall apply to all counties in the state.
      1. When a person acquires ownership of a portion of a parcel of realty during the time of year when the county assessor is not making changes in the assessment book, that person may request the county assessor to apportion the current assessment between the remaining portion of the parcel and that acquired by the person making the request; provided, however, that:
        1. All necessary deeds and papers proving ownership of the portion have been filed with the county recorder;
        2. No provision has been made for payment of taxes on the realty at the time the person acquired the portion; and
        3. The request is made at least thirty (30) days before the last day to pay taxes on the assessment year in question.
      2. The request shall be in writing, signed by the owner, and shall include a complete legal description of the entire parcel and a complete legal description of the parcel being conveyed.
    1. The provisions of this section shall not apply to any parcel of realty on which there is an actual tax delinquency at the time the request for allocation is made.
    2. The county assessor shall allocate the assessment within thirty (30) days after the request and shall provide the information included in the allocation to the county collector.
      1. The county collector, after receiving notification of the allocation, shall accept payment in full toward any prior year's taxes currently due according to the values provided in the notification.
      2. Payment may be applied to the current tax bill as a partial payment, or a separate parcel number may be assigned to the portion and receipted to the new number.
    3. Payment shall be considered as satisfying the tax lien for that portion of the prior year's taxes as legally defined in the notification.
        1. There is established a homestead property tax credit for each assessment year that reduces the amount of real property taxes assessed on the homestead of each property owner by three hundred seventy-five dollars ($375).
        2. However, an assessment shall not be reduced to less than zero dollars ($0.00).
      1. Each property owner shall pay the reduced tax amount to the county.
      2. The homestead property tax credit adopted by this section shall be reflected on the tax bill sent to the property owner by the county collector.
      3. The county and taxing units within the county are entitled to reimbursement of the tax reduction resulting from the homestead property tax credit in accordance with § 26-26-310.
      1. Each county assessor is responsible for identifying the parcels of real property that are used as homestead residences before issuing tax bills.
        1. Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit.
          1. The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor.
          2. The circuit clerk shall not file the registration described in this subdivision (b)(2).
        2. The property owner may submit a registration for the property tax credit directly to the county assessor.
        1. The homestead property tax credit authorized by subdivision (a)(1) of this section is not allowed after October 15 of the year after the assessment.
        2. If October 15 falls on a Saturday, Sunday, or holiday observed by the United States Postal Service, the homestead property tax credit is allowed on, but no later than, the following business day that is not a holiday observed by the United States Postal Service.
        1. A parcel of real property shall qualify as a homestead prior to January 1 of the year after assessment to be eligible for the property tax credit.
        2. Once a parcel of real property is determined to be eligible for the property tax credit, the parcel of real property shall remain eligible for that year regardless of a change in the use of the parcel of real property during the year.
        3. Under no circumstance may a property owner claim more than one (1) homestead property tax credit per calendar year.
        1. The parties to a transfer of real property may prorate, as between themselves, the property tax credit and the benefits of the property tax credit by agreement of the parties.
        2. If a parcel of real property qualifies for the property tax credit, the property tax credit shall apply regardless of who or what entity pays the property tax.
        1. When real property is transferred, the purchaser of the real property shall notify the county assessor of the new use of the real property.
        2. The notification may be by affidavit provided by the purchaser of the real property or on a form provided by the county assessor.
      2. The Division of Vital Records shall send to the county assessor by electronic mail a monthly report listing the residents of that county who have died.
      1. No property owner shall claim more than one (1) homestead property tax credit for each year.
        1. If the county assessor determines that a property owner has claimed more than one (1) homestead property tax credit in a year, in addition to repayment of the homestead property tax credit, the designated preparer of the tax books shall extend a penalty of one hundred percent (100%) of the amount of the unlawfully claimed homestead property tax credit.
          1. If the property owner has unlawfully claimed a homestead property tax credit in a county other than the county where his or her lawfully claimed homestead property tax credit was claimed, then the property owner shall pay the entire amount of the unlawfully claimed homestead property tax credit and the penalty at the time of payment of the property owner's taxes.
          2. If the property owner has unlawfully claimed a homestead property tax credit in the same county that he or she lawfully claimed a homestead property tax credit, then the property owner shall elect to either:
            1. Pay the entire amount of the unlawfully claimed homestead property tax credit and the penalty at the time of payment of the property owner's taxes; or
            2. Not claim a homestead property tax credit on any property in the county or on any other property in the state for two (2) years for each year that the credit was claimed unlawfully.
        2. In order to qualify for the homestead property tax credit after repayment of an unlawfully claimed homestead property tax credit and payment of a penalty, the property owner shall register with the county assessor according to § 26-26-1118(b)(2)(A).
      1. Every property owner shall report to the county assessor a change in eligibility to claim a property tax credit or a change in use of the property prior to January 1 of the year following the change.
      2. If the county assessor determines that a property owner has failed to report a change in the eligibility to claim a property tax credit or has failed to register a required change in the use of the property, the designated preparer of the tax books shall extend, in addition to repayment of the unlawfully claimed homestead property tax credit, the correct property tax due along with a penalty of one hundred percent (100%) of the amount of the unlawfully claimed homestead property tax credit.
        1. If the property owner has unlawfully claimed a homestead property tax credit in a county other than the county where his or her lawfully claimed homestead property tax credit was claimed, then the property owner shall pay the entire amount of the unlawfully claimed homestead property tax credit and the penalty at the time of payment of the property owner's taxes.
        2. If the property owner has unlawfully claimed a homestead property tax credit in the same county that he or she lawfully claimed a homestead property tax credit, then the property owner shall elect to either:
          1. Pay the entire amount of the unlawfully claimed homestead property tax credit and the penalty at the time of payment of the property owner's taxes; or
          2. Not claim a homestead property tax credit on any property in the county or on any other property in the state for two (2) years for each year that the credit was claimed unlawfully.
      1. Penalties assessed under this section shall bind the real property and shall be entitled to preference over all judgments, executions, encumbrances, or liens, whenever created, until the penalties are repaid.
      2. Penalties collected under this section shall be remitted to the county treasurer to be credited to the county general fund.
      1. The debt owed for the repayment of an unlawfully claimed homestead property tax credit assessed under this section shall bind the real property and shall be entitled to preference over all judgments, executions, encumbrances, or liens, whenever created, until it is repaid.
      2. A homestead property tax credit repaid under this section from a person who was not entitled to claim a credit shall be remitted to the Treasurer of State for deposit into the Property Tax Relief Trust Fund.
      1. The property owner may appeal to the county court the determination by a county assessor that:
        1. The property owner shall repay an unlawfully claimed homestead property tax credit;
        2. The property owner shall pay penalties; or
        3. Any other determination that the property owner has violated this section.
      2. To appeal the determination by a county assessor, the property owner must file a petition with the county court within thirty (30) days from the date of the determination by the county assessor.
      3. After the petition is filed, the county court shall set a hearing within thirty (30) days after the filing of the petition.
      4. At the hearing, the property owner and county assessor shall present evidence to support their positions.
      5. The county court shall provide the property owner, county assessor, and county clerk with the county court's decision in writing within ten (10) business days after the hearing.
      6. The property owner or county assessor may appeal the county court's decision to circuit court within thirty (30) days after the date of the decision.
      1. No penalties under this section shall be imposed against a property owner for an unlawfully claimed property tax credit after the expiration of three (3) years from the date the property tax credit was claimed.
      2. No repayment requirement under this section shall be imposed against a property owner for an unlawfully claimed property tax credit after the expiration of three (3) years from the date the property tax credit was claimed.
      3. This section does not alter the property owner's deadline to claim the homestead property tax credit as provided in § 26-26-1118(b)(3).
    1. As used in Arkansas Constitution, Amendment 79, “disabled person” means a person who:
      1. Is disabled for purposes of Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., as in effect on January 1, 2003, for any period during the calendar year;
      2. Is a permanently and totally disabled veteran as defined by 38 C.F.R. § 4.1 et seq., Part IV, as in effect on January 1, 2003; or
      3. Has received permanent and total disability insurance benefits for any period of time during the calendar year.
      1. When a disabled person or a person sixty-five (65) years of age or older sells his or her real property, the purchaser shall not be entitled to claim any reduction to the real property's assessed value.
      2. On or after January 1 of the year following the date of the sale, the county assessor shall assess the real property at its full market value, unadjusted for assessment limitations required by Arkansas Constitution, Amendment 79.
    1. To determine whether a rollback of millage rates is required under Arkansas Constitution, Article 16, § 14, each taxing entity shall compare the adjusted taxable assessed values of the real and personal property in the current year to the adjusted taxable assessed values of the real and personal property in the preceding year.
    2. To calculate the millage rollback, the adjusted taxable assessed value of the real property in the current year shall be compared to the adjusted taxable assessed value of real property in the preceding year.
    1. As used in this subchapter and in Arkansas Constitution, Amendment 79:
      1. “Assessed value” means twenty percent (20%) of the appraised value of the real property;
        1. “Homestead” means the dwelling of a person that is used as his or her principal place of residence with the contiguous land, excluding all land valued as agricultural land, pasture land, or timberland.
        2. “Homestead” includes:
          1. A dwelling owned by a revocable or irrevocable trust and used as the principal place of residence of the person who formed the trust; and
          2. A dwelling owned by an irrevocable trust and used as the principal place of residence of a beneficiary of the trust, as evidenced by submitting a signed, notarized, and file-marked copy of the irrevocable trust to the county assessor;
      2. “New construction” means changes to real property that have occurred to real property already on the assessment roll;
      3. “Newly discovered real property” means real property that has never been on the assessment roll or that has changed use; and
        1. “Property owner” means a person who is:
          1. The owner of record of real property or the mortgagee of the real property;
          2. A buyer under a recorded contract to purchase real property; or
          3. A person holding a recorded life estate in real property.
        2. “Property owner” includes the previous record owner of tax-delinquent real property that has vested in the State of Arkansas in care of the Commissioner of State Lands under § 26-37-101(c) if the previous record owner continues to occupy the residence subject to his or her right of redemption.
    2. The Assessment Coordination Division may by rule define the term “substantial improvements” and any other term necessary to administer this subchapter.
    1. When a person sells his or her real property, the county assessor shall assess the real property at twenty percent (20%) of the appraised value at the next assessment date after the date of the transfer of title to the real property.
    2. The owner of real property to whom title is transferred by a sale is not entitled to claim any limitation on the assessed value of the real property until the second assessment date after the date of the transfer of title to the real property.
    3. This section does not apply to any transfer of title to real property claimed as a homestead in which the owner or beneficiary of the homestead retains a life-estate interest in the homestead following the transfer of title to the real property.
      1. A homestead used as the taxpayer's principal place of residence that is purchased or constructed on or after January 1, 2001, by a person who is disabled or by a person sixty-five (65) years of age or older shall be assessed for property tax thereafter based on the lower of:
        1. The assessed value as of the date of purchase or construction; or
        2. A later assessed value.
      2. When a person becomes disabled or reaches sixty-five (65) years of age on or after January 1, 2001, the person's homestead that is used as the taxpayer's principal place of residence shall thereafter be assessed based on the lower of:
        1. The assessed value on the person's sixty-fifth birthday;
        2. The assessed value on the date the person becomes disabled; or
        3. A later assessed value.
      3. If a person is disabled or is at least sixty-five (65) years of age and owns a homestead used as the taxpayer's principal place of residence on January 1, 2001, the homestead shall be assessed based on the lower of:
        1. The assessed value on January 1, 2001; or
        2. A later assessed value.
    1. Residing in a nursing home does not disqualify a person from the benefits of subsection (a) of this section.
    2. If a homestead is jointly owned and one (1) of the owners qualifies under subsection (a) of this section, then all owners shall receive the benefits of subsection (a) of this section.
    3. Subsection (a) of this section does not apply to substantial improvements to real property.
    1. The Assessment Coordination Division shall:
      1. Establish mandatory guidelines for county assessors to follow in:
        1. Identifying property that is exempt from ad valorem taxation; and
        2. Assessing business inventory;
      2. Adopt rules necessary for:
        1. The general guidance and assistance of county assessors in identifying exempt property and assessing business inventory; and
        2. Determining when a county is noncompliant with the rules established by the division under this section;
      3. Confer with and assist county assessors in identifying exempt property and assessing business inventory to ensure that all assessments of property are just and uniform throughout the state;
      4. Prescribe any forms necessary to assist county assessors in uniformly identifying exempt property and assessing business inventory;
      5. Monitor each county's compliance with the rules established by the division under this section; and
      6. As soon as is practicable, notify immediately the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, when a county is determined to be noncompliant with the rules established by the division under this section.
    2. A county assessor shall:
      1. Assess property in accordance with the rules adopted by the division; and
      2. Use only a form that is prescribed or approved by the division to identify exempt property or assess business inventory.
    3. Upon receiving notification under subdivision (a)(6) of this section, the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, may recommend to the General Assembly that a noncompliant county's funds under § 26-26-310(b)(2)(C) that are to be allocated to the county assessor be reduced or withheld until the county becomes compliant under this section.
      1. Each separate parcel of real property shall be valued at its true market value in money, excluding the value of crops growing thereon.
      2. The price at which the real estate would sell at auction or at a forced sale shall not be taken as the criterion of the true value.
    1. Each tract of land belonging to the state or to any county, city, town, or charitable institution, whether incorporated or unincorporated, and saline, swamp, seminary, school, or mineral lands held under a lease exceeding five (5) years and not exceeding ten (10) years shall be valued at the price the county assessor believes could be obtained at a private sale for the leasehold estate.
      1. Personal property of any description shall be valued at the usual selling price of similar property at the time of listing.
      2. If any personal property shall have no well-fixed or determined value in that locality at the time, then it shall be appraised at such price as in the opinion of the county assessor could be obtained at that time and place.
    2. Investments in bonds, stocks, joint-stock companies, or otherwise shall be valued at their value in money, and the quotations and selling price thereof may be considered in determining their values.
    3. Money, whether in possession or on deposit in this state, or out of it subject to the order or control of the person listing, shall be entered in the statement at the full amount thereof.
    4. Every credit for a sum certain, payable either in money, property of any kind, labor, or service, shall be assessed according to its true value. If for a specified number or quantity of any article of property, for a certain amount of labor, or for services of any kind, it shall be assessed according to its true value.
    5. Annuities or moneys receivable at a stated period shall be rated at the price which they may be worth in money.
    6. Where the fee of the soil in any tract, parcel, or lot of land is in any person, natural or artificial, and the right to any mineral therein is in another, it shall be valued and listed agreeably to the ownership, in separate entries, and taxed to the parties owning it respectively.
        1. The market value of an off-premises advertising sign shall be determined using the cost approach to avoid the inclusion of exempt intangible personal property in the valuation.
        2. The market value of an off-premises advertising sign shall not be determined using the income approach or the sales comparison approach.
      1. An adjustment shall not be made for the traffic count or other factors relating to the location of an off-premises advertising sign in determining the market value of an off-premises advertising sign.
        1. The depreciation period used in determining the market value of an off-premises advertising sign shall not exceed twenty (20) years for a static off-premises advertising sign and seven (7) years for a digital off-premises advertising sign.
        2. For purposes of depreciation, the residual value of an off-premises advertising sign shall not exceed twenty percent (20%) of the cost of the off-premises advertising sign.
          1. To promote uniform taxation of off-premises advertising signs, straight-line depreciation shall be used in determining the market value of an off-premises advertising sign.
          2. The effective age of an off-premises advertising sign shall not be used for purposes of depreciation.
    1. Any person owning or having in his or her possession or under his or her control, within this state, with authority to sell it, any personal property purchased with a view to its being sold at a profit, or which has been consigned to him or her from any place out of this state, to be sold within this state, shall be held to be a merchant for the purpose of this valuation.
      1. The property shall be listed for taxation and in estimating the value the merchant shall take the average value of the property in his or her possession or under his or her control during the year immediately preceding January 1 of the year in which the assessment is made.
      2. If the merchant has not been engaged in the business for one (1) year, then he or she shall take the average valuation during such time as he or she shall have been so engaged.
      3. If the merchant is commencing business, he or she shall take the value of the property at the time of assessment.
    1. Every person who shall purchase, receive, or hold personal property of any description for the purpose of adding to the value thereof by process of manufacturing, refining, rectifying, or by combination of different materials, with a view of making a gain or profit by so doing, shall be held to be a manufacturer. He or she shall make out and deliver to the county assessor a sworn statement of the amount of his or her other personal property subject to taxation, also including in his or her statement the average value, estimated as provided in § 26-26-1203, of all articles purchased, received, or otherwise held for the purpose of being used, in whole or in part, in any process or operation of manufacturing, combining, rectifying, or refining which from time to time he or she shall have on hand during the year next previous to the time of making the statement, if so long he or she shall have been engaged in such manufacturing business, and, if not, then during the time he or she shall have been so engaged.
    2. Every person owning a manufacturing establishment of any kind and every manufacturer shall list as a part of his or her manufacturer's stock the value of all engines and machinery of every description, used or designed to be used for the indicated purpose.
    1. Housing owned and operated by a nonprofit corporation or association for occupancy or use by an elderly person or a person with a disability, the construction of which is financed by the United States, shall be valued, for purposes of assessment, on the basis of the equity owned in the housing by the nonprofit corporation or association.
    2. As used in this section, unless the context otherwise requires:
      1. “Elderly person” means a person sixty-two (62) years of age or older and the spouse of that person;
      2. “Equity” means the market value of the housing less any mortgage indebtedness to the United States;
      3. “Housing” means structures consisting of eight (8) or more residential units for occupancy and use by elderly or handicapped persons, including essential contiguous land and related facilities, as well as all personal property of the corporation or association used in connection with the facilities;
      4. “Nonprofit corporation or association” means any corporation or association incorporated under the laws of this state not otherwise exempt from general ad valorem, real, and personal property taxes, operating a housing facility or project qualified, built, and financed by the United States under § 202 of the National Housing Act of 1959, as amended, 12 U.S.C. § 1701q; and
      5. “Person with a disability” means any adult having an impairment which is expected to be of long, continued, and indefinite duration; is a substantial impairment to his or her ability to live independently; and is of a nature that such ability to live independently would be improved by more suitable housing conditions and shall include an adult who is a person with a developmental disability.
    1. The General Assembly recognizes that motor vehicles are unique in regard to the procedure for assessment of personal property taxes, registration and titling, and payment of sales taxes and that there is a correlation between sales of motor vehicles by motor vehicle dealers and the valuation of motor vehicle inventory.
    2. The method of determining the average value of inventory of motor vehicle dealers in accordance with § 26-26-1201 and § 26-26-1203(b) shall be as provided in this section.
    3. The assessment of motor vehicle inventories of motor vehicle dealers shall be determined by calculating the monthly average of the number of sales of new and used motor vehicles by the dealer and multiplying the average by the unit inventory value.
    4. The unit inventory value shall be based on the typical new and used car values by name of manufacturer as set forth in the Arkansas Commercial Personal Property Appraisal Manual published in the year prior to the year of assessment by the Assessment Coordination Division.
    1. Whenever, upon the complaint made to the Arkansas Public Service Commission by the county judge, county assessor, or county equalization board of any county or upon the commission's own investigation and motion, and a summary hearing in that behalf had, it shall be made to appear satisfactorily to the commission that the assessment of the property in any county, or district or subdivision thereof, is not in substantial compliance with law and that the interest of the public will be promoted by a reassessment of the property, then the commission shall have authority, at its discretion, to order a reassessment of all or any part of the taxable property in the county, or district or subdivision thereof, to be made by the local assessment officers, or to cause a reassessment to be made by a person to be recommended by the county judge and appointed by the commission for that purpose.
    2. Due notice of the time and place fixed for a hearing upon any complaint made as indicated shall be mailed, at least fifteen (15) days before the time fixed for the hearing, to the county judge and county assessor of the county affected, and the county judge shall immediately cause the notice to be published, at the expense of the county, in a newspaper having a general circulation in the county and district.
    1. Any person appointed to reassess the property or any class of property in any county, or district or subdivision thereof, shall have all the power and authority given by law to deputy county assessors and shall perform all the duties and be subject to all restrictions and penalties imposed by law upon deputy county assessors.
      1. Appointees shall have access to all public records and files which may be needful or serviceable in the performance of the duty imposed and while engaged in this duty shall be entitled to have the custody and possession of the assessment roll containing the original assessment in the district and all other statements and memoranda relative thereto.
      2. A blank assessment roll, if necessary, and all property statements and other blank forms needful for the purpose of reassessment shall be furnished by the county clerk at the expense of the county.
    1. For their services in making any reassessment of property pursuant to the order of the Arkansas Public Service Commission, local assessment officers shall receive no compensation other than the salary or fees allowed by law for making the original assessment; but when the person making any reassessment does not officially serve the county, or district or subdivision thereof, compensation for which service is elsewhere provided, then each person so employed shall receive five dollars ($5.00) per day for each day's services.
    2. Claims for services shall be presented, audited, and paid as are other claims against the county.
      1. Prior to any countywide reappraisal of property for ad valorem tax purposes, the county assessor or the county assessor's employees or agents shall notify the property owners of the county assessor's intent to reappraise at least forty-five (45) calendar days prior to the reappraisal.
      2. Prior to any reappraisal of an individual's property for ad valorem tax purposes other than a countywide reappraisal under subdivision (a)(1) of this section, the county assessor or the county assessor's employees or agents shall give the property owner reasonable notice of the county assessor's intent to reappraise the property owner's property.
      3. The notice required by this section may be accomplished by publication in newspapers, by radio, by television, by direct mail, or by any other reasonable means.
      1. If a reappraisal under subsection (a) of this section results in an increase in the assessed value of the property, the county assessor shall note in writing on the assessment records the:
        1. Justification for the increase;
        2. Date the property was inspected; and
        3. Details of the inspection.
      2. The records of the appraisal shall be public records subject to inspection under the Freedom of Information Act of 1967, § 25-19-101 et seq.
    1. Any property owner whose property is reappraised under this section may appeal to the county equalization board, and the county equalization board is required to grant an adequate hearing on the appeal.
      1. Except as provided in subdivision (a)(2) of this section, property shall not be reappraised for ad valorem tax purposes more than one (1) time every five (5) years unless the reappraisal is the result of a countywide reappraisal.
      2. Producing mineral interests shall be reappraised annually for ad valorem tax purposes.
    1. In the event that there is a countywide reappraisal of property for ad valorem tax purposes in any county, taxes shall not be assessed on the basis of the reappraised value of any property in the county until all taxable property in the county has been reappraised.
    2. When a countywide reappraisal of property is completed in any county and taxes are first assessed on the newly reappraised values, the provisions of Arkansas Constitution, Amendment 59, and § 26-26-401 et seq. relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applicable.
    3. Newly discovered real property, new construction and improvements to real property, and personal property shall be listed, appraised, and assessed as otherwise provided by law until the countywide reappraisal of property is completed.
    1. It is the purpose and intent of this subchapter to reduce the number of persons avoiding the payment of tangible personal property taxes by moving from one county to another within the state or by moving outside the state between the time of assessing property for taxes and the time of collecting taxes thereon by establishing a system that reduces the time period from the date of assessment to the date of collection.
    2. It is further the intent of this subchapter that, when personal property taxes are paid in advance as provided for in this subchapter, the normal procedures carried out by the various county officials and state officials with respect to property taxes shall continue in effect, and, if it is determined through the normal procedures presently in effect that any person who paid personal property taxes in advance overpaid such taxes, the overpayment will be refunded to the taxpayer, and that, if the advance payment of the tangible personal property taxes by a taxpayer is an underpayment of the tax, the taxpayer will be billed for the additional amount due.
    3. It is further the intent of this subchapter that the taxpayer will be required to furnish proof of payment of tangible personal property taxes as a condition for registering or renewing the registration of any motor vehicle.
    1. Nothing contained in this subchapter shall be construed to limit or restrict the right of a taxpayer to make application to the equalization board for adjustment of the tangible personal property assessment or the right of the taxpayer to obtain judicial review of the final determination of the equalization board.
    2. Nothing contained in this subchapter shall be construed to limit or restrict or alter the authority and responsibility of any county official, the county equalization board, the county court, or any other agency or person having responsibility with respect to the assessment and collection of ad valorem taxes on tangible personal property.
    1. A penalty of ten percent (10%) of the taxpayer's total tangible personal property taxes shall be imposed on any taxpayer who fails or refuses to assess his or her tangible personal property on or before May 31 of each year.
    2. A penalty of ten percent (10%) of the taxpayer's total tangible personal property taxes shall be assessed if the taxpayer fails or refuses to pay tangible personal property taxes on or before October 15 next following the assessment of the tangible personal property for taxes.
      1. A taxpayer shall annually assess his or her tangible personal property for ad valorem taxes during the period from January 1 through May 31.
        1. Taxable tangible personal property of a new resident and a new business established between January 1 and May 31 and taxable tangible personal property acquired by a resident during the period from January 1 through May 31, except tangible personal property acquired during the period of May 2 through May 31, shall be assessable without delinquency within thirty (30) days following the date of its acquisition.
        2. All taxable tangible personal property assessable during this period shall be assessed according to its market value as of:
          1. January 1 of the year of the assessment; or
          2. The date of acquisition if the tangible personal property was acquired during the period of January 2 through May 31 of the year of assessment.
      2. The ten percent (10%) penalty for delinquent assessment shall not apply to tangible personal property becoming eligible for assessment through May 31 if the tangible personal property is assessed on or before May 31, except that:
        1. If May 31 of an assessment year falls on a Saturday, Sunday, or postal holiday, then the last day to assess without incurring a penalty shall be the following business day; and
        2. Tangible personal property acquired during the period of May 2 through May 31 shall be assessable without penalty within thirty (30) days following the date of its acquisition.
        1. Taxable tangible personal property of a person moving his or her residence from Arkansas, and taxable tangible personal property disposed of by a resident and a business, during the period between January 1 and May 31, if assessed for that year, shall be removed from the assessment rolls, and, if not assessed, shall not be deemed assessable for that year.
        2. Before removal of the tangible personal property from the assessment rolls, it shall be the responsibility of the property owner to provide the county assessor with notification, and, upon request from the county assessor, proof of the disposal.
      3. The tangible personal property referred to in subdivisions (a)(1)-(4) of this section shall not include the inventory of a commercial establishment because specific provisions for the assessment of the inventory of a commercial establishment is provided elsewhere in this Arkansas Code.
        1. The county assessor may list, value, and assess tangible personal property for a period extending through July 31 of each year of assessment.
        2. Assessment of tangible personal property after July 31 shall be according to provision of existing law.
    1. Personal property taxes are payable each year between the first business day in March and October 15 inclusive.
    1. It is the purpose of this subchapter to clarify the law relating to the taxation of state and national banks, savings and loan associations, and building and loan associations chartered under state and federal law and to simplify and to broaden the tax base applicable to these financial institutions.
    2. It is the intent of this subchapter to repeal the capital stock tax and, in lieu thereof, to tax state and national banks, savings and loan associations, and building and loan associations under existing tax laws generally applicable to business corporations.
    1. Financial institutions shall be subject to the ad valorem real property tax levied pursuant to the authority granted in the laws of this state, to the same extent as other owners of real property in this state.
    2. The assessment of taxes upon the real property of national banking associations and state banks and trust companies shall be had and done in the manner provided by law for the assessment of all other real property by whomsoever owned.
    1. Bridge, savings banks, mutual loan, building, transportation, construction, and all other companies, corporations, or associations incorporated under the laws of this state, or under the laws of any other state, and doing business in this state, other than the companies, corporations, or associations whose taxation is specifically provided for in this subchapter, shall, through their president, secretary, principal accounting officer, or agent, annually, during the month of July, make out and deliver to the county assessor of the county where the company or corporation is located or doing business a sworn statement of the capital stock setting forth particularly:
      1. The name and the location of the company or association;
      2. The amount of capital stock authorized, and the number of shares into which the capital stock is divided;
      3. The amount of capital stock paid up, its market value, and, if no market value, then the actual value of the shares of stock;
      4. The total amount of all the indebtedness, except the indebtedness for current expenses, excluding from the indebtedness the amount paid for the purchase or improvement of the property; and
      5. True valuation of all tangible property belonging to the company or corporation. The schedule shall be made in conformity to instructions and forms as may be prescribed by the Auditor of State and shall also show in what county the property is situated.
    2. Corporations doing business in this state engaged exclusively in the manufacture of cotton or fiber goods or yards, which is commonly called the textile manufacturing business, having mills located in this state, and other corporations to the extent of their assets invested in textile mills located in this state, shall not be required to comply with the provisions of this section for a period of seven (7) years after the location of its textile mills in this state.
      1. The county assessor shall, annually, at least by June 20, deliver to the president, secretary, accounting officer, or agent of any such company, corporation, or association located in or doing business in the county a notice in writing to return the schedule by July 31 next ensuing.
        1. Any president, secretary, principal accounting officer, or agent of any companies or corporations, upon whom notice shall have been served, willfully neglecting or refusing to make the return by July 31 next ensuing after the delivery of the notice, shall be guilty of a misdemeanor and, upon conviction, shall be fined in any sum not exceeding one hundred dollars ($100) or imprisoned not exceeding three (3) months, or both.
        2. The county assessor shall, from the best information he or she can obtain, make out and enter upon the proper assessment roll a list, with the valuation of all tangible and intangible property belonging to a defaulting company or corporation subject to taxation by the provisions of this section, with fifty percent (50%) penalty.
    1. For purposes of this subchapter, property is used or held for use in the operation of a company as such if it is owned or controlled by a utility or carrier and is being utilized, is capable of utilization, in the operation of a utility or carrier, or is being constructed for future utilization in the utility or carrier operation. However, leased property controlled by a utility or carrier shall not be assessed by a county assessor in this state if the property is assessed for ad valorem tax purposes by the Tax Division of the Arkansas Public Service Commission.
      1. All property, both real and personal, used or held for use in the operation of the company as such, of carriers, by pipeline, railroads, street railway, express, sleeping car, intercounty bus lines, intercounty motor freight, airline, ferry, interurban, toll bridge, toll road, or water transportation, and by similar carriers, and all telegraph, telephone, electric power, gas, water, and other similar companies shall be assessed for ad valorem taxation by the division.
      2. Each such company doing business or authorized to do business in Arkansas and owning or having control of property, or owning or having control of property in Arkansas, shall, through its owner, president, secretary, general manager, or agent having control of the company's affairs in this state, on or before March 1 of each year, make a statement in writing to the division showing all property subject to assessment and taxation in this state. The statement shall truly show the amount, kind, and value of the property as of January 1 next preceding the filing of the annual statement. However, in the case of motor carriers, the statement and information shall be filed annually with the division on or before March 31.
    1. Each company, as defined in § 26-26-1601, shall annually on or before March 1, make and deliver to the Tax Division of the Arkansas Public Service Commission, in such form as the division may prescribe, a statement of the proper official, agent, or person of the company, showing in detail the following facts:
      1. Name of company;
      2. The status of the company, whether person, firm, company, copartnership, association, or corporation, and under the laws of what state or country organized or incorporated;
      3. Location of its principal office within or without Arkansas;
      4. Name and post office address of the owner, president, secretary, general manager, and agent having control of the company's affairs in this state;
      5. The par value of all outstanding capital stock and funded debt of every kind, the market and, if no market, the actual value on January 1 next preceding;
      6. The total gross revenues, expenses, net revenues, and net income, separately, from utility operation, nonutility operation, and nonoperating properties, for the next preceding calendar year, both for the State of Arkansas and all states if the company operates in states other than Arkansas, in which latter case Arkansas's stated proportion of the total revenues, expenses, and income must include not only revenues, expenses, and income arising from intrastate business but also the state's due proportion of the revenues, expenses, and income from interstate business;
      7. The total value of all real and personal property owned or controlled by the company and situated outside of Arkansas on January 1 next preceding showing separately that part used in connection with the daily operations of the company and that part used otherwise, if there is any;
      8. A detailed statement of all real and personal property owned or controlled by the company and situated in Arkansas on January 1 next preceding, giving the description, location, and value thereof, and showing separately that part used in connection with the daily operations of the company and that part used otherwise, if there is any; and
      9. Such other and additional information as to ownership, amount, kind, location, operation, and value of property owned or controlled as the division may require.
    2. The official, agent, or person of the company submitting the required statement shall make and sign, on the face of the required statement, the following declaration:
      1. Unless for good cause shown, should any company fail to file on or before March 1 the complete statement required of it by §§ 26-26-1602 and 26-26-1603, the time for making the return shall be extended for not more than sixty (60) days.
      2. The Tax Division of the Arkansas Public Service Commission shall advise the company in writing of the delinquency, and, thereafter, should the company fail to file the statement before May 1, the division shall immediately report the delinquency to the commission, and should delinquency exist on May 31 of the assessment year, the commission shall certify the delinquency to the Secretary of the Department of Finance and Administration.
      1. By proper action in the name of the state, the secretary may recover from any delinquent company a penalty not to exceed one hundred dollars ($100) for each day's delinquency, beginning as of March 1 of the assessment year.
      2. In the alternative, the secretary may petition the commission for revocation of the certificate or permit of authority issued to the delinquent company to operate in the State of Arkansas.
      1. The Tax Division of the Arkansas Public Service Commission shall meet the first Monday in March of each year for the purpose of assessing the property which it is required to assess.
      2. Before entering upon the discharge of his or her duties, each commissioner shall subscribe to an oath that he or she will well and truly value and assess the property required to be assessed by the division. The oath shall be recorded at length upon a book used by the division for recording the assessments.
    1. The division shall examine the returns filed of all persons, firms, companies, copartnerships, associations, and corporations required by law to make them and, also, such information as it may have obtained in addition thereto, and shall determine the valuation of the items of property which it is required to value, and shall assess the property at its true and full market or actual value, or such percentage thereof as the division shall have so adopted and ordered.
    2. In valuing the property of persons, firms, companies, copartnerships, associations, and corporations, the division shall take into consideration the value of all the property of the company as a unit, whether all or only a part of it is within this state.
    1. The returns of the persons, firms, companies, copartnerships, associations, and corporations whose assessment is provided for by this subchapter shall not be held to be conclusive as to the value of the property so returned, but the Tax Division of the Arkansas Public Service Commission may make such assessment of the property as it may deem just and equitable.
    2. The division shall ascertain the value of all property, tangible and intangible, including good will, easements, and franchises, except the right to be a corporation, it being the purpose of this subchapter to include in the valuation every element that adds value to the property.
    1. The valuation of the taxable property, both real and personal, of all persons, firms, companies, copartnerships, cooperatives, associations, and corporations required by law to be assessed by the Tax Division of the Arkansas Public Service Commission shall be made upon the consideration of what a clear fee simple title thereto would sell for under conditions which usually govern the sale of property of that character.
    2. The division in determining fair market value, insofar as other evidence and information in its possession does not make it appear improper or unjust for it to do so, shall ascertain and determine as nearly as it can and consider:
      1. Original cost less depreciation, replacement cost less depreciation, or reconstruction cost less depreciation. Proper consideration may be made for functional or economic obsolescence and for operation of nonprofitable facilities which necessitate regulatory body approval to eliminate;
        1. The market value of all outstanding capital stock and funded debt, excluding current and deferred liabilities, except accumulated deferred income taxes, investment tax credits, and items associated therewith. A premium or discount to capital stock may be considered above or below the current market price where evidence warrants.
        2. In cases where the outstanding capital stock is not traded or is not capable of reasonably accurate determination, book values may be substituted;
          1. The utility operating income after deduction of all actual income taxes paid, capitalized in the manner and at such rates as shall be just and reasonable, but in no event shall the capitalization rate be less than six percent (6%). The deduction from income of deferred income taxes, investment tax credits, and items associated therewith is specifically prohibited for purposes of this subsection.
          2. The utility operating income after the deduction of all income tax expense capitalized in a manner which recognizes the utility's ability to defer income taxes, utilizing accumulated deferred income taxes, investment tax credits, and items associated therewith as cost-free debt in the capital structure to determine the capitalization rate.
        1. The utility operating income to be capitalized should be determined by reference to the company's historical income stream, appropriately weighted, with consideration to the future income stream.
        2. Directory sales revenue produced in this state is considered attributable to utility real and personal property located in this state and is to be appropriately considered in determining operating income; and
      2. Such other information as evidence to value as may be obtained that will enable the division to determine the fair market value of the property of the companies. The fair market value of affiliated properties separately assessed and the nonoperating properties of such companies shall be ascertained and determined as nearly as possible and deducted from the total unit value of the properties of the companies if the properties are included in the unit value. Insofar as it is possible or practical to do so, the same method of evaluating the properties of the companies separately assessed, or nonoperating properties, shall be used as was used in determining the unit value of the company.
    3. The division, in valuing property pursuant to subsection (b) of this section for broadband communications entities, shall exclude all intangible property acquired after January 1, 2015, in accordance with the following provisions, provided that the values determined pursuant to this subsection shall be correlated to a final unit value and then allocated to the state:
      1. The cost approach should be calculated based on the total original cost of the tangible and intangible operating property, less depreciation and amortization reflected on the company's balance sheet;
      2. The cost approach value determined pursuant to subdivision (c)(1) of this section shall be adjusted to determine the “adjusted cost indicator value”. The adjusted cost indicator equals the value determined pursuant to subdivision (c)(1) of this section reduced by all intangible property acquired after January 1, 2015. Intangible assets acquired after January 1, 2015, shall not include assets previously included in an Arkansas property tax valuation;
      3. The value determined pursuant to subdivisions (b)(2) and (3) of this section shall be adjusted by multiplying each by a fraction as follows; provided, however, that this adjustment shall only apply if the original cost less depreciation of the tangible property located in this state is less than or equal to the adjusted value allocated to this state:
        1. The numerator equals the “adjusted cost indicator value” determined pursuant to subdivision (c)(2) of this section; and
        2. The denominator equals the original cost of the operating assets less depreciation as reflected on the balance sheet determined pursuant to subdivision (c)(1) of this section;
      4. For purposes of this section, intangible property includes but is not limited to goodwill, trademarks and trade names, licenses, established customer base and lists, patents, franchises, rights and proprietary technology, but, solely for purposes of this subsection, intangible property does not include software; and
      5. For purposes of this subsection, “broadband communications entities” means entities investing in intangible and tangible property to enhance broadband deployment and connectivity and shall include the following:
        1. Commercial mobile service as defined in § 23-17-403;
        2. Telecommunications providers as defined in § 23-17-403;
        3. Video service providers as defined in § 23-19-202; and
        4. Cable television systems as defined in § 26-26-1801.
    1. After the Tax Division of the Arkansas Public Service Commission shall have completed the original assessment of any property within its jurisdiction, it shall, as soon as practicable, give notice in writing by first class mail to the owner, officer, agent, or attorney making the statement, or, if no statement has been filed, then the notice is to be forwarded by first class mail to the party or company against which the assessment has been made, showing the total amount of the assessment.
        1. If the owner of the property so assessed is dissatisfied with the assessment made by the division, as approved by the Arkansas Public Service Commission or the State Highway Commission, the owner, within thirty (30) days from date of notice under subsection (a) of this section, may file with the appropriate commission a written petition for review of the assessment.
        2. The deadline for filing a written petition under subdivision (b)(1)(A) of this section may be extended for fifteen (15) days by order of the appropriate commission for good cause shown.
          1. A written petition under subdivision (b)(1)(A) of this section may be signed and filed by the property owner or an officer, agent, or attorney on the property owner's behalf.
          2. However, the appropriate commission may require that the property owner be represented by a licensed attorney in any filings or proceedings following the filing of the petition.
        1. All hearings on the petition shall be had before the appropriate commission or its agent on or before November 1 after assessment notice has been given. However, hearings on petitions for review of assessments of bus lines, motor carriers, airlines, water transportation companies, and private car companies, which assessments are certified to the Secretary of the Department of Finance and Administration for collection of tax, shall be to the appropriate commission or its agent, on or before December 31 of the assessing year.
        2. However, a hearing may be continued by order of the appropriate commission for a period not to exceed ninety (90) days.
      1. The company, on an appeal to the Pulaski County Circuit Court from an order or finding of the appropriate commission during the pendency of a final judgment after any appeal, shall pay all taxes due before the date on which penalties are attached based upon the original assessment.
      2. If on or prior to the final date for the payment of taxes without penalty the final judgment of the court shall have been entered, all taxes due shall be based upon the amount of the assessment arising under the final judgment.
      1. In the event any company shall not have paid on or before the final date for payment of taxes without penalty, all taxes due based upon the assessment record on the tax rolls on the final date, then the company shall be required to pay, in addition to these taxes and by reason of the delinquency, all penalties at the time provided by law, together with the costs as shall have accrued.
        1. At the time the payment is made, the company shall, in writing, advise the official to whom payment of taxes, penalties, and costs have been paid that a specified amount thereof is being paid under protest.
          1. Upon receipt of the payment and written protest, the collecting official shall cause the specified amount set forth by the company to be deposited into an ad valorem tax protest fund.
          2. If as a result of any final judgment the company shall be entitled to a refund, then the collecting official shall cause a refund, as determined by the final judgment to be made from the fund; and the remaining if any or the whole if no refund is due the company shall be distributed for the benefit of the respective taxing units entitled thereto.
    1. When the Tax Division of the Arkansas Public Service Commission has ascertained the assessed value of the property of any company which it is required to originally assess other than bus lines, motor freight, airlines, water transportation companies, and private car companies, the valuation shall be entered in detail in a record to be kept for that purpose.
    2. On or before July 15 of each year, it shall be the duty of the division to certify out, through its director or secretary, to the proper official of the respective counties in which is located or operated any property which it is required to assess so much of the value of the property as has been assigned or apportioned to each county and the districts and towns thereof.
    3. The official shall enter upon the proper record the assessments certified, and neither the county assessor, the county equalization board, nor the county court has authority to change the assessment so certified, and the taxes shall be extended and collection made on the assessment so certified in like manner as extension and collection is made in case of property locally assessed.
      1. Having ascertained and fixed the taxable value of the tangible and intangible property used or held for use in the operation of each intercounty bus line, intercounty motor freight, airline, or water transportation company, as required by law, the Tax Division of the Arkansas Public Service Commission shall levy and extend against each valuation the average rate of ad valorem levy prevailing throughout this state for the assessment year, and then ten (10) days before the due date, the division shall certify the tax to the Secretary of the Department of Finance and Administration for collection.
      2. The secretary shall immediately forward by first-class mail a notice showing the assessed valuation, applicable rate of levy, the amount of tax charged, and the due date of the tax charged to each company against which a tax has been extended and so certified.
      1. If the taxes are not paid on or before the date on which ad valorem taxes or any part of ad valorem taxes on personal property become delinquent, the secretary shall add a penalty of ten percent (10%) and mail a statement of the tax and penalty to each person, company, or corporation so delinquent.
        1. If the tax and penalty are not paid on or before the date on which a county collector may collect taxes by distraint, in lieu of the ten percent (10%) penalty, the secretary shall add to the tax a penalty of twenty-five percent (25%).
        2. The statement of tax and ten percent (10%) penalty from the secretary shall warn that if the tax and penalty are not paid within the time stated, in lieu of the ten percent (10%) penalty, a penalty of twenty-five percent (25%) will be added.
      1. For the purpose of collecting the taxes and penalties, in addition to the powers vested in the secretary for the collection of taxes, the secretary shall have all the powers vested in county collectors for the purpose of collecting delinquent personal property taxes.
      2. The secretary may petition the Arkansas Public Service Commission for revocation of the certificate or permit of authority issued to the delinquent company to operate in the State of Arkansas.
      1. Except as provided in subsections (c) and (d) of this section, all taxes and penalties collected under § 26-26-1614 shall be deposited into the State Treasury as trust fund income to the credit of the Ad Valorem Tax Fund.
        1. The Treasurer of State shall annually transmit to the respective county treasurers of the several counties of this state the proportionate part of the Ad Valorem Tax Fund coming from the source that the improved state highway mileage in each county bears to the improved state highway mileage in all counties, the highway mileage figures to be furnished by the Arkansas Department of Transportation on request of the Treasurer of State.
        2. The respective county treasurers shall prorate the amount so received among the several county funds, school districts, and municipalities of the county in the same ratio that the taxes received from the millage levy by each bore to the total taxes from the millage levy received by all county funds, school districts, and municipalities, according to the local county collector's settlement for the particular assessment year.
      1. So long as any agency of this state shall have the function or be charged with the duty of making audits of the records and accounts of the officers and employees of counties, municipalities, or school districts or so long as any agency of this state shall have the function or be charged with the duty of assessing the property referred to in this subchapter or so long as any agency of this state shall have the function or be charged with the duty of furnishing guidance, instruction, and assistance to the county assessor in the performance of his or her duties, then the aggregate total amount expended by this state in the performance and carrying out of the functions and duties indicated shall be a proper charge against the taxes and penalties credited to the Ad Valorem Tax Fund under subsection (a) of this section.
      2. It shall be the duty of the Chief Fiscal Officer of the State to annually determine the amount of these costs and to certify to the Treasurer of State the amount that the aggregate of the taxes and penalties exceeds these costs in order that the excess may be transmitted to the respective county treasurers as provided in this section.
      1. The first one hundred thousand dollars ($100,000) collected in taxes and penalties under § 26-26-1614 during each fiscal year shall be deposited into the State Treasury as nonrevenue receipts credited to the State Central Services Fund for use by the Revenue Division of the Department of Finance and Administration.
      2. No funds collected pursuant to § 26-26-1614 shall be withheld by the state if those funds were collected under the authority of Arkansas Constitution, Article 14, § 3(b)(1).
    1. When the taxes and penalties collected from water transportation companies under § 26-26-1614 are at least equal to two million five hundred thousand dollars ($2,500,000) for the calendar year, a portion of the revenues from the taxes and penalties shall be deposited as follows:
        1. On October 1 of each year, fifty thousand dollars ($50,000) shall be credited to the Miscellaneous Agencies Fund Account to be used exclusively by the Arkansas Waterways Commission.
        2. If the taxes and penalties collected are not at least equal to two million five hundred thousand dollars ($2,500,000) by October 1 of any year, the fifty thousand dollars ($50,000) credited under subdivision (d)(1)(A) of this section shall not be credited to the Miscellaneous Agencies Fund Account until the last day of the month in which the taxes and penalties collected are at least equal to two million five hundred thousand dollars ($2,500,000) for the calendar year; and
      1. Any taxes and penalties collected in excess of two million five hundred fifty thousand dollars ($2,550,000) each calendar year shall be deposited as follows:
        1. Seventy percent (70%) shall be credited to the Arkansas River Navigation System Fund; and
        2. Thirty percent (30%) shall be credited to the Arkansas Port, Intermodal, and Waterway Development Grant Program Fund to be used exclusively for the purposes stated in § 15-23-205.
    1. If any private car company shall fail or refuse to make and file the statement required by § 26-26-1702 within the time therein prescribed or shall fail or refuse to authorize in writing the use of the information and data submitted by the several railroads in determining its assessment, the Tax Division of the Arkansas Public Service Commission shall proceed to determine and fix the assessment of each car company on the basis of information reported to it by the several railroad companies and other information it may obtain. Each assessed valuation so determined shall be increased by ten percent (10%) as a penalty for failure to file its report, and taxes shall be extended and certified on the increased amount.
    2. If any railroad shall fail or refuse to make and file the statement as required in § 26-26-1703, it shall forfeit to the state, as a penalty for the failure or refusal, the sum of five hundred dollars ($500). Any failure or refusal shall be certified by the division to the Attorney General, whose duty it shall be to institute such action as he or she may deem proper for the collection of any penalty.
    1. The Tax Division of the Arkansas Public Service Commission, from the statements required by §§ 26-26-1702 and 26-26-1703 and other information it may obtain, shall ascertain and fix, as the basis for assessment, a uniform daily average travel of cars of each particular class and the valuation per car of each particular class and, accordingly, the number of cars required to make the total mileage traveled in this state within the year by the cars of each class of each private car company, and the assessed valuation of all cars of each car company.
    2. When the basis for assessment is determined, written notice shall be forwarded by first-class mail to each car company having filed the report required in § 26-26-1702, and each company, if dissatisfied with the basis for assessment so fixed, may file written petition for review within ten (10) days from date of the notice.
    1. The Tax Division of the Arkansas Public Service Commission, having ascertained and fixed the assessed valuation of the cars of each private car company as provided in § 26-26-1705, shall levy and extend against each valuation the average rate of ad valorem levy prevailing throughout the state for the respective assessment year, this rate to be determined as provided by § 26-26-1615, whereupon, the division, ten (10) days before due date, shall certify the tax so extended to the Secretary of the Department of Finance and Administration for collection.
    2. The secretary shall immediately forward by first-class mail to each private car company against which a tax has been extended and so certified a notice showing the assessed valuation, the applicable rate of levy, the amount of tax charged, and the due date thereof.
      1. If the taxes are not paid on or before the date on which taxes, ad valorem, or any part thereof, on personal property become delinquent, the secretary shall add a penalty of ten percent (10%) and mail to each company so delinquent a statement of the tax and penalty.
        1. If the tax and penalty are not paid on or before the date on which county collectors are authorized to collect taxes by distraint, the secretary shall, in lieu of the ten percent (10%) penalty, add to the tax a penalty of twenty-five percent (25%) and certify the tax and penalty to the Attorney General for collection.
        2. The secretary's statement of tax and ten percent (10%) penalty shall warn that if the tax and penalty are not paid within the time therein stated, in lieu of the ten percent (10%) penalty, a penalty of twenty-five percent (25%) will be added, and the tax and penalty shall be certified to the Attorney General for collection.
    3. For the purpose of collecting these taxes and penalties, the secretary or the Attorney General, in addition to the powers in them vested for the collection of taxes, shall have all the powers vested in county collectors for the purpose of collecting delinquent personal property taxes.
      1. All taxes and penalties collected under the provisions of this subchapter shall be deposited into the State Treasury as trust fund income, to the credit of the Ad Valorem Tax Fund.
        1. The Treasurer of State shall annually transmit to the respective county treasurers of the several counties of the state the proportionate part of the fund coming from the source that the assessed value of the single or first main track railroad mileage in his or her respective county bears to the assessed value of the single or first main track railroad mileage in all counties, the ratios to be furnished by the Tax Division of the Arkansas Public Service Commission on request of the Treasurer of State.
        2. The respective county treasurers shall allocate the amount so received among the several county funds and the school districts and municipalities of his or her county in which is located main track railroad mileage, in the ratio that millage taxes payable to each on the assessed value of single or first main track railroad mileage for the respective assessment year, when separately computed, bears to the total millage taxes payable to all such funds, districts, and municipalities from this source, when separately computed.
      1. So long as any agency of this state has the function or is charged with the duty of making audits of the records and accounts of the officers and employees of counties, municipalities, or school districts, or so long as any agency of this state has the function or is charged with the duty of assessing the property referred to in this subchapter, or so long as any agency of this state has the function or is charged with the duty of furnishing guidance, instruction, and assistance to the county assessor in the performance of his or her duties, then the aggregate total amount expended by this state in the performance and carrying out of the functions and duties indicated shall be a proper charge against the taxes and penalties credited to the fund under subsection (a) of this section.
      2. It shall be the duty of the Chief Fiscal Officer of the State to annually determine the amount of these costs and to certify to the Treasurer of State the amount that the aggregate of the taxes and penalties exceeds these costs in order that the excess may be transmitted to the respective county treasurers as provided in this section.
    1. Except as provided in subsection (b) of this section, each county in the State of Arkansas shall be required to appraise all market value real estate normally assessed by the county assessor at its full and fair market value at a minimum of one (1) time every three (3) years.
      1. Except as provided in subdivision (b)(2) of this section, any county that has completed a reappraisal under subsection (a) of this section or completed a reappraisal between the years 2002 through 2004 shall not be required to commence or complete an additional reappraisal under the three-year cycle but shall be required to appraise all real property normally assessed by the county assessor at its full and fair market value at a minimum of one (1) time every five (5) years from the previous assessment.
        1. If, as a result of a three-year reappraisal cycle, the new market value real estate assessment is greater than fifteen percent (15%) from the market value real estate assessment in the county in the year preceding the beginning of the reappraisal cycle, the county shall be required to complete its next reappraisal at a minimum of one (1) time every three (3) years from the previous assessment until the new market value real estate assessment is less than fifteen percent (15%) from the market value real estate assessment in the year preceding the beginning of the reappraisal cycle, at which point the county shall be placed into a five-year reappraisal cycle.
        2. If a county in a five-year reappraisal cycle has a new market value real estate assessment that is twenty-five percent (25%) greater than the market value real estate assessment in the county in the year preceding the beginning of the reappraisal cycle, the county shall be required to complete its next reappraisal at a minimum of one (1) time every three (3) years from the previous assessment until the new market value real estate assessment is less than fifteen percent (15%) from the market value real estate assessment in the year preceding the beginning of the reappraisal cycle, at which point the county shall be placed into a five-year reappraisal cycle.
        3. The market value real estate assessments shall be calculated by comparing the total values, unadjusted for the assessment increase limitations required under Arkansas Constitution, Amendment 79.
        1. At the time that a county submits its market value real estate assessments to the Assessment Coordination Division, the county may appeal its new or continued placement into a three-year reappraisal cycle if the increased market value real estate assessment is a result of a single property improvement.
          1. The division shall place a county in a five-year reappraisal cycle if the division concludes that the increase in the new real estate market value assessment is a result of a single property improvement in the county.
          2. This decision by the division shall be made within thirty (30) calendar days after receiving the appeal.
      2. Each county shall provide the division with the previous and new market value real estate assessments on or before October 1 of the year in which it is required to have completed reappraisal.
      3. This section does not affect the requirement that producing mineral interests be reappraised annually under § 26-26-1308.
      1. The county assessor or other official or officials designated by law shall compare the assessed value of each parcel under a reappraisal or reassessment that is completed in 1999 or later to the assessed value of the parcel for the previous year.
      2. In the first countywide reappraisal performed after January 1, 2001, by counties subject to Arkansas Constitution, Amendment 79, § 2:
        1. If the assessed value of the parcel increased, then the assessed value of the parcel for the year in which the parcel is reappraised or reassessed shall be adjusted by adding one-third (1/3) of the increase to the assessed value for the year prior to the reappraisal or reassessment; and
        2. An additional one-third (1/3) of the increase shall be added in each of the next two (2) years.
    1. To carry out the provisions of this subchapter, the Assessment Coordination Division, as it deems necessary, appropriate, and consistent with the objectives of this subchapter, shall:
      1. Develop and implement rules relating to reappraisal procedures to be followed by counties, specifying annual objectives with respect to the discovery, listing, and valuation of real property for assessment purposes;
        1. Develop and implement rules relating to training, experience, and testing requirements for determining whether a person is qualified to manage a reappraisal.
        2. Any division personnel responsible for approving reappraisal plans or property values resulting from those reappraisals shall be required to meet the same criteria; and
        1. Enter into contracts with private entities for appraisal services on behalf of counties on such terms and conditions as the division deems are consistent with the provisions of this subchapter and are necessary and appropriate in its implementation.
        2. Section 19-11-101 et seq. shall not apply to a contract made under this subchapter and to the expenditure of funds from the Arkansas Real Property Reappraisal Fund.
      1. Each county shall follow the reappraisal procedures established by the division and file a reappraisal management plan with the division no later than November 1 of the year preceding the commencement of the reappraisal.
      2. The reappraisal management plan shall specify a proposed budget, personnel needs, and projected annual progress with respect to the discovery, listing, and valuation of property.
    2. The division shall follow preestablished division rules to determine whether a reappraisal management plan is approved or rejected.
      1. The division shall establish training, experience, and testing requirements, and such other criteria as it deems necessary to determine whether a person is qualified to manage a reappraisal performed under this subchapter.
      2. The division shall not approve a reappraisal management plan that does not name a qualified manager.
      1. Employees of the county assessor may be used to reappraise the county and the county assessor or a designated employee may manage the reappraisal if the county assessor or the designated employee meets the qualifications established in this subchapter and the rules established under this subchapter.
        1. If the initial reappraisal management plan required in subsection (b) of this section as submitted by the county assessor is rejected by the division, the county assessor shall be allowed to submit an alternate reappraisal management plan within thirty (30) days of the rejection of the initial reappraisal management plan.
        2. If the alternate reappraisal management plan is rejected by the division, the county shall employ and enter into a contract for professional services with a professional reappraisal company on behalf of all taxing units in the county as set forth in subsection (f) of this section.
      1. The county assessor may enter into a contract for professional services with a professional reappraisal company when both the proposed contract and the reappraisal management plan submitted by the contractor have been approved by the division.
        1. If the initial reappraisal management plan submitted by the contractor is rejected by the division, the contractor shall be allowed to submit an alternate reappraisal management plan.
        2. If the second reappraisal management plan is rejected by the division, the division shall write a reappraisal management plan that the county shall employ and enter into a contract for professional services with a professional reappraisal company on behalf of all taxing units in the county.
      2. The reappraisal contract must be accompanied by an approved reappraisal management plan.
    1. County assessors or those otherwise responsible for the valuation of real property for assessment purposes shall employ computer-assisted mass appraisal systems approved by the Assessment Coordination Division.
    2. Information stored in the electronic database used in the computer-assisted mass appraisal system shall include, but not be limited to, pertinent physical characteristics and historical sales prices of each property in the county.
    3. The division shall have access to view and obtain the data stored in each county's computer-assisted mass appraisal system via common-use technologies as determined by the division, including without limitation:
      1. The internet;
      2. Network technologies;
      3. Phone line and modem technologies;
      4. Compact disk technologies;
      5. Magnetic tape technologies; or
      6. Other similar common-use technologies.
      1. There is created a fund to be known as the “Arkansas Real Property Reappraisal Fund”.
      2. The proceeds of the fund shall be used to pay counties and professional reappraisal companies for the reappraisal of real property required by this subchapter and shall be in lieu of real property reappraisal funding by the local taxing units in each county of this state.
    1. For cause and after an opportunity for a hearing, the Director of the Assessment Coordination Division may suspend or terminate the contract of any appraisal firm or county.
      1. The fund proceeds shall be distributed monthly, except when there is a determination by the division that proper reappraisal procedures established by the division are not being followed.
          1. Upon a finding by the division that proper reappraisal procedures are not being followed, the county assessor or contractor shall be notified that the reappraisal is out of compliance with accepted guidelines as established in this subchapter and rules enacted pursuant to this subchapter.
          2. The division shall notify the county assessor or contractor in writing that the county assessor or contractor has thirty (30) days in which to bring the reappraisal into compliance.
        1. If there is a further finding that proper reappraisal procedures are not being followed, the contract shall be promptly terminated and the division shall negotiate another contract and reappraisal management plan for the completion of the reappraisal project.
    2. Based on its expertise and the criteria and requirements set forth in this subchapter, the division shall establish by rule the findings that indicate proper reappraisal procedures are not being followed.
    3. At the end of each countywide reappraisal, the division shall issue a report of the status of the county.
    4. Reappraisal funding under this section may be withheld and forfeited under § 26-80-101(b)(4)(A).
    1. The Arkansas Public Service Commission shall constitute the State Equalization Board and shall equalize the assessment of property throughout the state.
    2. For this purpose, in addition to the powers and duties conferred on the commission, it shall have power to equalize the assessment of all property in this state between districts, cities, and townships of the same county, between the different counties of this state, and of the property assessed by the commission in the first instance.
    1. The Arkansas Public Service Commission shall meet as the State Equalization Board on the first Monday in October of each year for the purpose of equalizing the taxable valuation of all real or personal property.
    2. The board shall:
      1. Examine and compare the returns of the assessment of property in the counties of this state;
      2. Summon and hear witnesses and make or cause to be made investigation relative thereto; and
      3. Proceed to equalize the property, so that all the taxable property throughout this state shall be assessed uniformly at its true and full market or actual value, or at such percentage as has been duly certified by the commission.
    1. A record of the proceedings of the State Equalization Board shall be kept by the secretary thereof.
      1. A certified copy of the record or such part thereof as affects his or her county shall, on or before the third Monday in November, be furnished the county clerk of each county in which property, the assessed valuation of which has been ordered by the board increased or reduced, is situated.
      2. In carrying out the order of the board, the county clerk shall add to or deduct from the valuation of any property, as adjusted by the local assessment and equalization officials, such percentage or amount as the board might so order and shall enter the adjusted or equalized valuation in the proper record and extend taxes thereon.
    1. There is created a county equalization board in each county of this state to be selected in the manner provided by §§ 26-27-302 — 26-27-305.
    2. The county equalization boards shall have all the powers and authority, and perform all of the duties which are conferred by law on the boards in this state.
    1. The county equalization board of each county shall consist of five (5) members.
    2. However, in counties having a population in excess of seventy-nine thousand (79,000) persons, according to the most recent federal decennial census, the county equalization board may consist of nine (9) members.
      1. When the county equalization board consists of five (5) members:
        1. One (1) member shall be selected by the representatives of the several school districts in the county;
        2. One (1) member shall be selected by the representatives of all cities and incorporated towns in the county;
        3. One (1) member shall be appointed by the county judge; and
        4. Two (2) members shall be appointed by a majority vote of the county quorum court in the following manner:
          1. The county quorum court shall appoint a licensed real estate appraiser to at least one (1) of these two (2) positions, but if a licensed real estate appraiser is not available or willing to serve, the county quorum court may appoint a licensed real estate broker;
          2. If a licensed real estate broker is not available or willing to serve, the county quorum court may appoint a licensed real estate salesperson; and
          3. If a licensed real estate salesperson is not available or willing to serve, the county quorum court may appoint any qualified elector of the county.
        5. The five (5) members shall be selected from different sections of the county.
      2. When the county equalization board consists of nine (9) members:
        1. Two (2) members shall be selected by the representatives of the several school districts in the county;
        2. Two (2) members shall be selected by the representatives of all cities and incorporated towns in the county;
        3. Two (2) members shall be appointed by the county judge; and
        4. Three (3) members shall be appointed by a majority vote of the county quorum court in the following manner:
          1. The county quorum court shall appoint a licensed real estate appraiser to at least one (1) of these three (3) positions, but if a licensed real estate appraiser is not available or willing to serve, the county quorum court may appoint a licensed real estate broker;
          2. If a licensed real estate broker is not available or willing to serve, the county quorum court may appoint a licensed real estate salesperson; and
          3. If a licensed real estate salesperson is not available or willing to serve, the county quorum court may appoint any qualified elector of the county.
        5. The selecting or appointing agency in each instance shall select or appoint the members from different sections of the county.
          1. For the purpose of making the selection of its members of the county equalization board as provided in this section, the school district's superintendent or designee of each school district in each county shall serve as the representative of his or her respective school district.
          2. The representatives of the several school districts of each county shall hold a meeting during the month of May of each year in which the term of any of their members of the county equalization board shall expire.
        1. The county judge shall serve as chair of the meeting and shall issue the call for the meeting, which shall specify the time, date, and place of the meeting.
          1. The selection of members of the county equalization board shall be by majority vote of the school board representatives present, and no action shall be taken unless there is a quorum present.
          2. A majority of all of the school board representatives in the county shall constitute a quorum.
          1. For the purpose of making the selection of their members of the county equalization board, the representatives of the cities and incorporated towns in the county shall hold a meeting during the month of May of each year in which the term of any of their members of the county equalization board shall expire.
          2. The mayor of the city or town or his or her designee shall serve as the representative of his or her city or town.
        1. The mayor or his or her designee of the county seat city or town or, if there are two (2) county seats, the mayor or his or her designee of the larger county seat city or town shall serve as chair of the meeting and shall issue the call, which shall specify the time, date, and place of the meeting.
          1. The selection of members of the county equalization board shall be by majority vote of the representatives of the cities and towns present, and no action shall be taken unless there is a quorum present.
          2. A majority of all of the representatives of all cities and incorporated towns in the county shall constitute a quorum.
          3. Each of the cities and incorporated towns within the county shall be entitled to one (1) vote.
      1. The county judge and the county quorum court of each county shall make the appointment of their members of the county equalization board during the month of May of each year in which the term of any of their members of the county equalization board shall expire.
    1. The terms of office of the members of the county equalization boards shall be staggered as follows:
        1. In those counties having a county equalization board composed of five (5) members, the members shall serve three-year staggered terms of office, with each expiring term to expire on the first Monday of June of each year, or until his or her successor is selected or appointed and qualified.
        2. However, on the first Monday in July, 1999, the terms of the present members of each county equalization board with three (3) or five (5) members shall expire and new members shall be appointed as is provided by law, and within thirty (30) days thereafter, the five (5) new members shall meet and determine by lot their respective staggered terms in such a manner that one (1) member's term should expire one (1) year thereafter, two (2) members' terms should expire two (2) years thereafter, and two (2) members' terms should expire three (3) years thereafter; and
        1. In those counties having a county equalization board composed of nine (9) members, the members shall serve three-year staggered terms of office, with each expiring term to expire on the first Monday of June of each year, or until his or her successor is selected or appointed and qualified.
        2. However, on the first Monday in July, 1999, the terms of the present members of each county equalization board with nine (9) members shall expire and new members shall be appointed as is provided by law, and within thirty (30) days thereafter, the new members shall meet and determine by lot their respective staggered terms in such a manner that the terms of three (3) members each should expire one (1), two (2), and three (3) years, respectively, thereafter.
      1. Upon the expiration of a member's term under the provisions of this section, the successor member shall be appointed or selected for a three-year term or until his or her successor is selected or appointed and qualified.
      2. Upon the expiration of the term of any member of any county equalization board or upon the vacancy of a membership of any county equalization board, the member to fill the vacancy shall be selected by the same group, either the directors of the several districts of the county, the members of the city and town councils of the cities and incorporated towns in the county, the county judge, or the county quorum court that made the selection of the member whose term has expired or has been vacated.
    1. Each member of a county equalization board, before entering upon the discharge of his or her duties, shall take the oath of office prescribed in Arkansas Constitution, Article 19, § 20, and further, that he or she will fearlessly, impartially, and faithfully equalize the assessed value of all property assessed and subject to taxation.
    2. The oath shall be subscribed and sworn to by each member of the county equalization board before the county clerk, and the county clerk shall make it a matter of record in his or her office.
    1. The county clerk or his or her designee shall serve as secretary of the county equalization board of his or her county and shall keep a complete and accurate journal of its proceedings and perform such other duties as may be by law required by the county equalization board.
    2. In addition, within ten (10) days after the appointment of the county equalization board for the county clerk's county, the county clerk or his or her designee shall file from time to time with the Assessment Coordination Division a statement showing the name and address of each member of the county equalization board.
    3. When any change in the personnel of the county equalization board is made, the county clerk shall immediately so advise the Arkansas Public Service Commission.
    1. The members of the county equalization board and the secretary thereof of the counties of this state shall receive for their services an amount to be fixed by the county quorum court of the county.
    2. All compensation, together with expenses necessarily incurred by reason of official action of the county equalization board, shall be audited and paid by the county as other claims against the county are audited and paid.
      1. The county equalization board shall meet on August 1 of each year at the office of either the county clerk or the office of the county assessor.
      2. However, if August 1 falls on a Saturday, a Sunday, or a legal holiday, the meeting shall be held on the next business day which is not a Saturday, a Sunday, or a legal holiday.
    1. At the first meeting of the county equalization board, it shall organize by electing one (1) of its members as chair who, in addition to all other powers and duties conferred in this subchapter, shall have the power to administer oaths to witnesses appearing before the county equalization board.
      1. In addition, the county equalization board shall exercise its functions as a board of equalization to equalize the assessed value of all acreage lands, city and town lots, other real property, and personal property subject to local assessment, regardless of the year in which the property was last assessed by the local county assessor.
        1. Beginning August 1 of each year and continuing through October 1, the county equalization board shall meet as often as is necessary to consider the equalization of all property assessments and all requests for adjustments of assessments by taxpayers.
          1. However, in a county where the assessed value of real and personal property has been found by the Assessment Coordination Division to be below the percentage of the true or fair market value as required by law, the meetings of the county equalization board shall continue until all property assessments are equalized and all requests for adjustments of assessments by taxpayers are considered.
          2. However, the meetings shall not run later than the third Monday in November of each year.
    2. A majority of the members of the county equalization board shall constitute a quorum for the transaction of business.
        1. On petition of the county judge or the county quorum court or on the county equalization board's own motion at any time after adjournment of its regular monthly meeting or after its equalization meetings from August 1 each year through October 1 and before the third Monday in November of each year, the county equalization board of any county shall convene in special session for the purposes of:
          1. For these purposes, the county equalization board shall be vested and charged with all the powers and duties with which the county equalization board is vested and charged when meeting in regular session.
          2. In addition, the county equalization board may employ qualified appraisers, abstractors, or other persons needed to appraise properties which the county equalization board may need in the discharge of its duties.
      1. The petition to the county equalization board shall specify the date on which the county equalization board shall convene, and the county equalization board may thereafter exercise its functions but not later than the third Monday in November next following.
      1. An appeal from the action of the county equalization board when in special session shall be to the county court in the manner as provided by law.
      2. Any appeal shall be filed within ten (10) days from date of notice of action by the county equalization board and shall be heard and order made by the county court not later than forty-five (45) days prior to the date on which the tax books for the year are required to be delivered to the county collector.
      1. The expense of any special session of the county equalization board including the expense for employment of appraisers, abstractors, and other persons needed shall be allowed and paid from the general fund of the county.
        1. The general fund of the county shall be reimbursed by transfer to it from the funds of the respective taxing units of the county.
        2. The amount to be contributed by each taxing unit shall be in the proportion that the total of the ad valorem taxes collected for the benefit of each taxing unit bears to the total of the ad valorem taxes collected for the benefit of all taxing units during collection period next following the special session.
      1. The county equalization board, on petition of the county judge or on its own motion, shall, at any time, convene in special session for the purpose of planning its work of equalization of property assessments.
      2. For this purpose only, the county equalization board shall be vested and charged with all the powers and duties with which the county equalization board is vested and charged when meeting in regular session. In addition, the county equalization board shall be empowered to employ qualified appraisers, abstractors, or other persons needed to appraise properties, which appraisal the county equalization board may need in the discharge of its duties.
      1. The expense of any special session of the county equalization board, including the expense for employment of appraisers, abstractors, and other persons needed shall be allowed and paid from the general fund of the county.
      2. The general fund of the county shall be reimbursed by transfer to it from the funds of the respective taxing units of the county, and the amount to be contributed by each taxing unit shall be in the proportion that the total of the ad valorem taxes collected for the benefit of each taxing unit bears to the total of the ad valorem taxes collected for the benefit of all taxing units during the collection period next following the special session.
    1. Immediately after the county assessor files his or her report of the assessment of real and personal property in the office of the county clerk as required by law, the county clerk shall present the report of the assessment to the county equalization board, and the county equalization board shall proceed to equalize the assessed valuation of the properties.
    2. For this purpose, the county equalization board shall observe the following rules:
        1. It shall raise or lower the valuation of any property to bring about a complete equalization of property at the proper value under § 26-26-407 or § 26-26-1202 or in accordance with a value otherwise prescribed by law.
        2. It shall not raise or lower the valuation of any property without documenting the reason for raising or lowering the valuation of the property to achieve the proper value under § 26-26-407 or § 26-26-1202 or in accordance with a value otherwise prescribed by law, and the documentation shall be attached to the appropriate property record card or cards.
          1. It shall not raise or lower the value of any property without reviewing values of similarly situated properties.
          2. If the same reason for raising or lowering the value of the property exists for those similarly situated properties, the values for those properties shall also be raised or lowered, and the changes shall be documented.
        3. It shall not materially change the records of the county assessor's office, but may only direct that the assessed value of property be raised or lowered in keeping with its documented findings;
        1. In each instance in which the county equalization board shall raise the valuation of any property, it shall immediately notify the owner or his or her agent by first class mail of the increase.
        2. However, all persons present before the county equalization board in person or by agent at the time the increase is ordered are there so notified and shall not be entitled to further notice.
        3. The notice shall state the valuation returned by the county assessor and the valuation fixed by the county equalization board and shall advise the owner or his or her agent that he or she may in person, by agent, petition, or letter apply for and receive consideration or hearing by or before the county equalization board if the application shall be made on or before the first Saturday next preceding the third Monday in September if in regular session for equalization or before the first Saturday next preceding the third Monday of November if meeting in special sessions; and
      1. In each instance in which an assessment is raised and the owner or his or her agent has applied for consideration or hearing for an adjustment of his or her assessment, if the county equalization board has failed to take action on his or her application before adjourning its regular session or if it fails to convene in special session to consider the application, then the county equalization board shall reduce all such increases to the assessed levels of the previous year.
    1. The county equalization board, or any member thereof, shall have free access to the records of the office of the county clerk and of the office of the circuit clerk and ex officio county recorder of the county.
      1. The county equalization board or any member may enter upon and view property, and may require witnesses to appear before the county equalization board and testify regarding the location, amount, kind, and value of any or all items of any class or character of property in the county.
      2. The secretary of the county equalization board, in vacation or in session, at the direction of the county equalization board or any member thereof, shall summon witnesses for examination by the county equalization board.
      1. A property owner or an agent of a property owner may apply in person, by petition, or by letter to the secretary of the county equalization board on or before the third Monday in August of each year for the adjustment of the county assessor's assessment on the property owner's property or the property of another person.
      2. The county equalization board may not adjust any assessment other than the assessment made during the year it meets to consider an application made under subdivision (a)(1) of this section.
      3. The county equalization board does not have jurisdiction over and shall not accept or consider a petition or letter under subdivision (a)(1) of this section for the adjustment of the:
        1. County assessor's determination of a property's tax-exempt status under Arkansas Constitution, Article 16, § 5(b);
        2. Valuation of agricultural land, pasture land, or timberland derived by the guidelines and methods set forth by the Assessment Coordination Division under § 26-26-407; or
        3. Valuation of producing mineral rights in accordance with the directions and methods established by the division under § 26-26-1110.
      1. A property owner or an agent of the property owner may personally appear before the county equalization board or pursue the appeal by supplying written documentation as to the adjustment desired.
      2. The property owner or an agent of the property owner shall notify the secretary of the county equalization board, who shall schedule a hearing, and, if practicable, the hearing shall be held at the convenience of the property owner.
      1. The county equalization board shall begin hearing appeals no later than the second Monday in August.
      2. On at least one (1) day each week, appeals shall be heard after normal business hours to accommodate working property owners.
        1. At a hearing before a county equalization board, the county assessor shall first present to the county equalization board any evidence that the county assessor's office or a contracted appraisal company considered when determining the valuation of the property that is the subject of the hearing.
        2. After the county assessor has presented the evidence as required in subdivision (d)(1)(A) of this section, the appealing property owner or his or her agent shall present to the county equalization board any evidence that supports a valuation of the property that is different from the valuation set by the county assessor.
          1. After the appealing property owner or his or her agent presents evidence under subdivision (d)(1)(B) of this section, the county assessor shall have the opportunity to rebut the evidence presented by the appealing property owner or his or her agent in the proceeding.
          2. If the appealing property owner presents material evidence that has not been provided to the county assessor at least five (5) business days before the hearing, the county equalization board may continue the hearing to a future date in order for the county assessor to review and prepare a response, including without limitation additional evidence.
          1. For protests and appeals of commercial and industrial property, operating as such at the time of assessment, any party that intends to offer into evidence a sale or lease transaction as evidence of the value of the property that is the subject of the protest or appeal before the county equalization board shall have an affirmative duty to disclose both of the following at least five (5) days prior to the hearing:
            1. Whether the proposed comparable property was occupied or unoccupied at the time of the transaction; and
            2. Whether the proposed comparable property was subject to any use, deed, or lease restriction at the time of the transaction that prohibits the property on which a building or structure sits from being used for the purpose for which the building or structure was designed, constructed, altered, renovated, or modified.
            1. The purpose of the disclosure is so that the county equalization board can determine whether the proposed comparable property is similarly situated to the subject property on appeal.
            2. If the information required under this section is not disclosed as required under this section, the county assessor shall advise the county equalization board that the failure to disclose the information should be considered a material omission affecting the weight of the evidence.
        3. After the evidence has been presented by both parties under this subsection, the county equalization board shall consider all evidence presented at the hearing and make a determination based on evidence presented by the parties to either accept the valuation of the subject property set by the county assessor or raise or lower the valuation of the subject property.
          1. Except as necessary during other hearings of the county equalization board for the purpose of comparison or equalization, or both, ex parte communications between members of the county equalization board or between a member of the county equalization board and other persons concerning property on appeal before the county equalization board are prohibited.
          2. However, members of the county equalization board may communicate with the attorneys for the county equalization board and with the secretary for the county equalization board for purposes of scheduling.
      1. The county equalization board shall decide the merits of an adjustment of assessment application and notify the property owner of its decision in writing at least ten (10) business days after the hearing.
      2. The county equalization board's notification shall include:
        1. The county equalization board's decision;
        2. The right of the property owner to appeal the county equalization board's decision to the county court;
        3. The deadline for petitioning the county court for a hearing; and
        4. A statement that a petition filed in county court for a hearing on behalf of a corporation, limited liability company, or other business entity shall be signed and filed by an attorney licensed to practice law in Arkansas.
        1. The county assessor or a property owner who is aggrieved at the action of a county equalization board may appeal from the action of the county equalization board to the county court by filing a petition of appeal with the county clerk, who shall assign a case number to the appeal.
        2. The county clerk shall not charge a fee for filing an appeal under subdivision (a)(1)(A) of this section.
      1. The county clerk shall summon the members of the county equalization board and issue such process as the county assessor, the county equalization board, or the county judge may request for witnesses and evidence of the amount and value of the property.
    1. No appeal to the county court shall be taken unless the petitioner:
      1. Has exhausted his or her remedy before the county equalization board; or
      2. Was not sent the notice of value change as required by § 26-23-203.
      1. An appeal must be filed on or before the second Monday in October of each year and shall have preference over all matters before the county court and shall be heard and an order made on or before the fifteenth day of November.
        1. The county court shall notify in writing the property owner or county assessor of its decision no later than twenty (20) working days after the property owner's appeal hearing.
        2. The notification shall state the county court's decision and that the property owner may appeal the decision to the circuit court.
      1. On an appeal from the action of the county equalization board or a subsequent court order affecting the valuation of the property, the petitioner or plaintiff shall have the burden of proving by a preponderance of the evidence the true and correct value of the property for ad valorem tax purposes as prescribed by law.
      2. A presumption of correctness or weight of authority does not attach to the action of the county assessor or the county equalization board, and the petitioner or plaintiff is not required to:
        1. Show that the assessed valuation of property is clearly erroneous, manifestly excessive, or confiscatory; or
        2. Meet a higher standard of proof than preponderance of the evidence.
        1. For protests and appeals of commercial and industrial property, operating as such at the time of assessment, any party that intends to offer into evidence a sale or lease transaction as evidence of the value of the property that is the subject of the protest or appeal before the court shall have an affirmative duty to disclose both of the following at least five (5) days prior to the hearing:
          1. Whether the proposed comparable property was occupied or unoccupied at the time of the transaction; and
          2. Whether the proposed comparable property was subject to any use, deed, or lease restriction at the time of the transaction that prohibits the property, on which a building or structure sits from being used for the purpose for which the building or structure was designed constructed, altered, renovated, or modified.
        2. The purpose of the disclosure is so that the court can determine whether the proposed comparable property is similarly situated to the subject property on appeal.
          1. The court shall consider all evidence when determining whether comparable properties are similarly situated to the subject property.
          2. Nothing in this section is meant to restrict a court's consideration of whether a proposed comparable property is similarly situated to the subject property.
    2. Upon an appeal, any property owner in the county may appear and be heard in support of or in opposition to the appeal.
        1. The county court shall acquire no jurisdiction to hear the appeal unless the county clerk shall have first given notice of the appeal by publication:
        2. The notice shall state:
          1. The name of the parties taking the appeal;
          2. The assessment complained of, together with a definite description of the property so assessed;
          3. The name of the supposed property owner;
          4. The time and place fixed for the hearing of the appeal; and
          5. That any property owner in the county may appear at the hearing of the appeal and be heard in support of or in opposition to the appeal.
      1. The notice of appeal may be in the following form:
    3. It shall be the duty of the prosecuting attorney or his or her deputy, when called upon by the county assessor, a member of the county equalization board, or the county court, to represent the county and the state in the prosecution of all appeals before the county courts and the circuit courts.
    1. Each county equalization board, immediately on the completion of its work of equalization and before final adjournment, shall adopt a resolution wherein it shall be stated the percentage of true market or actual value at which it has equalized the assessed values of the property of the county under its jurisdiction for the year.
      1. The resolution shall be signed by a majority of the members of the county equalization board.
      2. A copy of the resolution, together with an abstract of the adjusted assessment by total of items and value, shall be forwarded to the Assessment Coordination Division no later than thirty (30) days after final adjournment of the county equalization board.
    1. It is the duty of the county clerk of each county to enter upon the assessment record of his or her county the adjusted or equalized assessed value of any and all property as found and fixed by the county equalization board.
    2. In making the tax books of the county, unless further adjustments are ordered by the county court or the State Equalization Board, the county clerk shall extend the taxes on the adjusted or equalized values.
    1. The county clerk of each county shall, on or before the second Monday in November of each year, unless otherwise ordered and directed by the State Equalization Board, file with the State Equalization Board, on such forms as it may prescribe, a “final abstract of the tax books”.
    2. The abstract shall show, by total of items and value, the total assessment of his or her county after all adjustments as may be ordered by the county equalization board and the county court have been made.
    1. The purpose of this section is to:
      1. Set out the procedure for a county equalization board to follow when changing real property values in a year when a county is not completing reappraisal; and
      2. Require the county equalization board to consult with the Assessment Coordination Division to utilize data compiled under the division's sales ratio study.
    2. If in the judgment of the county equalization board or the county judge based upon current economic conditions a number of real estate parcels in a county may have decreased in market value since the last countywide reappraisal, then the county equalization board may by its motion or the county judge may petition for the county equalization board to enter into a special session to determine what action is needed under this section to address the decrease in market value.
    3. The county equalization board shall not take action as proposed in the special session under subsection (b) of this section until the county equalization board has:
      1. Consulted the county assessor on the proposed action in the special session;
      2. Consulted the division on the proposed action in the special session; and
      3. Analyzed the current real estate market in the county.
    4. The county equalization board may employ a professional appraisal manager to analyze the current real estate market in the county to fulfill its obligation under subdivision (c)(3) of this section.
    5. If the county equalization board determines in the special session that action is needed under this section, the county equalization board shall adjust market values of real estate in the county under the methodology established by the rules of the division.
    6. The division shall promulgate rules to:
      1. Set out the procedure for a county equalization board to make a determination whether action is needed under this section; and
      2. Establish the methodology to be used when adjusting the market values of real property.
    7. If the county equalization board fails to follow the methodology to adjust real estate values as set out in the division's rules, the county equalization board shall be subject to withholding of funds from the Arkansas Real Property Reappraisal Fund under § 26-26-1907.
    8. A special session convened under this section is subject to the procedures for a special session of the county equalization board under § 26-27-312.
    1. In addition to its other duties, a county equalization board shall hear appeals under § 14-126-103.
    2. The county equalization board shall meet as necessary to hear appeals under § 14-126-103.
      1. Beginning January 1, 2018, the Director of the Assessment Coordination Division shall:
        1. Approve curricula and provide materials for use in training and educating members of county equalization boards;
        2. Supervise a comprehensive course for training and education of members of county equalization boards and issue certificates indicating course completion;
        3. Make all materials for use in training and educating members of county equalization boards freely available online; and
        4. Provide staff to respond to technical questions relating to the duties and responsibilities of members of county equalization boards and property appraisal issues.
      2. The director may contract with one (1) or more service providers to assist with the requirements of this subsection.
    1. The curricula and materials for the comprehensive course established under this section shall include without limitation information regarding the:
      1. Cost, income, and market data comparison methods of property appraisal;
      2. Appraisal of business personal property;
      3. Duties of the county assessor;
      4. Duties of a county equalization board, including without limitation the independence of a county equalization board from the county assessor and other employees and contractors of the county assessor;
      5. Prohibition against ex parte communications applicable to members of a county equalization board;
      6. Requirements regarding equal and uniform appraisal of property; and
      7. Right of a property owner to protest the appraised value of the property and the procedures for an appeal.
      1. Except as otherwise provided in this subsection, each member of a county equalization board shall complete the comprehensive course established under subsection (a) of this section.
        1. A member of a county equalization board who is required to attend the comprehensive course shall not participate in a county equalization board hearing unless the member of the county equalization board has been certified as completing the comprehensive course established under subsection (a) of this section.
        2. A member of a county equalization board who is appointed after the date the comprehensive course established under subsection (a) of this section is offered for that year may serve without certification until the next comprehensive course established under subsection (a) of this section is offered.
        1. Until January 1, 2021, no more than one-third (1/3) of the members of a county equalization board, as designated by the chair of the county equalization board serving on January 1 of each year or, if no chair is serving on January 1, then by the county judge, shall be required to attend the comprehensive course established under subsection (a) of this section in a single year.
        2. The director may waive the requirements of this subsection for:
          1. Appraisers who are registered, licensed, or certified to perform appraisals in Arkansas; and
          2. Attorneys licensed to practice law in Arkansas.
      1. For purposes of continuing education, a member of a county equalization board shall obtain certification of completion of the comprehensive course established in subsection (a) of this section every three (3) years.
      2. If a member of a county equalization board does not become recertified under subdivision (d)(1) of this section three (3) years after his or her previous certification of the course, the member of a county equalization board shall not participate in a hearing before the county equalization board until the member is recertified.
    1. The Director of the Assessment Coordination Division shall establish uniform hearing procedures for county equalization boards, which shall include without limitation information regarding:
      1. The notice required for a hearing;
      2. Conducting a hearing;
      3. Scheduling, rescheduling, and canceling a hearing;
      4. The right of the county assessor and property owner to offer evidence and testimony and examine and cross-examine witnesses at a hearing;
      5. A property owner's right to appear by an agent at a hearing;
      6. The prohibitions against ex parte communications and a county equalization board's consideration of information not provided at a hearing; and
      7. Conflicts of interest.
      1. A county equalization board shall adopt at its first meeting of each year and shall follow the uniform hearing procedures established by the director under this section.
      2. Upon request, the secretary of a county equalization board shall provide an owner of property in the county with a copy of the uniform hearing procedures that have been adopted by the county equalization board for that year's hearings.
      3. A copy of the uniform hearing procedures adopted by a county equalization board shall be conspicuously posted in a prominent place in the room in which the county equalization board hearings are held.
      1. At the first meeting of a county equalization board each year, each member of the county equalization board shall sign an affidavit stating that the member of the county equalization board will not knowingly violate any law or procedure regarding the conducting of county equalization board hearings.
      2. If a member of a county equalization board violates a law or procedure regarding the conducting of county equalization board hearings before or during a hearing, the member of the county equalization board shall recuse himself or herself from further participation in that hearing.
        1. If a member of a county equalization board recuses himself or herself from a hearing under subdivision (c)(2) of this section or otherwise, the county judge shall appoint an interim member of the county equalization board to serve for the duration of that hearing.
        2. An interim member of a county equalization board appointed under this subdivision (c)(3) shall not be subject to the education and training requirements stated in § 26-27-324.
      1. If a county by appropriate action elects to acquire, lease, rent, or otherwise provide for the use of electronic data processing equipment, commonly referred to as a computer, to keep the assessment records, to prepare the tax books, to prepare the tax settlements, and to prepare the county collector's records and receipts for property taxes, the county quorum court by ordinance may designate one (1) or more appropriate county officers to be responsible for the maintenance and operation of the computer, the keeping of the assessment records, the preparation of the tax books, the preparation of the county collector's records and receipts for property taxes, and the preparation of the tax settlements.
        1. If any county officer other than the county clerk is designated to prepare the tax books or tax settlements, that county officer shall be reimbursed in the manner provided by law.
        2. If the county assessor is designated as the county officer to keep the assessment records, prepare the tax books, and prepare the county collector's receipts by use of electronic data processing equipment, the cost shall be prorated among the respective taxing units in the same manner as is provided by law for defraying the cost of operating the county assessor's office.
    1. When any county acquires, leases, rents, or otherwise provides for the use of electronic data processing equipment for the purposes prescribed in subsection (a) of this section, the county quorum court may, by ordinance, authorize the use of the equipment for any other appropriate county purposes and may provide for prorating the costs thereof among the various county offices.
    1. It shall be the duty of the preparer of tax books to add each tax book delivered to the county collector, making the separate columns of values when added together amount to the sum of the column of total values when added up and, at the end of the tax book, recapitulate the additions of each page, so as to make it prove itself to be correct.
    2. A copy of the recapitulation under this section shall be a part of the tax books.
    1. In all cases in which any preparer of the tax books shall omit, by inadvertence or mistake, in any year to enter on the books of his or her county any lands or lots or parts of lots situated in his or her county subject to taxation, it shall be his or her duty to enter them on the tax books of the next succeeding year and to add to the taxes of the current year the simple taxes of each and every preceding year in which the lands or lots so escaped taxation.
    2. There shall be separate recapitulation of those lands and lots.
      1. The preparer of the tax books shall mark opposite every tract, town lot, or city lot that may have been forfeited to the state for the nonpayment of taxes the word “forfeited”.
        1. On that tract, town lot, or city lot there shall not be charged any taxes unless the Commissioner of State Lands shall officially advise the preparer that it has become subject to taxation.
        2. In that event, the same taxes shall be charged and collected on the tract, town lot, or city lot as may be allowed by law.
    1. The county assessor shall assess all the lands or lots, or parts of lands or lots, that may appear on the plats or lists furnished to the county assessor.
    2. If any county clerk shall have lost or if the records of his or her office shall not contain a list of the lands forfeited to the state within his or her county, the county clerk shall certify that fact to the Commissioner of State Lands, and the Commissioner of State Lands shall immediately furnish the county clerk with that list.
    1. On or before February 1 of each year, the preparer of tax books of each county shall make out and deliver the tax books of his or her county to the county collector with the preparer of tax books' warrant attached, under his or her hand and the seal of his or her office, authorizing the county collector to collect the taxes.
    2. The county collector shall give a receipt for the tax books, in which the amount of the different taxes shall be separately stated, and the county clerk shall file the receipt in the records of the county.
    1. When, after the tax books have been delivered to the county collector, it is ascertained that there is an error in the real or personal property tax books, the error shall be corrected in the following manner:
        1. When the county assessor discovers an error in the real property tax books or any error is brought to the attention of the county assessor by any person, the county assessor shall cause the error to be corrected by completing the following prenumbered form in triplicate, indicating thereon the correction to be made:
        2. Upon completing and signing the above real property tax correction form in triplicate, the county assessor shall retain the original in the county assessor's records and shall transmit two (2) copies to the county collector. The county collector shall sign the two (2) copies received from the county assessor, shall retain one (1) copy in the county collector's records, and shall transmit the remaining copy to the county clerk, who shall sign it and file it in the records of the county clerk.
        1. When the county assessor discovers an error in the personal property tax books or any error is brought to the attention of the county assessor, he or she shall cause the error to be corrected by completing the following prenumbered form in triplicate, indicating thereon the correction to be made:
        2. Upon completing and signing the above personal property tax correction form in triplicate, the county assessor shall retain the original in the county assessor's records and shall transmit two (2) copies to the county collector. The county collector shall sign the two (2) copies received from the county assessor, shall retain one (1) copy in the county collector's records, and shall transmit the remaining copy to the county clerk who shall sign it and file it in the records of the county clerk.
    2. The real property tax correction forms and the personal property tax correction forms required by this section to be kept in the records of the county assessor, county collector, and county clerk may be destroyed upon the expiration of one (1) year after the date on which the Legislative Joint Auditing Committee accepts and files the audit of the particular office performed by Arkansas Legislative Audit.
      1. This section applies only to the correction of extension errors, erroneous property descriptions, classifications, or listings.
        1. A correction shall be made under this section regardless of whether the error was caused by the county assessor or the taxpayer or was the result of an erroneous record or report or other circumstance.
        2. However, a correction under this section shall not be utilized to make any change in the valuation of real or personal property as shown on the tax books and related records other than a change in valuation necessitated by the correction of factual errors as provided in this section.
      2. A reduction in the valuation of real or personal property shall not be made, except such as shall have been ordered by the county equalization board, the county court, the circuit court, or the Supreme Court, or be caused by the correction of actual and obvious errors as provided in this section.
    3. When the county assessor discovers or is informed of an error described in subsection (c) of this section in the real or personal property tax books before the tax books have been delivered to the county collector, the county assessor shall correct the error directly on the tax books and shall maintain a record of the correction in the county assessor's records.
    1. This section applies to a tax or fee on the county tax books that is levied by any entity that:
      1. Is not on the county tax books for the prior year;
      2. Applies to more than five-tenths of one percent (0.5%) of either the personal or real estate assessments in the county; and
      3. Requires the county collector to collect the tax or fee.
      1. The entity that levies the tax or fee shall deliver to the preparer of the tax books of the county a complete listing of the real estate parcels or personal assessments on which the tax or fee is applied.
      2. The list shall include the following information:
        1. The name of the owner of the property;
        2. The county parcel and identifying number;
        3. If real property, the legal description; and
        4. The amount of taxes or fees due for each real estate parcel or personal assessment.
      3. The list shall be delivered to the preparer of the tax books no later than January 1 of the year the tax or fee is to be collected.
      4. If the county uses a computer and other electronic equipment to collect taxes, the list shall be given to the preparer of the tax books in an electronic format compatible with and useable by the county's computer or electronic equipment.
    2. All due dates, transfers of funds, and recordkeeping on the tax or fee shall be the same as those currently in use for real estate or personal property taxes.
    1. If an entity determines that an emergency exists, it may petition the county quorum court of the county to allow the entity to place a tax or fee on the tax books of the county after January 1 and before July 31 of the year in which collection is to be made.
    2. If the county quorum court agrees that an emergency exists:
        1. The tax or fee will be added to the tax books if the entity complies with § 26-28-114.
        2. The January 1 deadline under § 26-28-114 shall become August 15 of the year to be collected; and
        1. The entity shall pay the expense of adding the tax or fee to the tax books and any additional expense incurred by the county in collecting the tax or fee.
        2. The additional expense shall be determined by a committee consisting of the county judge, the preparer of the tax books or the county clerk, and the county collector not later than October 1 of the collection year.
        3. The expense shall be withheld from the proceeds for the tax or fee by the county treasurer and be credited to the county collector's commission account.
    1. Under the unit tax ledger system, all counties in the State of Arkansas which shall adopt it shall cause the county collector's office to be the exclusive tax collecting and accounting office of the county, and the county collector shall collect current and delinquent taxes on real and personal property.
    2. All laws and parts of laws relating to real and personal tax collecting, recording, charging, billing, and accounting wherein reference is made to the county clerk, county treasurer, and delinquent tax collector shall mean “county collector.” However, the county collector shall settle with the county treasurer of the counties which may adopt the system as is provided by law.
    1. All county assessors in counties where the system contemplated by this subchapter is installed shall deliver to the county collector real and personal property assessments on forms furnished by the county collector. The county collector shall then make proper posting of each assessment. As postings are made, the county collector shall compile a proof journal list of the assessments showing the total valuation. The total valuation shall balance with the total of all real and personal property assessments as made by the county assessor.
    2. Thereafter, the county assessor shall verify the total and, when found to be correct, shall make a certificate of assessment of the real and personal property in the county showing a total valuation of all real and personal property assessed in the county, which shall conform with the total valuation assessed by the Arkansas Public Service Commission as certified down to the county assessor, the county assessor adding to the certificate required by law the following additional paragraph:
      1. The county assessor shall make the certificate in triplicate and file one (1) copy with the commission, which shall be the county assessor's abstract and which shall give the valuation of all assessments in the county by total and not by items, as provided by § 26-26-1103, and one (1) copy of the certificate shall be filed in the county clerk's office, and the county assessor shall keep one (1) copy in the file in his or her office.
      2. All three (3) of the certificates shall be subscribed and sworn to as provided by law.
      1. The county quorum court of any county in this state by ordinance may provide for the use of electronic data processing equipment, commonly referred to as a computer, to keep the assessment records, to prepare the tax books, and to prepare the county collector's records and receipts for property taxes.
      2. The county quorum court by ordinance may designate the appropriate county officer to be responsible for the maintenance and operation of the computer.
      3. The county quorum court by ordinance may designate the county clerk, the county assessor, or the county collector as preparer of the tax books.
    1. When a county acquires, leases, rents, or otherwise provides for the use of electronic data processing equipment for the purposes prescribed in subsection (a) of this section, the county quorum court by ordinance may authorize the use of the electronic data processing equipment for any other appropriate county purposes and may provide for prorating the costs of the electronic data processing equipment among the various county offices.
    1. Taxes assessed upon real and personal property shall bind them and be entitled to preference over all judgments, executions, encumbrances, or liens whensoever created.
    2. All taxes assessed shall be a lien upon and bind the property assessed from the first Monday of January of the year in which the assessment shall be made and shall continue until the taxes, with any penalty which may accrue thereon, shall be paid. However, as between grantor and grantee, the lien shall not attach until the last date fixed by law for the county clerk to deliver the tax books to the county collector in each year after the tax lien attaches.
      1. Failure to satisfy a personal property tax lien following a purchase of a business or a business's assets, goods, chattels, inventory, or equipment not in the ordinary course of business shall result in the assessment of an additional penalty under § 26-36-201(c) except with respect to a purchase of the following:
        1. A vehicle subject to registration; or
        2. A manufactured home or a mobile home.
      2. A purchase of a business or a business's assets, goods, chattels, inventory, or equipment not in the ordinary course of business does not include the deed of property in lieu of foreclosure or the acquisition of title to property following a foreclosure sale.
    1. Whenever an action may be brought against any person holding the office of county collector, county assessor, or county clerk for performing or attempting to perform any duty or thing authorized by any of the provisions of this act or the laws of this state, for the collection of the public revenues, the county collector, county assessor, or county clerk shall be allowed and paid out of the county treasury reasonable fees of counsel and other expenses for defending the action or suit and the amount of any damages or costs adjudged against him or her.
    2. The fees, expenses, damages, and costs shall be apportioned ratably by the county clerk among all the parties entitled to share the taxes so collected and shall be deducted by the county clerk from the shares or portions of revenue at any time payable to each, including, as one of the parties, the state itself, as well as the counties, townships, towns, or cities, and other corporations or other organizations entitled thereto as indicated.
      1. It shall be unlawful for any railroad company, bus line company, truck line company, motor vehicle carrier, or any other common carrier, whether person, firm, or corporation, or the agent or receiver thereof, to knowingly transport, or permit to be transported, within the State of Arkansas any goods, wares, merchandise, or articles whatsoever upon the sale or possession for sale of which a tax is imposed by law when the tax has not been paid upon the goods, wares, merchandise, or articles. And it shall be unlawful for any carrier to sell, offer for sale, or deliver to any person, or permit the sale or delivery of any goods, wares, merchandise, or articles upon which the tax has not been paid as required by law.
      2. Each sale, offer for sale, or delivery shall constitute a separate offense.
    1. For each violation of this section, a fine of twenty-five dollars ($25.00) shall be imposed, and the person, firm, corporation, or the agent or receiver thereof, violating any of the provisions of this section shall also be liable for the amount of tax due.
    2. All fines collected for the violation of any of the provisions of this section shall be paid into the State Treasury.
    3. All taxes due under this section may be recovered by a civil action brought at the instance of the Attorney General in the name of the Secretary of the Department of Finance and Administration of the State of Arkansas.
    4. This section is not to be construed to repeal any law, but it shall be cumulative to all present laws affecting the subject matter contained in this section.
      1. All banks, savings and loan associations, and other financial institutions and all persons, firms, or corporations which are holders of escrow funds for payment of real property taxes, within thirty (30) days after sufficient funds have accumulated in each account for the payment of property taxes, shall notify the county collector.
      2. If sufficient funds for the payment of one (1) year's taxes on real estate have accumulated within an escrow account prior to the commencement of the period in which the county collector may collect real property taxes for the year in which due, this notification shall be made within thirty (30) days after the county collector is authorized by law to commence collecting real property taxes during the year.
      3. Further, those holders of escrow funds must remit payment for property taxes within sixty (60) days of receipt of the tax bills from the county collector.
        1. Any bank, savings and loan association, or other financial institution or any person, firm, or corporation holding escrow funds for the payment of real property taxes due on properties belonging to persons for whom the escrow accounts are being held, which fails to pay to the county collector the real property taxes on the property within the time limitation imposed by this subsection, shall be subject to a penalty of ten percent (10%) of the amount of the total taxes due.
        2. The penalties shall be paid from funds belonging to the holder of the escrow account.
    1. In no event shall moneys paid as penalties for late payment of real property taxes under the provisions of subsection (a) of this section be charged against the escrow account.
    2. All penalties collected by the county collector under subsection (a) of this section shall be credited to the various taxing units of the county in the respective proportions that each taxing unit shares in real property taxes collected by the county.
    1. If a county collector has reason to believe that a person charged with taxes, other than taxes upon real estate, is about to remove from the county without paying the person's taxes, at any time the county collector may levy and collect the taxes with costs by distress and sale.
    2. A county collector may levy and collect the charged taxes with costs by distress and sale if the delinquent taxes are not satisfied or paid in full following the sale of a business or the sale of the assets, goods, chattels, inventory, or equipment of a business not in the ordinary course of business.
    1. Every person shall be liable to pay tax for the lands, town, or city lots of which he or she may stand seized for life, by curtesy, or in dower, or may have the care of as guardian, executor, or administrator, or as agent or attorney, having the funds of the principal in his or her hands.
    2. It shall be the duty of each person holding lands as indicated to pay the taxes which may be assessed thereon each year.
    1. In all cases where any tract of land may be owned by two (2) or more persons as joint tenants, coparceners, or tenants in common, and one (1) or more proprietors shall have paid the tax or tax and penalty charged on his or her proportion of the tract, or one (1) or more of the remaining proprietors shall have failed to pay his or her proportion of his or her tax or tax and penalty charged on the land and partition of the land has or shall be made between them, then the tax or tax and penalty, paid as indicated, shall be deemed to have been paid on the proportion of the tract set off to the proprietor who paid his or her proportion of the tax or tax and penalty, and the proprietor so paying the tax or tax and penalty, as indicated, shall hold the proportion of the tract set off to him or her, as indicated, free from the residue of the tax or tax and penalty charged on the tract before partition, and the proportion of the tract set off to the proprietor who shall not have paid his or her proportion of the tax or tax and penalty, remaining unpaid, shall be charged with the tax or tax and penalty in the same manner as if the partition had been made before the tax or tax and penalty, had been assessed.
    2. Whenever any land so held by tenants in common shall be sold upon proceedings in partition or shall be taken by the election of any of the parties to such proceedings, or when any real estate shall be sold at judicial sale, or any administrator's, executor's, guardian's, or trustee's sale, the court shall order the taxes and penalties and the interest thereon, against the lands to be discharged out of the proceeds of the sale or election.
    1. Every person holding lands as guardian, executor, or administrator and neglecting or refusing to list or pay the taxes upon them, in the manner indicated, shall be liable to an action by his or her ward or devisee for any damage sustained by his or her neglect.
    2. Every person having the care of lands as agent or attorney as indicated having funds of the principal in his or her hands, for such purpose, and neglecting or refusing to list or pay the taxes on the lands shall be liable in an action to his or her principal for any damage the principal may have sustained by his or her neglect or refusal.
      1. All ad valorem taxes levied on real and personal property by the several county courts of the state when assembled for the purpose of levying taxes, except taxes on the property of utilities and carriers and all ad valorem taxes on real property held in escrow, are due and payable between the first business day in March and October 15 inclusive in the year succeeding the year in which the levy is made.
        1. Except as provided in § 26-35-601, every taxpayer other than a utility or carrier has the option to pay the current taxes on real property and personal property of the taxpayer in installments as follows:
          1. The first installment of one-fourth (¼) of the amount of the taxes is payable between the first business day in March and the third Monday in April inclusive;
          2. A second installment of one-fourth (¼) or a first installment of one-half (½) if no payment was made before the third Monday in April is payable between the third Monday in April and the third Monday in July inclusive; and
          3. The third installment of one-half (½) is payable between the third Monday in July and October 15 inclusive.
          1. A county collector may authorize the county's taxpayers other than a utility or carrier to pay current real property taxes and personal property taxes in installments in any amount between the first business day in March and October 15 inclusive.
          2. Except as provided in § 26-35-601, a county collector shall not accept payment of delinquent real property taxes from a taxpayer unless the delinquent personal property taxes of the taxpayer are paid in full.
    1. All ad valorem taxes levied on the real and personal property of utilities and carriers are due and payable as follows:
      1. One-fourth (¼) between the first business day in March and the third Monday in April inclusive;
      2. One-fourth (¼) between the third Monday in April and the second Monday in June inclusive; and
      3. One-half (½) between the second Monday in June and October 15 inclusive in the year succeeding the year in which the levy is made.
      1. A county collector shall assess a penalty of ten percent (10%) against all unpaid tax balances remaining after October 15 for every taxpayer other than a utility or carrier or after the prescribed dates listed in subsection (b) of this section for utilities and carriers.
        1. A taxpayer paying in installments under subdivision (a)(2) of this section shall not be assessed a penalty until the taxes become due and remain unpaid after October 15.
        2. However, if the last day for the payment of taxes on any installment is a Saturday, Sunday, or postal holiday, the last day to pay taxes without a penalty is the following business day.
        1. A property tax balance payment is timely received under this subsection if mailed through the United States Postal Service and postmarked by October 15.
        2. If October 15 is a Saturday, Sunday, or postal holiday, a property tax balance payment is timely received if mailed and postmarked through the United States Postal Service the following business day.
    1. The county collector of each county in the State of Arkansas shall receive county warrants in payment of county taxes, and the orders or warrants that may be payable on presentation of any town or city for their respective taxes.
    2. This section shall not be so construed as to compel the county collector to accept any order or warrant that is by the laws of this state required to be refunded.
    1. No county collector or deputy county collector shall, either directly or indirectly, contract for or purchase any orders or warrants issued by the county of which he or she is collector, or any state warrants, town orders, or the orders or warrants of any city, town, or other body politic for which he or she is the collector of taxes, at any discount whatever upon the sum due on those orders or warrants.
    2. If any county collector or deputy county collector, directly or indirectly, contracts for, purchases, or procures any orders or warrants at any discount whatever upon the sum for which they are respectively issued, he or she shall not be allowed, on settlement, the amount of the warrants or orders, or any part thereof, and shall also forfeit the whole amount due on the warrants or orders and the sum of one hundred dollars ($100) for each and every breach of the provisions of this section, to be recovered in a civil action at the suit of the state for the use of the county.
      1. The Treasurer of State or the person to whom the county collector of any county is required to return the state, county, city, town, village, school, or road tax is, respectively, prohibited from receiving from any county collector any warrants, orders, or bonds in payment of taxes collected by him or her or his or her deputies unless with the warrants, orders, or bonds, the county collector shall file his or her affidavit with the Treasurer of State or the person entitled to receive the tax, stating therein that all warrants, orders, and bonds were received at their par value and that he or she has faithfully performed his or her duties as prescribed in this section.
      2. Whoever swears falsely in this affidavit is guilty of perjury and, upon conviction, shall be punished by confinement in the state penitentiary for not less than one (1) nor more than three (3) years.
    1. All county collectors may accept payment of county property taxes, penalties, and associated costs by an approved credit card or debit card.
      1. As authorized by subsection (a) of this section, all county collectors may enter into contracts with credit card companies and may pay the fees normally charged by those companies for allowing the county collector to accept their cards as payment.
        1. When a taxpayer pays his or her property taxes by an approved credit card, the county collector shall assess a service fee equal to the amount charged to the county collector by the credit card issuer.
        2. This charge may be added to and become part of any underlying obligation.
    1. Each county collector in this state shall be charged with the responsibility of collecting personal property taxes shown to be due by the taxpayer as reflected by the records in the county collector's office at the time the taxpayer pays the general taxes due on real estate.
    2. Any county collector willfully accepting payment of general real estate taxes without requiring the payment of personal property taxes due as reflected by the records in the county collector's office shall be deemed guilty of a misdemeanor and upon conviction shall be fined in a sum not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).
      1. Except as provided in subdivisions (c)(2)-(4) of this section, it is the intention of this section to require the collection of personal property taxes as reflected by the records in the office of the county collector and to prevent a taxpayer from paying and the county collector from receiving payment of general real estate taxes without payment of personal property taxes if any personal property taxes are shown to be due.
      2. The provisions of this section shall not prevent any person, firm, partnership, or corporation from paying general real estate taxes on property securing the payment of indebtedness due the person, firm, partnership, or corporation seeking to pay the taxes.
      3. Notwithstanding the other provisions of this section, a county collector shall accept payment of general real estate taxes on a parcel of property at the time the ownership of the property is being transferred if the taxpayer transferring title to the property has paid all delinquent personal property taxes.
      4. Furthermore, a purchaser in a foreclosure sale shall not be responsible for the payment of the personal property taxes required to be paid by this section.
      1. Arkansas Legislative Audit shall require every county collector of taxes to keep any and all tax money collected in a separate account from all other money which the county collector may have in his or her possession.
      2. A county collector shall have no authority to check on this account except in favor of a treasurer or depository to whom he or she is required to pay the money or to himself or herself for commission or salary already earned.
        1. Failure to comply with this section on the part of a county collector shall be a violation and shall render him or her liable to a penalty of not less than twenty-five dollars ($25.00).
        2. Each day's failure shall be considered a separate offense.
      1. Upon finding that public funds and private funds are being jointly deposited or improperly disbursed under this section, the director shall notify immediately the bondsmen of the offending officer and the public of the violation.
      1. Any county collector who shall resign, be removed, or be disqualified shall pay over all moneys, which may be in his or her hands, due the state, county, city, town, or school district, to his or her successor in office and take duplicate receipts therefor.
      2. One (1) of the receipts shall be filed with the county clerk and the other retained by the county collector.
    1. The county clerk shall certify to the Auditor of the State the amount of the receipt, and it shall be the duty of the county collector charged therewith to pay it into the county treasury in the same manner and at the same time as regular revenues are to be paid.
    2. In the receipts, it shall be specified particularly on what account the moneys mentioned were received, whether from taxes or from other sources.
    1. Whenever any county collector dies after he or she has received the tax books for any year and before he or she has collected the taxes charged therein, his or her legal representative shall hand at once to his or her successor, as soon as he or she is appointed and qualified, the tax books and pay at once all moneys, less his or her commission, which have been collected by the deceased county collector from all sources then in his or her hands.
      1. The new county collector shall execute receipts in triplicate, to be attested by the county clerk, for the tax books so delivered and showing the amount already collected upon them and the amount uncollected.
        1. The new county collector shall also execute receipts in triplicate for the amount of taxes collected by the deceased county collector from all sources and paid over to him or her by the executor or administrator, one (1) of which shall be certified by the county clerk to the Auditor of State, who shall charge the new county collector with the balance of the state taxes due on the tax book and the amount paid over to him or her by the executor or administrator of the deceased county collector.
        2. Another receipt shall be filed with the county clerk, who shall charge the new county collector with the balance of taxes due on the tax books and with the amount paid over by the executor or administrator.
    2. The third receipt shall be given to the executor or administrator of the deceased county collector.
    1. The Governor may, by proclamation, extend the time when the penalty shall attach for making distraint, returning delinquent list, advertising and selling delinquent lands, making settlement and paying over the revenue, and for the performance of any other duty by the county collectors so that the taxpayer may have the same time to pay the taxes and the county collector have the same time to perform the duties of his or her office as allowed by law in case the failure or vacancy had not occurred.
    2. The Governor shall, in his or her proclamation, fix the time for the performance of the acts mentioned in this section. A copy shall be filed in the office of the county clerk and recorded in the records of the county court by the county clerk.
    3. The proclamation shall be published in some newspaper in the county for two (2) weeks if a newspaper is published therein.
    4. All acts and duties performed in the time fixed in the proclamation shall be as valid and binding as if performed in the time fixed by the general law.
    1. Any county collector may contract with one (1) or more financial institutions to act as his or her agents to receive real and personal property tax payments on his or her behalf.
    2. Tax payments received under a contract as provided for in this section shall be collected at the same time and in the same manner as all other property tax payments, and no payments shall be collected after the last payment day established by law.
    3. A financial institution receiving tax payments under a contract as provided for in this section, shall, on the first working day of each week, transmit to the county collector all property taxes received during the preceding week.
    4. As used in this section, “financial institution” means any organization or enterprise which receives deposits and forwards checks, drafts, or orders for collection and which is subject to state rules or federal regulation.
    5. Nothing in this section shall permit a county collector to make any payment to a financial institution for receiving real and personal property taxes as provided in this section.
    1. In all counties, including those having two (2) or more levying courts or two (2) or more judicial districts, in which the county collector is required by law to visit each precinct or township in the county for the purpose of collecting taxes due, the county collector shall not be required to make these visits but shall publish notice and collect the taxes as provided by § 26-35-702.
    2. In any county where the county collector is required to go to the various townships, he or she shall publish a notice in a newspaper stating that his or her visits to the several townships will be discontinued. The notice shall state where the taxes may be paid, and, where there are two (2) or more county sites, the notice shall advise the dates upon which taxes may be paid at the respective sites.
    1. Where there are two (2) or more county sites, the tax books shall be kept at one (1) site part of the time and at the other site part of the time, the time to be divided between the two (2) or more sites as in the judgment of the county collector will be proper.
    2. Where there are two (2) or more sites, the notices shall state the dates between which the county collector will be at each county site.
    1. No later than July 1 of each year, the county sheriff or county collector shall be required to mail statements of taxes due by a taxpayer to the address provided by the taxpayer.
      1. No later than July 1 of each year, the county sheriff or collector may in his or her discretion establish an electronic registry allowing each taxpayer to voluntarily register the taxpayer's personal information authorizing statements of taxes due by the taxpayer to be sent electronically using the information provided by the taxpayer.
      2. The county sheriff or county collector in his or her discretion may provide electronically to the taxpayer subsequent statements or notices for property taxes due or delinquent by using the information provided by the taxpayer.
      3. In the event the taxpayer's information changes and the electronic attempt to notify is returned undelivered, it shall be the taxpayer's obligation to furnish the correct information or the tax statements will be sent to the mailing address of the taxpayer.
    2. In the event that the mailing address or electronic address information of the taxpayer changes, the taxpayer has an obligation to furnish the correct mailing address or electronic address information.
    1. Every county collector who mails tax statements may charge the taxpayers a postage fee not to exceed the cost of first-class postage to defray the expense of processing and mailing tax statements.
    2. The postage fee shall be noted on each tax statement and shall be paid at the same time or before the tax is paid.
    3. The taxpayer's receipt shall include the amount of postage fee paid.
      1. Postage fees received shall be accounted for on the county collector's final settlement.
      2. The county collector may use the fees to purchase postage, and any amount of fees collected in any month which are not used for the purchase of postage that month shall be deposited into the county general fund.
    4. Due to the substantial savings in postage, paper, handling, and labor cost from delivery of statements and notices electronically using information provided by the taxpayer, the county sheriff or county collector sending the tax statement and notices may waive the costs for mail delivery from taxpayer property tax statements or may charge the reduced costs of electronic notification.
    1. Real or personal property shall not be returned as delinquent for nonpayment of taxes, nor shall any penalty or interest be added to taxes in excess of the amount required to be paid before the delinquency date under this section, while there is pending in the circuit court, Court of Appeals, or the Supreme Court an appeal from an order of the county court fixing the assessed value of property.
    2. If there has been no final disposition of an appeal before the last day fixed by law for the payment of the taxes without penalty, the taxpayer shall have thirty (30) days after final disposition of the appeal within which to pay any taxes in excess of the amount required to be paid before the delinquency date under this section without penalty or interest.
    3. A property owner appealing a personal property tax assessment to the circuit court shall pay:
      1. To the county collector as otherwise provided by law the amount the taxpayer claims is owed under the personal property tax assessment; and
      2. Into the registry of the circuit court an amount equal to the difference between the personal property tax assessment and the amount the taxpayer claims is owed under the personal property tax assessment.
    4. A property owner appealing a real property tax assessment to the circuit court shall pay to the county collector the least of:
      1. The amount of taxes due on the portion of the taxable value of the real property that is not in dispute, subject to this section;
      2. The amount of taxes due on the real property under the court order from which the appeal is taken; or
      3. The amount of taxes due on the real property based on the previous year's assessment.
      1. In the case of a property owner who elects to pay the amount of taxes under subdivision (d)(1) of this section, the property owner shall include in the complaint filed in the circuit court, or declare by subsequent affidavit filed with the circuit court, not less than sixty (60) days before the last day fixed by law for the payment of taxes without penalty, the taxes due on the portion of the taxable value of the property that is not in dispute or the lawful basis for any claim of exemption.
      2. On the motion of a party, the circuit court with jurisdiction over the appeal shall hold a hearing to review and determine compliance with this section, including verification of the amount of taxes the taxpayer claims is owed under subdivision (d)(1) of this section.
      3. Upon conclusion of the hearing, the circuit court shall order the property owner to pay to the county collector the amount that the circuit court determines is the proper undisputed amount under subdivision (d)(1) of this section.
        1. If the circuit court determines that the property owner has not substantially complied with this section, the circuit court shall dismiss the pending action.
        2. If the circuit court determines that the property owner has substantially but not fully complied with this section, the circuit court shall dismiss the pending action unless the property owner fully complies with the circuit court's determination within thirty (30) days of the determination.
      1. A property owner may include a request in the complaint on appeal to the circuit court, or file a motion with the circuit court, to waive payment of taxes due during the pendency of appeal if the payment would constitute an unreasonable restraint on the party's right of access to the courts.
      2. The request or motion to waive payment shall include a sworn affidavit of inability to pay the taxes at issue.
      3. Upon the filing of a request or motion, the circuit court shall hold a hearing to review the property owner's request and may set terms and conditions on any grant of relief as may be reasonably required by the circumstances.
      4. A property owner may be excused from the payment requirements under this section if upon hearing the circuit court finds that the payment would constitute an unreasonable restraint on the property owner's right of access to the courts.
    5. Except as provided under subsection (f) of this section, a property owner who appeals a property tax assessment to the circuit court shall pay taxes on the property subject to the appeal in the amount required by this section before the last day fixed by law for the payment of taxes without penalty, or the property owner forfeits the right to proceed to a final determination of appeal.
      1. A property owner who pays to the county collector an amount of taxes greater than the amount required by this section does not forfeit the property owner's right to a final determination of the appeal by making the payment.
      2. The property owner may pay an additional amount of taxes at any time.
      3. If the property owner files a proper and timely appeal to the circuit court, taxes paid on the property are considered under protest, whether paid before or after the appeal is filed.
      1. The pendency of an appeal of a property tax assessment does not affect the delinquency date for the taxes on the property subject to appeal.
      2. However, the delinquency date applies only to the amount of taxes required to be paid under this section.
      1. In an appeal of an order of the county court to a circuit court as to the sole claim or issue of whether property is exempt under Arkansas Constitution, Article 16, § 5, the property owner shall not be required to pay any portion of the taxes assessed on the real property at issue in the appeal and shall not be found delinquent for nonpayment of real property taxes during the pendency of the appeal to the circuit court, the Court of Appeals, or the Supreme Court.
        1. Within sixty (60) days before the delinquency date, a party may file a motion, based upon a good faith belief that the personal property at issue in the appeal will be removed from the jurisdiction of the county during the pendency of the appeal, requesting that the court order the property owner to file with the circuit court an irrevocable letter of credit or surety bond in the amount of the personal property taxes due.
        2. If a party elects not to file a motion, the property owner shall not be required to pay any portion of the taxes assessed on the personal property at issue in the appeal and shall not be found delinquent for nonpayment of personal property taxes during the pendency of the appeal to the circuit court, the Court of Appeals, or the Supreme Court.
      2. The property owner may elect to pay any real or personal property taxes due before the date of delinquency under subsection (c) or subsection (d) of this section, and such payment shall not affect the taxpayer's ability to appeal the exempt status of the property to the court of proper jurisdiction.
      3. After final disposition of an appeal:
        1. The property owner shall be required to pay the amount of taxes the court determines is owed, if any, within thirty (30) days of final disposition; and
        2. Any award of a refund shall be made by the county upon the order of a court of proper jurisdiction.
      1. When any person has paid taxes on any real property or personal property, erroneously assessed, as defined and described in § 26-28-111(c), upon satisfactory proof being adduced to the county court of this fact, the county court shall make an order directed to the county treasurer refunding to the person the amount of tax so erroneously assessed and paid.
      2. All erroneous assessment claims for property tax refunds shall be made within three (3) years from the date the taxes were paid.
      3. If an erroneous assessment claim is for erroneous assessments made in two (2) or more tax years, the county court may order that the property tax refund be made in up to two (2) equal annual installments, by December 31 of each year, beginning with the year in which the order is entered.
      4. A clerk of a county court shall not charge a fee for filing a petition with the county court requesting a refund under this section.
    1. The general fund of the county shall be reimbursed by transfer to it from funds of the respective taxing units, and the amount contributed by each taxing unit shall be the amount of the erroneous payment received by the taxing unit.
    1. It is the public policy of this state that circuit courts may, in meritorious litigation brought under Arkansas Constitution, Article 16, § 13, in which the circuit court orders any county, city, or town to refund or return to taxpayers moneys illegally exacted by the county, city, or town, apportion a reasonable part of the recovery of the class members to attorneys of record and order the return or refund of the balance to the members of the class represented.
    2. If, after expiration of a reasonable period of time for the filing of claims for the illegally exacted moneys as ordered by the circuit court, residual funds exist, said residual funds shall be deemed abandoned and escheat to the county, city, or town which exacted same.
      1. All taxes levied on real estate and personal property for the county courts of this state, when assembled for the purpose of levying taxes, are due and payable at the county collector's office between the first business day of March and October 15 inclusive.
      2. All taxes unpaid after October 15 are delinquent.
      1. The county collector shall extend a penalty of ten percent (10%) against all delinquent taxpayers that have not paid their taxes within the time limit specified.
      2. The county collector shall collect the penalty provided in subdivision (b)(1) of this section.
    1. The county collector shall extend an additional penalty of ten percent (10%) upon all delinquent taxpayers if the taxpayers' delinquent personal property taxes are not satisfied or paid in full by October 15 following the purchase of a business or the assets, goods, chattels, inventory, or equipment of a business not in the ordinary course of business.
    2. A penalty shall not be assessed against a taxpayer who is a member of the United States Armed Forces, reserve component of the armed forces, or the National Guard during the taxpayer's deployment plus one (1) tax year after the deployment ends.
    3. When October 15 falls on a Saturday, Sunday, or a holiday observed by the United States Postal Service, the taxes shall become due and payable the following business day that is not a holiday observed by the United States Postal Service.
    1. No taxes returned delinquent shall be paid into the State Treasury except by the county collector.
    2. It shall be the duty of the county clerk to add a penalty of ten percent (10%) upon all taxes returned delinquent, which shall be collected in the manner provided for the collection of delinquent taxes.
        1. No later than December 1 in each year, the county collector shall prepare a list of delinquent personal property taxes and deliver a copy of the list to a legal newspaper of the county.
          1. Within seven (7) days thereafter, the newspaper shall publish the list.
          2. The newspaper shall publish the list in at least seven-point type.
        2. If the newspaper regularly publishes a total market coverage edition or supplement publication that has wider circulation within the county or district, the newspaper may publish the list in that edition or publication.
      1. If there is no newspaper in the county or district, the publication shall be in the nearest newspaper having a general circulation in the county or district for which the list is being published.
    1. The publication shall show, besides the name of the taxpayer, the taxpayer's school district and the total amount of taxes delinquent, including penalties. The publication shall be in substance as follows:
      1. The newspaper publishing this list shall receive as publication cost the sum of one dollar and twenty-five cents ($1.25) per name, per insertion, which sum, together with fifty cents (50¢) per name for the county collector preparing and furnishing the list, shall be charged to the delinquent taxpayer and shall be paid by the county collector from any moneys in the county collector's possession derived from payment of personal property taxes.
      2. The receipt for the payment, verified by the certificate of the county clerk as to its correctness, shall entitle the county collector to a credit for the amount so paid.
    2. This section shall be cumulative to all existing laws relative to the collection of personal property taxes.
    1. The delinquent list, together with the fees allowed to any county collector, shall be delivered to his or her successor, and it shall be returned to the county clerk by the outgoing county collector for that purpose, and so on until the whole shall be collected.
    2. After the list has been returned two (2) years, the county court shall have power to strike all names of persons who, in the opinion of the county court, own no property out of which the taxes due on the list can be made by sale or otherwise.
    3. The county court shall have the authority to strike off the delinquent and assessment list at any time the names of persons who own mobile homes which are assessed as real property, improvement only, who, in the opinion of the county court, have vacated the jurisdiction or own no property out of which the taxes due can be made by sale or otherwise.
      1. At any time after October 15, the county collector shall distrain sufficient goods and chattels belonging to a person who owes taxes upon the person's personal property to pay the taxes due upon the personal property and a penalty of twenty-five percent (25%) on the taxes due.
      2. If the county collector distrains goods and chattels under subdivision (a)(1) of this section, the county collector shall immediately proceed to advertise the sale of the goods and chattels in three (3) public places in the county, stating the time when and the place where the goods and chattels will be sold.
      3. The county collector shall collect taxes and penalties under this subsection and deposit the taxes and penalties under this subsection into the county school fund.
      1. If the taxes for which property is distrained, and costs which shall accrue thereon are not paid before the day appointed for sale, which shall not be less than ten (10) days after taking the property, the county collector shall proceed to sell the same at public vendue, or so much thereof as will be sufficient to pay the taxes and the costs of the distress and sale.
      2. The county collector shall not distrain any goods and chattels for taxes levied on real property, except as provided in § 26-3-204.
      1. The county collector is authorized and empowered to levy on and sell the goods and chattels of the person liable for taxes provided, in the same manner and under the same restrictions as goods and chattels are required to be levied and sold under execution on judgment at law, when not inconsistent with the provisions of this subchapter.
      2. No goods and chattels of any person shall be exempt from levy and sale.
    1. The county collector is allowed the same fees for making distress and sale of goods and chattels for the payment of taxes which are allowed by law to the county sheriff for making levy and sale of property on execution under § 21-6-307 for each delinquent taxpayer.
      1. If a taxpayer operating a business in a county is delinquent in the payment of personal property taxes for personal property owned by or used in the business, then following the certification and publication of delinquency under § 26-36-203, the county collector may distrain goods or chattels of the taxpayer owned by or used in the business under subsection (a) of this section by publication of a Notice of Distraint and Tax Sale in three (3) public places in the county or in a newspaper of general circulation in the county.
      2. The Notice of Distraint and Tax Sale shall contain:
        1. The location, date, and time of the sale;
        2. The name of the taxpayer and business under which the goods or chattels to be sold is assessed;
        3. The principal sum of personal property taxes owed with a certification of the principal sum by the county collector;
        4. The following specific information:
        5. A statement that it is a Class B misdemeanor to remove, destroy, or deface the Notice of Distraint and Tax Sale or to interfere or obstruct the sale of or the access to the goods or chattels on the date of the sale by the county collector, the county sheriff, or their deputies.
      3. The county collector shall provide a copy of the Notice of Distraint and Tax Sale to the taxpayer by regular mail or by posting a copy at the physical location where the goods or chattels are held.
      4. The Notice of Distraint and Tax Sale shall be posted conspicuously at the location of the sale.
      5. In lieu of physically securing the goods or chattels or storing or transporting the goods or chattels to another location for sale, the sale may be held at any place of business, warehouse, storeroom, or facility owned or under the possession of the taxpayer, including without limitation the current location of the goods or chattels to be sold.
      6. It is a Class B misdemeanor to knowingly remove, destroy, or deface a Notice of Distraint and Tax Sale posted under this section or to knowingly interfere or obstruct the sale or access of the county collector, the county sheriff, or their deputies to the goods or chattels on the date of the sale.
      1. If the tax upon personal property, moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise of a person, association, or corporation remains unpaid after October 15 in any year and the county collector is unable to find any personal property of the person, association, or corporation on which to levy to make the taxes due, then the county collector shall present the account for taxes to any person who may be indebted to the person, association, or corporation, and demand the payment of the taxes.
      2. The person to whom the account for taxes is presented shall pay over to the county collector the amount of the taxes that the person owes up to the amount of the debt and take the county collector's receipt for the payment. The receipt shall be taken in all courts of this state as payment on the taxpayer's indebtedness to the full amount expressed on the county collector's receipt.
    1. If the person should fail or refuse, on demand, to pay over the amount of the tax that he or she owes to the county collector, the county collector shall file a statement of the amount of the tax with the person so refusing, which shall operate as a garnishment upon the person so served. The county collector shall proceed to collect the taxes in the manner fixed by law in cases of garnishment.
    2. No person shall be compelled to pay any debt before it may be due nor a greater amount than he or she may be owing the person, corporation, or association.
    3. The cost of garnishment shall be paid by the party refusing to pay the taxes when so requested.
    1. Each county collector in making returns of the delinquent lists of personal property to the county clerk shall note on the margin of the returns the county in this state to which any delinquent taxpayer may have removed or resides in, with the date of his or her removal, if the county collector is able to ascertain that fact.
    2. The county clerk shall immediately forward to the county clerk of any county of this state, which any delinquent taxpayer has removed to or resides within, a certified statement or account of the taxes so assessed and not paid. The certified statement shall specify the value of the property on which the taxes were levied and the amount of the taxes levied thereon, with the penalty and cost. The county collector shall proceed to collect the delinquent taxes in the same manner, and with like authority, as prescribed in this subchapter for collecting delinquent taxes upon personal property and shall make return thereof to the county collector of the proper county.
    1. The county collector may collect, at any time, all delinquent personal property tax in his or her county, or any that may be sent from another county, by the sale of property or otherwise, and the county collector shall make returns of the amount so collected to the proper counties and officers.
      1. The county collector shall pay over to the county treasurer on the first day of each month or within ten (10) days after the first day of each month all amounts collected for his or her county under this section.
      2. However, upon a certificate of distribution of the amounts collected under this section being prepared by the county clerk, county collector, or other county officer designated pursuant to § 26-28-102(a), which certificate shall be issued on or before the thirtieth day of each month, the county treasurer shall transfer to the various funds the amount due each fund.
      1. All costs associated with such delinquent personal property taxes shall be prorated to the original taxing entities.
      2. All penalties shall be deposited as county revenues into the county general fund.
    2. For purposes of this section, the costs and penalties associated with delinquent personal property taxes shall not be considered a portion of the county collector's revenue in calculating excess commissions.
      1. When the ad valorem taxes on working interests, royalty interests, or overriding royalty interests in oil or gas of any taxpayer is delinquent for a period of one hundred eighty (180) days or more, any one (1) or more taxing units which are entitled to a portion of the delinquent taxes when collected shall have a cause of action against the delinquent taxpayer for that portion of the delinquent taxes and costs of collection, including the penalty and interest thereon, to which the taxing units are entitled, plus a reasonable attorney's fee.
        1. Any such action shall be brought in the circuit court of the county in which the delinquent taxpayer resides or in which property of the delinquent taxpayer is situated.
        2. Any judgment awarded a taxing unit in such cause of action shall be enforceable to the same extent and in the same manner as other civil judgments.
      1. Any taxpayer offering to redeem tax-delinquent property after an action has been filed as authorized in this section shall be required to pay costs, including attorney fees, incurred by any taxing unit in pursuing its remedies under this section.
      2. When any judgment rendered against a delinquent taxpayer pursuant to this section is satisfied, the tax liability on the property and the amount required to be paid to redeem the property shall be reduced by the amount of the taxes, penalty, and interest included in the judgment.
        1. If a county collector demands payment of property tax due on mineral interests by a known owner of mineral interests at the taxpayer's last known address and the taxpayer fails to pay the property tax due on mineral interests by October 15, the county collector, after December 1, may:
          1. Present a certified statement or account for taxes to any person who has in the person's possession funds that are:
            1. Derived from the property on which the delinquent taxes are outstanding; and
            2. Due and owing to the delinquent taxpayer; and
          2. Demand payment of the delinquent taxes plus any penalties and interest.
          1. For property taxes on mineral interests that are delinquent after December 1 and at the time the certified statement or account is presented, an additional penalty of ten percent (10%) of the amount of the delinquent property taxes shall be assessed as an administrative collection fee.
          2. Upon collection of the delinquent property taxes and any penalties and interest from the person receiving the certified statement or account, the county collector shall pay, upon request, one-half (½) of the penalty assessed and collected under subdivision (a)(1)(B)(i) of this section to the person making the payment for the administrative costs incurred in collecting and paying to the county collector the delinquent taxes, penalties, and interest.
          3. A portion of the administrative collection fee retained by the county collector under this section shall represent the interest continuing to accrue for the period of up to ninety (90) days from the date that the certified statement or account is presented until the certified statement or account is returned with payment. No other form of interest is due from the person receiving the certified statement or account.
        2. Before a county collector may initiate collection proceedings under this section:
          1. The county collector shall:
            1. Prepare a list of the delinquent taxes on mineral interests in his or her county; and
            2. Provide the list, including without limitation the following information, to the Association of Arkansas Counties by December 1 of each year:
              1. The name and last known address of the owner of the mineral interests;
              2. The applicable well name, uncontrolled lease name, or unitized area name as recognized by the Oil and Gas Commission;
              3. The county, section, township, and range of the property containing the mineral interests;
              4. Notice of the penalty provided under subdivision (a)(1)(B)(i) of this section; and
              5. Notice that the county collector may seek collection under this section if the property taxes, penalties, and interest remain unpaid after December 1;
          2. The Association of Arkansas Counties shall:
            1. Create a website that is accessible by the public and is dedicated to publishing notice of delinquent taxes on mineral interests; and
              1. Within seven (7) days of receiving a list under subdivision (a)(1)(C)(i)(b) of this section, publish the list to the website created under subdivision (a)(1)(C)(ii)(a) of this section.
              2. The publication required under this subdivision (a)(1)(C) shall be in substantially the following form:
          3. The county collector shall:
              1. Publish notice in a newspaper that has general circulation in the county or district for which the list is being published.
              2. If there is no newspaper in the county or district, the publication of notice shall be in the nearest newspaper having a general circulation in the county or district for which the list is being published.
              3. The notice required under subdivision (a)(1)(C)(iii)(a)(1) of this section shall provide the website at which the delinquent mineral interest tax list may be found;
            1. Publish notice at the county courthouse; and
            2. Provide notice through the county website.
        1. Except as provided in subdivision (a)(2)(C) of this section, the person to which the certified statement or account for taxes is presented shall pay the county collector the amount of the taxes, penalties, and interest that the delinquent taxpayer owes up to the amount of funds the person has in the person's possession that is due and owing to the delinquent taxpayer.
          1. The county collector shall provide a copy of the county collector's receipt for the payment to the person making the payment under this section and to the delinquent taxpayer at the delinquent taxpayer's last known address.
          2. The receipt provided under subdivision (a)(2)(B)(i) of this section shall be accepted in the county collector's office and in all courts of the state as payment on the delinquent taxpayer's indebtedness of the amount expressed on the county collector's receipt.
          1. The county collector shall not receive or accept a partial payment of the delinquent taxes, penalties, and interest due.
          2. If, at the end of the ninety-day period allowed for the return of the certified statement or account, a person to which the certified statement or account for taxes is presented has in the person's possession an amount of funds due and owing to the delinquent taxpayer that is less than the amount of the taxes, penalties, and interest that the delinquent taxpayer owes, the person to which the certified statement or account is presented is not required to pay any amount.
      1. Service of the certified statement or account of the tax under this section shall operate as a levy upon the person served.
      2. The certified statement or account shall:
        1. State the name of the delinquent taxpayer and the delinquent taxpayer's last known address;
          1. Identify the delinquent taxpayer's assessed property interests.
          2. The county collector shall include in the certified statement or account the identification information provided in the notice of publication made under subdivision (a)(1)(C) of this section and a copy of the tax statements containing the delinquent taxpayer's last known address;
        2. State that the certified statement or account is returnable within ninety (90) days from receipt by the person indebted to the delinquent taxpayer;
        3. State the amount of taxes, penalties, and interest owed;
        4. Be returned with payment of the amount owed and delinquent as reflected on the certified statement or account; and
        5. Be effective until the earlier of the following:
          1. The date the certified statement or account is paid in full; or
          2. One (1) year from the date the certified statement or account is presented for payment under this section.
      3. A person shall not be compelled to pay the following:
        1. Any amount before it is due and owing to the delinquent taxpayer; or
        2. A greater amount than is owed to the delinquent taxpayer.
      1. A person making a payment to a county collector under this section is not liable to the delinquent taxpayer to which the person is indebted for complying with a demand for payment under this section.
      2. A payment made under this section is considered to be made to the delinquent taxpayer and satisfies any contractual obligation or indebtedness due and owing the delinquent taxpayer by the person making the payment on the certified statement or account for the amount expressed on the county collector's receipt.
    1. The purpose of this subchapter is to establish as policy that all claimant agencies and the Revenue Division of the Department of Finance and Administration shall cooperate in identifying debtors who:
      1. Qualify for refunds from the division; and
      2. Owe money to the state, to an Arkansas county, city, or town, or to a housing authority created under § 14-169-101 et seq., through its various claimant agencies.
    2. It is also the intent of this subchapter that procedures be established for setting off against any such refund the sum of any debt owed to the state, to an Arkansas county, city, or town, or to a housing authority created under § 14-169-101 et seq.
    1. All claimant agencies shall submit, for collection under the procedure established by this subchapter, all debts which they are owed, except in cases where the agencies are advised by the Attorney General not to submit a claim because the validity of the debt is legitimately in dispute, because an alternative means of collection is pending and believed to be adequate, or because such a collection attempt would result in a loss of federal funds.
    2. As a condition precedent to setoff, all claimant agencies shall obtain the full name and Social Security number and submit this information to the Revenue Division of the Department of Finance and Administration and, whenever possible, also obtain and submit the address and any other identifying information required by rules promulgated by the division pursuant to the authority of § 26-36-320 for any person for which the claimant agencies provide any service or transact any business and who the claimant agencies can foresee may become a debtor under the terms of this subchapter.
      1. A claimant agency seeking to attempt collection of a debt through setoff shall notify, in writing, the Revenue Division of the Department of Finance and Administration and supply the debtor's name, Social Security number, and any other information necessary to identify the debtor whose refund is sought to be set off.
      2. Notification to the division and the furnishing of identifying information must occur on or before December 1 in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified, the notification shall be effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the division.
      1. The division shall determine whether the debtor to the claimant agency is entitled to a refund.
      2. Upon determination by the division that a debtor specified by a claimant agency qualifies for such a refund and that a refund is pending, the division shall specify its sum and indicate the debtor's address as listed on the tax return.
      3. Each claimant agency must submit all claims for any year for collection under this subchapter to the division at one (1) time.
      4. Claims to be set off shall be submitted in a form compatible with the data processing equipment of the division, or the submitting claimant agency shall pay the actual cost of converting their list of claims to a form which can be used by the division for effecting setoff.
    1. Unless stayed by court order, the division shall, upon certification as provided in this subchapter, set off the certified debt against the refund to which the debtor would otherwise be entitled.
    1. The claimant agency shall provide written notice to the debtor whose debt has been certified to the Revenue Division of the Department of Finance and Administration of its intention to intercept the debtor's tax refund.
      1. The contents of the written notification to the debtor and the division's copy of the setoff claim shall clearly set forth:
        1. The basis for the claim to the refund;
        2. The intention to apply the refund against the debt to the claimant agency;
        3. The debtor's opportunity to give written notice of intent to contest the validity of the claim before the claimant agency within thirty (30) days of the date of the mailing of the notice;
        4. The mailing address to which the application for a hearing must be sent; and
        5. The fact that failure to apply for a hearing in writing within the thirty-day period will be deemed a waiver of the opportunity to contest the claim causing final setoff by default.
      2. The notification form shall be approved by the Secretary of the Department of Finance and Administration.
    2. The written application by the debtor for a hearing shall be effective upon mailing the application postage prepaid and properly addressed to the claimant agency.
    1. If a claimant agency receives written application of the debtor's intention to contest at hearing the claim upon which the intended setoff is based, it shall grant a hearing according to procedures established under the Arkansas Administrative Procedure Act, § 25-15-201 et seq. Additionally, it shall be determined at the hearing whether the claimed sum asserted as due and owing is correct, and if not, an adjustment to the claim shall be made.
    2. Pending final determination at hearing of the validity of the debt asserted by the claimant agency, no action shall be taken in furtherance of collection through the setoff procedure allowed under this subchapter.
    3. No issues may be considered at the hearing which have been previously litigated.
    1. Upon final determination, through hearing provided for by this subchapter, of the debt due and owing the claimant agency or upon the debtor's default for failure to contest the claimant agency's right to setoff as provided for in this subchapter, mandating timely request for review of the asserted basis for setoff, the Revenue Division of the Department of Finance and Administration shall hold for setoff any refund as defined in this subchapter determined to be available to the individual debtor.
    2. Any changes to the original debt certified will be accepted only if the new amount is less than the debt originally certified. Such changes will be forwarded to the division in writing and in a format acceptable to the division. Debtors' names may be deleted from the debt certification listing upon written notice to the division by the claimant agency.
    3. Upon determination that a refund is available to a debtor who has previously been certified as owing a debt to the claimant agency, the division shall finalize the setoff by transferring the refund amount, up to the amount of the debt certified, to the claimant agency and by refunding any remaining balance to the debtor.
    1. When a taxpayer who is a debtor as defined in this subchapter has filed a joint return for which he or she is due a refund or has filed a separate return on the same form resulting in a joint refund, the entire amount of the refund shall be subject to setoff.
      1. The Secretary of the Department of Finance and Administration shall notify each taxpayer due a joint refund of the amount and the date of a proposed setoff for a debt certified by a claimant agency to the Revenue Division of the Department of Finance and Administration.
      2. The notice under subdivision (b)(1) of this section shall be in writing and sent to the address listed on the taxpayer's most recently filed income tax return.
        1. A taxpayer who claims that he or she is not a debtor of a claimant agency may seek administrative relief by filing a written protest under oath within thirty (30) days after the notice under subdivision (b)(1) of this section is received.
        2. The written protest shall be signed by the nondebtor taxpayer or the nondebtor taxpayer's authorized agent and include the nondebtor taxpayer's reasons for opposing the proposed setoff.
      1. The nondebtor taxpayer may request the secretary to consider his or her request for relief upon written documents furnished by the nondebtor taxpayer or upon the written document and the evidence produced by the nondebtor taxpayer at a hearing conducted under the Arkansas Tax Procedure Act, § 26-18-101 et seq.
      2. The nondebtor taxpayer's protest shall include documentation supporting the proportionate share of the nondebtor taxpayer's payment of tax and the resulting amount of the joint refund that the nondebtor taxpayer claims is not subject to setoff.
    2. A nondebtor taxpayer who requests the secretary to render his or her decision based on written documents is not entitled by law to any other administrative hearing before the secretary's rendering of his or her decision.
    3. Administrative relief shall not be available to a nondebtor taxpayer who fails to protest a proposed setoff within the thirty (30) days after the notice under subdivision (b)(1) of this section is received.
      1. If a taxpayer requests a hearing in person rather than on written documents, a hearing officer shall set the time and place for hearing on the written protest and shall give the nondebtor taxpayer reasonable notice of the hearing.
      2. At the hearing, the nondebtor taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.
      3. After the hearing, the hearing officer shall render his or her decision in writing and shall serve copies upon both the nondebtor taxpayer and the claimant agency.
    4. The hearings on written protests and determinations made by the hearing officer are not subject to the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
      1. After the issuance and service on the taxpayer of a decision of the hearing officer to sustain the setoff of the joint refund, a nondebtor taxpayer may seek judicial relief from the decision by filing suit within thirty (30) days after the date of the final determination of the hearing officer.
      2. Jurisdiction for a suit to contest a determination of the hearing officer under this section shall be in the Pulaski County Circuit Court or the circuit court of the county where the nondebtor taxpayer resides, and the matter shall be tried de novo.
    5. This section is the sole means by which a nondebtor taxpayer may challenge a proposed setoff for the benefit of a claimant agency.
    1. Upon effecting final setoff, the Revenue Division of the Department of Finance and Administration shall periodically write checks to the respective claimant agencies for the net proceeds collected on their behalf.
        1. For purposes of this subchapter, except as provided under subdivision (b)(1)(B) of this section, five percent (5%) of the proceeds collected by the division through setoff shall represent the division's cost of effecting setoff, and these costs shall be charged to the respective claimant agency as a collection assistance fee.
        2. If the claimant agency is a circuit court, county court, district court, or city court, or a housing authority created under § 14-169-101 et seq., ten percent (10%) of the proceeds collected by the division through setoff shall represent the division's cost of effecting setoff and shall be charged to the respective circuit court, county court, district court, or city court, or housing authority as a collection assistance fee.
      1. The collection assistance fees paid to the division shall be deposited into the State Treasury for credit to the Constitutional Officers Fund and the State Central Services Fund.
      1. Simultaneously with the transmittal of a check for net proceeds collected to a claimant agency, the Revenue Division of the Department of Finance and Administration shall provide the claimant agency with an accounting of the setoffs finalized for which payment is being made.
      2. The accounting shall, whenever possible, include:
        1. The full names of the debtors;
        2. The debtors' Social Security numbers;
        3. The gross proceeds collected per individual setoff;
        4. The net proceeds collected per setoff; and
        5. The collection assistance fee charged per setoff.
    1. Upon receipt by a claimant agency of a check representing net proceeds collected on a claimant agency's behalf by the division and an accounting of the proceeds as specified under this section, the claimant agency shall credit the debtor's obligation with the gross proceeds collected.
    1. Notwithstanding § 26-18-303 or any other provisions of law prohibiting disclosure by the Revenue Division of the Department of Finance and Administration of the contents of taxpayer records or information and notwithstanding any confidentiality statute of any claimant agency, all information exchanged among the division, claimant agency, and the debtor which is necessary to accomplish and effectuate the intent of this subchapter is lawful.
    2. The information obtained by a claimant agency from the division in accordance with the exemption allowed by subsection (a) of this section shall only be used by a claimant agency in the pursuit of its debt collection duties and practices, and any person employed by or formerly employed by a claimant agency who discloses any such information for any other purpose, except as otherwise allowed by § 26-18-303, shall be penalized in accordance with the terms of that statute.
    1. The Secretary of the Department of Finance and Administration may enter into an agreement with the Internal Revenue Service to setoff state income tax refunds to satisfy a past-due and legally enforceable debt to the Internal Revenue Service.
    2. This subchapter shall apply to the setoff authorized by this section, except to the extent that any provision conflicts with this section.
    3. In addition to the applicable requirements and procedures under this subchapter, a setoff is not allowed for debts to the Internal Revenue Service unless the Internal Revenue Service complies with all notice and procedural requirements under federal law concerning the levy of a state tax refund.
    4. The setoff and payment to the Internal Revenue Service of an income tax refund due to a taxpayer in this section shall be made from a refund amount due to the taxpayer after the setoff of the taxpayer's refund to claimant agencies other than the Internal Revenue Service.
        1. All lands upon which the taxes have not been paid for one (1) year following the date the taxes were due, October 15, shall be forfeited to the state and transmitted by certification to the Commissioner of State Lands for collection or sale.
        2. The Commissioner of State Lands may accept an electronic certification of tax-delinquent parcels from a county.
      1. Tax-delinquent lands shall not be sold at the county level.
    1. The county collector shall hold all tax-delinquent lands in the county for one (1) year after the date of delinquency, and, if the lands are not redeemed by the certification date, which shall be no later than July 1 of the following year, the county collector shall transmit it to the state by certification, after notice as provided in this chapter, indicating all taxes, penalties, interest, and costs due and the name and last known address of the owner of record of the tax-delinquent lands.
    2. Upon receipt of the certification, title to the tax-delinquent lands shall vest in the State of Arkansas in care of the Commissioner of State Lands.
    1. The county collector in each county shall, not less than thirty (30) days nor more than forty (40) days prior to the certification of the land, publish in a newspaper of general circulation in the county:
      1. A list of real property not previously redeemed;
      2. The names of the owners of record;
      3. The amount of the taxes, penalties, interest, and costs necessary to be paid to redeem the property;
      4. The date upon which such period of redemption expires; and
      5. Notice that unless the property is redeemed prior to the expiration of the period of redemption, the lands will be forfeited to the state.
    2. Fees for the publication shall be the same as set forth in § 26-37-107.
    1. Prior to certification to the Commissioner of State Lands, the county assessor shall:
      1. Verify the assessment to establish value on all parcels to be certified;
      2. Verify the name and last known address of the owner of record of the tax-delinquent land; and
      3. Determine whether the tax-delinquent land exists.
    2. If the land is found to be nonexistent, the county assessor shall remove the delinquent entry from the assessment rolls.
    3. No tax-delinquent lands shall be certified to the Commissioner of State Lands without the county assessor's verification.
    1. All costs of notice shall be added to the costs to be collected from the purchaser or redeemer.
    2. Costs of notice shall include, but not be limited to, certified mail costs, newspaper and catalog costs, and title work.
    1. The Commissioner of State Lands may charge a collection fee for each deed issued by the Commissioner of State Lands, whether the land is redeemed or sold.
    2. The collection fee under this section shall be established by rule adopted by the Commissioner of State Lands.
      1. However, the collection fee under this section shall not exceed the costs expended by the Commissioner of State Lands in producing or filing the deed.
      2. As used in subdivision (c)(1) of this section, “costs” means the actual costs expended by the Commissioner of State Lands plus three percent (3%) of the actual costs expended by the Commissioner of State Lands.
      1. The county collectors of this state shall cause a list of the delinquent lands in their respective counties, as corrected by the county collectors, to be entered in a permanent record appropriately labeled.
      2. The list shall be a permanent public record and open to the inspection of the public at all times.
    1. The county officer designated by the quorum court under § 26-28-102 shall certify that the total amount of tax-delinquent lands in the permanent record under subsection (a) of this section is equal to the credit allowed the county collector for tax-delinquent lands on the current tax settlement.
    2. The record, so certified, shall be evidence of the facts contained in the list and certificate.
        1. The county collectors of this state shall cause the list of the delinquent lands in their respective counties to be prepared and a copy of the list to be delivered to a legal newspaper of the county by no later than December 1 of each year.
          1. Within seven (7) days thereafter, the newspaper shall publish the list.
          2. The newspaper shall publish the list in at least seven-point type.
        2. If the newspaper regularly publishes a total market coverage edition or supplement publication that has wider circulation within the county or district, the newspaper may publish the list in that edition or publication.
      1. If there is no newspaper in the county or district, the publication shall be in the nearest newspaper having a general circulation in the county or district for which the list is being published.
      2. The list of delinquent lands shall contain at least the name of the owner and the legal description of the property as was recorded on the tax book.
    1. The publication shall be in substance as follows:
      1. The legal fee for each required publication of delinquent real property tax lists shall be one dollar and fifty cents ($1.50) per tract per insertion.
      2. The fee shall be added as costs of forfeiture and shall be paid by the county collector from any moneys in the county collector's possession derived from the payment of real property taxes.
      3. The receipts for the payment, verified by the certificate of the county clerk as to its correctness, shall entitle the county collector to a credit for the amount so paid.
    2. The requirements of this section do not apply to delinquent taxes on mineral interests, which shall comply with the requirements stated in § 26-36-213.
      1. A county collector may charge a fee of two dollars and fifty cents ($2.50) for the issuance of each certificate of land redemption for each parcel of tax-delinquent land redeemed in the county collector's office.
      2. The fee under this subsection shall be deposited into the county general fund.
    1. The county collector shall accept payment for the redemption of tax-delinquent land that has not been transferred to the Commissioner of State Lands.
    2. The county collector shall pay over to the county treasurer on the first of each month or within ten (10) days thereafter all amounts collected under this section. However, upon a certificate of distribution of the amounts collected under this section being prepared by the county clerk or county collector, which certificate of distribution shall be issued on or before the thirtieth day of each month, the county treasurer shall transfer to the various funds the amount due each fund, such as the county, school, or municipality fund, from the amounts collected under this section.
      1. The Commissioner of State Lands shall publish a notice of sale of land upon which the ad valorem property taxes have not been paid in a newspaper having general circulation in the county where the land is located.
        1. The publication fee for the notice shall be adopted by rule of the Commissioner of State Lands.
          1. However, the fee under this section shall not exceed the costs expended by the Commissioner of State Lands in producing, filing, or performing the deed.
          2. As used in subdivision (a)(2)(B)(i) of this section, “costs” means the actual costs expended by the Commissioner of State Lands plus three percent (3%) of the actual costs expended by the Commissioner of State Lands.
    1. The notice shall:
      1. Contain the assessed value of the land;
      2. Contain the amount of taxes, interest, penalties, and other costs due on the land;
        1. Contain the name of the owner, the legal description, and parcel number of the land.
        2. A part or abbreviated legal description shall be sufficient in the notice if the name of the owner and parcel number are listed;
      3. Contain a list of all interested parties; and
      4. Indicate that the land will be sold to the highest successful bidder if the bid is equal to at least the amount of delinquent taxes, penalties, interest, and the costs of the sale.
    2. The successful bidder shall pay all taxes, interest, penalties, and other costs.
      1. Failure of the notice to contain the information required in subsection (b) of this section does not invalidate an auction sale of the land unless an owner or interested party did not receive notice in substantial compliance with § 26-37-301.
      2. Only an owner or interested party that fails to receive notice in substantial compliance with § 26-37-301 may challenge the validity of the publication notice.
    3. As used in this subchapter, “owner” and “interested party” mean the same as defined in § 26-37-301.
      1. Bidders may bid at the sale or mail their bid to the office of the Commissioner of State Lands.
      2. Bids shall be delivered at the appropriate place before the deadline established in the notice of the sale.
      1. If at the scheduled public sale a person or entity does not bid at least the amount of delinquent taxes, penalties, interest, and the costs of the sale, the Commissioner of State Lands may offer to sell tax-delinquent land at a post-auction private sale.
        1. If tax-delinquent land is offered at a post-auction private sale within the first two (2) years following the public sale under subdivision (b)(1) of this section, the tax-delinquent land shall be offered for at least the amount of the delinquent taxes, penalties, interest, and the costs of the sale.
        2. If tax-delinquent land is offered two (2) years or more following the public sale under subdivision (b)(1) of this section, the sale of the tax-delinquent land may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units.
      2. The Commissioner of State Lands shall submit quarterly reports to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, listing all tax-delinquent land sold at a post-auction private sale under this section.
      1. Except as provided in subdivision (c)(2) of this section, the Commissioner of State Lands shall conduct tax-delinquent sales in the county where the land is located.
      2. If the Commissioner of State Lands determines that sufficient parcels of land located in one (1) county do not exist to justify a single sale in one (1) county, the Commissioner of State Lands may hold a tax-delinquent land sale in one (1) location and sell land located in more than one (1) county if the counties are adjoining counties.
    1. The sales shall be conducted on the dates specified in the notices required by this subchapter.
      1. After a sale of the land by the Commissioner of State Lands, including a post-auction private sale, the Commissioner of State Lands shall notify the owner and all interested parties of the right to redeem the land within ten (10) days, excluding Saturdays, Sundays, and legal holidays, after the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice.
      2. The notice under subdivision (e)(1) of this section shall be sent by regular mail to the last known address of the owner and all interested parties.
      3. If the land is not redeemed, a limited warranty deed shall be issued by the Commissioner of State Lands to the purchaser.
    2. As used in this section, “interested party” has the same meaning as in § 26-37-301.
    1. If the tax-delinquent land is sold, the Commissioner of State Lands shall convey the tax-delinquent land by issuing a limited warranty deed to the land.
      1. Except as provided in subdivision (b)(2) of this section, an action to contest the validity of a conveyance under this section or a negotiated sale under § 26-37-202 is barred if not commenced within ninety (90) days after the date of the conveyance.
      2. A cause of action by a person suffering a mental incapacity, a minor, or a person serving in the United States Armed Forces during time of war during the ninety-day period under subdivision (b)(1) of this section is barred if not commenced within two (2) years after the disability is removed, the minor reaches majority, or the person is released from active duty with the United States Armed Forces during time of war.
    2. A deed issued after January 1, 1987, by the Commissioner of State Lands is not void or voidable on the ground that the county did not strictly comply with the laws governing tax-delinquent land.
    3. This section does not prevent a taxpayer from contesting the validity of a deed issued by the Commissioner of State Lands on the ground that taxes have actually been paid.
    1. In the event the sale is set aside by legal action or if the land is proven to be nonexistent or double assessed, the purchaser shall be entitled to reimbursement of moneys paid.
    2. The Commissioner of State Lands shall have the authority to set aside any sale. In the event the Commissioner of State Lands determines that a sale shall be set aside, the purchaser may be entitled to reimbursement of moneys paid to the Commissioner of State Lands.
    3. In cases where sales may be set aside by the Commissioner of State Lands or by legal action by the record owner or the heirs or assigns of the record owner, the record owner or the heirs or assigns of the record owner shall pay all back taxes, penalties, interest, and costs charged against the land.
    4. If the Commissioner of State Lands determines that the owner and all interested parties did not receive the required notice of sale and right to redeem, the Commissioner of State Lands shall:
      1. Set aside the sale; or
      2. Notify the owner and interested parties of the reasons why the Commissioner of State Lands does not believe the sale should be set aside.
    5. As used in this section, “interested party” means the same as in § 26-37-301.
    6. The Commissioner of State Lands shall not be liable for any monetary damages to any owner, interested party, or purchaser of tax-delinquent land for any action taken or any omission of action related to the sale of tax-delinquent land.
    7. An owner or interested party shall tender cash or certified funds, including without limitation a money order, cashier's check, or certified bank check equal to the amount of all taxes, penalties, interest, and costs charged against the tax-delinquent land:
      1. Into the registry of the court before filing a complaint, counterclaim, cross-claim, third-party complaint, or any other pleading to set aside a sale of the tax-delinquent land; or
      2. With the Commissioner of State Lands upon request by the Commissioner of State Lands before asking the Commissioner of State Lands to set aside a sale of the tax-delinquent land.
    1. All moneys collected by the Commissioner of State Lands from the sale or redemption of tax-delinquent lands shall be distributed as follows:
        1. First, to the Commissioner of State Lands, the penalties, the collection fees, the sale costs, and the other costs as prescribed by law.
        2. The sale costs include without limitation fees for title work;
      1. Second, to each county an amount equal to the taxes due plus interest and costs to the county as certified by the county collector, which amount shall be held in an escrow fund administered by and remitted to the county within one (1) calendar year of the receipt of the moneys by the Commissioner of State Lands;
        1. Third, to each county an amount equal to the delinquent personal property taxes, plus penalty, of the owner or owners of the tax-delinquent land as certified by the county collector, which amount shall be held in an escrow fund administered by and remitted to the county after one (1) calendar year of the receipt of the moneys by the Commissioner of State Lands.
        2. The Commissioner of State Lands shall review the information provided by the county collector and any other interested party to ascertain:
          1. Whether the personal property tax and penalty qualifies to be withheld from the tax-delinquent land sale proceeds; and
          2. The amount of personal property tax and penalty that qualifies under this subdivision (a)(3) to be withheld.
        3. If the Commissioner of State Lands is required to make a refund of the personal property taxes withheld under subdivision (a)(3)(A) of this section to a purchaser of tax-delinquent lands for any reason, the amount of the refund shall be recovered by the Commissioner of State Lands from the county or counties that originally received the proceeds under this subdivision (a)(3) of the tax-delinquent land sale.
        4. The Commissioner of State Lands shall promulgate rules and forms needed to administer this subdivision (a)(3).
        5. This section does not require the Commissioner of State Lands to search county records to determine whether an owner of tax-delinquent land owes delinquent personal property taxes.
        6. This section does not grant a county a right to a lien against real property for the payment of delinquent personal property tax;
        1. Fourth, to the Department of Finance and Administration an amount equal to the delinquent tax, penalty, and interest owed to the department and for which certificates of indebtedness have been filed against the owner or owners of the tax-delinquent land as certified by the department, which amount shall be held in an escrow fund administered by and remitted to the department within one (1) calendar year after the receipt of the moneys by the Commissioner of State Lands.
        2. If the Commissioner of State Lands is required to make a refund of the taxes withheld under subdivision (a)(4)(A) of this section to a purchaser of tax-delinquent lands for any reason, the amount of the refund shall be recovered by the Commissioner of State Lands from the department from the proceeds originally received under this subdivision (a)(4).
        3. The Commissioner of State Lands shall promulgate rules and forms needed to administer this subdivision (a)(4);
        1. Fifth, to each county an amount equal to the delinquent solid waste assessments, plus penalty and interest, of the owner or owners of the tax-delinquent land as certified by the county collector, which amount shall be held in an escrow fund administered by and remitted to the county after one (1) calendar year of the receipt of the moneys by the Commissioner of State Lands.
        2. The Commissioner of State Lands shall review the information provided by the county collector and any other interested party to ascertain:
          1. Whether the amount of delinquent solid waste assessment and penalty and interest qualifies to be withheld from the tax-delinquent land sale proceeds; and
          2. The amount of delinquent solid waste assessment and penalty and interest that qualifies under this subdivision (a)(5) to be withheld.
        3. If the Commissioner of State Lands is required to make a refund of the delinquent solid waste assessment withheld under subdivision (a)(5)(A) of this section to a purchaser of tax-delinquent lands for any reason, the amount of the refund shall be recovered by the Commissioner of State Lands from the county or counties that originally received the proceeds under this subdivision (a)(5) of the tax-delinquent land sale.
        4. The Commissioner of State Lands shall promulgate rules and forms needed to administer this subdivision (a)(5).
        5. This section does not require the Commissioner of State Lands to search county records to determine whether an owner of tax-delinquent land owes delinquent solid waste assessments.
        6. This section does not grant a county a right to a lien against real property for the payment of delinquent solid waste assessment; and
      2. Sixth, to be placed in another escrow fund administered by the Commissioner of State Lands, the remainder, if any.
    2. If no actions are brought within the time limits prescribed under this subchapter, the remaining funds, if any, shall be distributed by the Commissioner of State Lands as follows:
        1. Ten percent (10%) of the remaining funds up to a maximum amount of five hundred dollars ($500) shall be paid to the Commissioner of State Lands for the administration of the distribution of the funds.
        2. However, the amount paid to the Commissioner of State Lands under this subdivision (b)(1) shall not be a sum less than the amount necessary to pay filing fees required to record any deeds;
        1. After payment is made to the Commissioner of State Lands pursuant to subdivision (b)(1) of this section, the amount left in the remaining funds shall be paid to the former owners of the tax-delinquent land.
          1. “Former owner” means a person, partnership, corporation, or other legal entity capable of owning real property in the State of Arkansas and that holds record title to the real property on the date of sale by the Commissioner of State Lands.
          2. “Former owner” does not include heirs or relations beyond the first degree of consanguinity.
          1. A former owner must file an application with the Commissioner of State Lands requesting the release of the funds.
          2. The application shall be provided by the Commissioner of State Lands and shall require proof of ownership of the tax-delinquent land as well as proof of authority to act on behalf of the owner.
          3. The application may require other information the Commissioner of State Lands deems necessary before the release of the funds.
          1. The former owner shall release and relinquish all rights, title, and interests in and to the tax-delinquent land.
          2. The Commissioner of State Lands shall provide a release deed to the former owner to execute.
        2. In the event of any dispute, claim, multiple claims of ownership, controversy regarding the release of the funds, or claim not expressly permitted under this section, the Commissioner of State Lands may require the party or parties to provide a court order to resolve the issues and to establish the party or parties entitled to the remaining funds.
        3. An agreement by a former owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of remaining funds, is enforceable only if the agreement:
          1. Is in writing;
          2. Clearly sets forth the nature of the property and the services to be rendered;
          3. Provides a fee of not more than ten percent (10%) of the recovery;
          4. Is signed by the former owner; and
          5. States the value of the remaining funds before and after the fee or other compensation has been deducted.
          1. An agreement covered by subdivision (b)(2)(F) of this section that provides for compensation that is unconscionable is unenforceable except by the former owner.
          2. A former owner who has agreed to pay compensation that is unconscionable may maintain an action to reduce the compensation to a conscionable amount.
          3. The court may award reasonable attorney's fees to a former owner that prevails in the action.
        4. Subdivision (b)(2)(G) of this section does not preclude a former owner from asserting that an agreement covered by subdivision (b)(2)(F) of this section is invalid on grounds other than unconscionable compensation.
          1. The Commissioner of State Lands shall make all funds payable to the former owner.
          2. No funds shall be made payable to any other person or entity other than the former owner without a court order directing the payment to the other person or entity.
          3. No interest shall be paid to the former owner on the funds.
          1. Anyone filing a claim or assisting with the filing of a claim that results in the erroneous payment of a claim is responsible for the repayment of all funds paid.
          2. Any claim filed fraudulently is punishable as a Class D felony; and
        1. Any funds placed in escrow prior to July 1, 2005, shall be held in escrow for five (5) years and at the end of the five-year period, if the funds have not been distributed, the escrow funds shall escheat by operation of law to the county in which the property is located.
        2. Any funds placed in escrow on and after July 1, 2005, but before July 1, 2018, shall be held for three (3) years, and at the end of the three-year period, if the funds have not been distributed, the escrow funds shall escheat by operation of law to the county in which the property is located.
        3. Any funds placed in escrow on and after July 1, 2018, shall be held for two (2) years, and at the end of the two-year period, if the funds have not been distributed, the escrow funds shall escheat by operation of law to the county in which the property is located.
    3. All funds distributed to each county by the Commissioner of State Lands from the redemption or sale of tax-delinquent lands, including any interest and costs, are to be distributed to the applicable taxing units where the delinquent land is located within the county in the manner and proportion that the taxes would have been distributed if they had been collected in the year due.
    4. All funds received by a county from the redemption of tax-delinquent land at the county level, including any penalty, interest, and costs, are to be distributed to the applicable taxing units where the delinquent land is located within the county in the manner and proportion that the taxes would have been distributed if they had been collected in the year due.
    5. This section shall be severable, and if any phrase, clause, sentence, or provision of this section is declared to be contrary to the laws of this state, the validity of the remainder of this section shall not be affected.
      1. A purchaser under this chapter of any land or town lot or city lot or another person claiming under the purchaser shall not be entitled to any compensation for any improvement that the purchaser shall make on the land or town lot or city lot within the time frame established in § 26-37-203, except for:
        1. The cost of repairs necessary to prevent deterioration of any improvements on the land or town lot or city lot; or
        2. The cost necessary to comply with any state, county, or city code requirements.
      2. The compensation allowed under subdivision (a)(1) of this section shall be a charge upon the land.
    1. For an improvement made after the expiration of the time frame established in § 26-37-203, the purchaser under this chapter shall be allowed the full cash value of the improvement, and the allowance shall be a charge upon the land.
    1. If a timber right, an oil right, a gas right, or a mineral right is owned or assessed separate from the fee in the land and the taxes due on the right are not paid, the timber right, oil right, gas right, or mineral right is subject to the tax laws governing forfeiture and sale of tax-delinquent land.
    2. Any timber right, oil right, gas right, or mineral right forfeited and certified to the Commissioner of State Lands is subject to disposition as provided in this chapter.
    1. If an owner of land dedicates the land to the city where the land is located for park purposes by a filed and recorded plat and bill of assurance, the city approves the dedication, and there are any delinquent general taxes of the state or a political subdivision of the state against the land, upon a showing that title to the land is dedicated to the city as a public park and the city has approved the dedication, the Commissioner of State Lands and the proper county officials of the county where the land lies shall cancel any delinquent general taxes.
    2. If the city fails or refuses to approve a dedication of land for park purposes within one (1) year of receiving notice of the dedication, the land shall revert to the owner of the land or the owner's heirs, successors, and assigns.
    1. The Commissioner of State Lands shall keep a permanent record of all lands forfeited to the state for taxes and note in the record in whose name the forfeited land was listed, for what year or years it was taxed, the amount of tax due thereon, and when forfeited.
    2. The record shall be open to the inspection of anyone.
      1. Except as provided in § 26-37-204(a) and (b), the Commissioner of State Lands and the county from which tax-delinquent real property is certified shall be immune from liability for damages, costs, fees, or compensation for improvements made to the tax-delinquent real property.
      2. Subdivision (a)(1) of this section applies whether or not the sale is found to be invalid or void as a result of error by the Commissioner of State Lands or the county.
    1. The Commissioner of State Lands is immune from liability for damages, costs, fees, and compensation arising from work undertaken by a town or city to correct, remove, or abate a condition concerning tax-delinquent real property certified to the Commissioner of State Lands that violates local codes or ordinances.
      1. After receiving tax-delinquent land, the Commissioner of State Lands shall notify the owner, at the owner's last known address as certified by the county, by certified mail, of the owner's right to redeem by paying all taxes, penalties, interest, and costs, including the cost of the notice.
      2. All interested parties, as identified by the Commissioner of State Lands, shall be sent notice of the sale from the Commissioner of State Lands by certified mail.
      3. If the notice by certified mail is returned unclaimed or refused, the Commissioner of State Lands shall mail the notice to the owner or interested party by regular mail.
      4. If the notice by certified mail is returned undelivered for any other reason, the Commissioner of State Lands shall send a second notice to the owner or interested party at any additional address reasonably identifiable through the examination of the real property records properly filed and recorded in the office of the county recorder where the tax-delinquent land is located as follows:
        1. The address shown on the deed to the owner;
        2. The address shown on the deed, mortgage, assignment, or other filed and recorded document to the interested party; or
        3. Any other corrected or forwarding address on file with the county collector or county assessor.
    1. The notice to the owner or interested party shall also:
      1. Contain a partial or abbreviated legal description and the parcel number;
      2. State that the tax-delinquent land will be sold if not redeemed prior to the date of sale; and
        1. Provide the sale date.
        2. The sale date shall be no earlier than one (1) year after the tax-delinquent land is certified to the Commissioner of State Lands.
    2. As used in this section, “owner” and “interested party” mean any person, firm, corporation, or partnership holding title to or an interest in the tax-delinquent land by virtue of a bona fide recorded instrument at the time of certification to the Commissioner of State Lands.
    3. The Commissioner of State Lands shall not be required to notify by certified mail or by any other means a person, firm, corporation, or partnership whose title to or interest in the tax-delinquent land is:
      1. Obtained after certification to the Commissioner of State Lands; or
      2. Expired or barred or was released or otherwise terminated before the date of sale regardless of whether a bona fide recorded instrument reflects the termination of the title or interest.
      1. If the Commissioner of State Lands fails to receive proof that the notice sent by certified mail under this section was received by the owner of a homestead that is tax-delinquent land, then the Commissioner of State Lands or his or her designee shall provide actual notice to the owner of a homestead by personal service of process at least sixty (60) days before the date of sale.
      2. As used in this subsection:
        1. “Homestead” means a parcel of tax-delinquent land certified to the Commissioner of State Lands that is identified by the county assessor as a homestead eligible for a homestead credit under § 26-26-1118; and
        2. “Owner of a homestead” means:
          1. Every owner if the homestead is owned by joint tenants; and
          2. Either the husband or the wife if the homestead is owned by tenants by the entirety.
      3. The owner of a homestead that is tax-delinquent land shall pay for the additional cost of the notice by personal service of process under this subsection.
    4. The validity of a notice under this section may be challenged only by an owner or interested party of tax-delinquent land that did not receive notice in substantial compliance with this section.
    1. To redeem tax-delinquent land with the county collector or the Commissioner of State Lands and to purchase tax-delinquent land at the Commissioner of State Lands' sale the redeemer or purchaser of tax-delinquent land shall pay all delinquent taxes, plus:
      1. Ten percent (10%) simple interest for each year of delinquency;
      2. A ten percent (10%) penalty for each year of the delinquency; and
      3. The costs incurred by the county and the Commissioner of State Lands.
    2. The penalties and interest shall accrue beginning on October 16 in the year of delinquency.
    3. Payment to redeem tax-delinquent land under this section shall be made by cash or certified funds, including without limitation a credit card, debit card, electronic check, escrow check, money order, cashier's check, or certified bank check if the redemption occurs:
      1. Within thirty (30) days before the date of the scheduled sale; or
      2. During the redemption period following the sale.
    4. The Commissioner of State Lands may approve additional forms of payment by promulgation of rule.
    1. If the owner redeems the tax-delinquent land, the Commissioner of State Lands shall issue a redemption deed and record it in the county wherein the land is located.
    2. A redemption deed shall:
      1. Serve as proof that payment under § 26-37-302 has been received by the Commissioner of State Lands; and
      2. Not convey or change the legal ownership to the property redeemed.
    3. The fee for the redemption deed and the fee for recording the deed shall be borne by the owner.
    1. All lands forfeited to the state for nonpayment of taxes may, until disposed of by the state, be redeemed under this section.
    2. To request redemption under subsection (a) of this section, a person shall submit the following to the Commissioner of State Lands:
        1. An executed petition with a verified signature to redeem the property in a form prescribed by the Commissioner of State Lands.
        2. The Commissioner of State Lands shall make the petition form available upon request;
      1. Payment in an amount equal to the total of outstanding taxes, penalties, interest, fees, and costs owed at the time the petition is received by the Commissioner of State Lands; and
      2. Any additional documentation requested by the Commissioner of State Lands.
    3. The total amount due under subdivision (b)(2) of this section shall not be raised or lowered for thirty (30) days after the date the redemption under subsection (a) of this section is requested, unless:
      1. The property has been sold;
      2. The records have been amended by a county; or
      3. The actual costs, fees, and taxes are added to the total amount due.
    4. An updated petition to redeem shall be provided to the Commissioner of State Lands, if the date of the submission of the petition to redeem has expired or additional costs, fees, and taxes have accrued.
    5. Petitions and payment in full received by the Commissioner of State Lands at least thirty (30) days before and no later than ten (10) days following the sale date shall be made in cash, certified funds, or as provided in § 26-37-302.
      1. Upon redemption, a redemption deed will be issued by the Commissioner of State Lands.
      2. The deed shall be forwarded to the circuit clerk of the county in which the land or lot conveyed by the deed is situated, to be filed of record.
        1. The Commissioner of State Lands may establish by rule a fee for producing a redemption deed.
          1. A fee under this subsection shall not be established in an amount that exceeds the costs expended by the Commissioner of State Lands in producing or filing the redemption deed or performing the services required to carry out the established duties of the office of the Commissioner of State Lands.
          2. As used in subdivision (f)(3)(B)(i) of this section, “costs” means the actual costs expended by the Commissioner of State Lands plus three percent (3%) of the actual costs expended by the Commissioner of State Lands.
    6. The redemption deed shall serve as proof that payment has been received by the Commissioner of State Lands, in accordance with the provisions of § 26-37-302, and does not convey or change the legal ownership to the property redeemed.
    7. Upon receipt of the redemption deed, the county collector shall extend on the tax book against the land or lot the taxes other than state and county for the years that the taxes have not been paid since the sale of the land or lot to the state, and these taxes shall be charged and collected as other taxes.
    8. The proceeds of all redemptions of forfeited lands shall be divided between the county where the lands are situated and the state, as set forth in § 26-37-205, and paid over in the manner as required and provided in this section.
      1. Town and city lots and blocks and acreage tracts, lots, blocks, divisions, and subdivisions that have been platted and sold as being outside of the corporate limits of towns and cities, and rural lots and parcels of land now, or which may hereafter be, forfeited to the state for nonpayment of taxes due thereon that have depreciated in value since forfeiture may be reassessed at their present value by the county assessor of the county in which the lands are located, upon application being made in writing by the application to redeem or purchase them, setting forth the reasons for the reassessment. No application shall contain more than five (5) descriptive calls. Before any such reassessment shall be valid, it shall be presented to the county judge and the chief county school officer of the county in which the lands are located and approved by them in writing and made a matter of record in the county by the county clerk.
      2. The fee of the county assessor shall be one dollar ($1.00) for each application. The fee shall be paid to the county treasurer and credited by him or her to the county general revenue fund. The fee of the county clerk shall be the regular fee allowed by law and shall be paid by the applicant seeking reassessment.
      1. If the county assessor deems the assessment for which parcels of land were forfeited to be too high, he or she shall prepare a certificate stating that a reassessment has been made under this section and shall state, under oath, the cause for the depreciation in the value of the lots or parcels of land.
      2. The county assessor, the county judge, and the chief county school officer are prohibited from making any such reassessment as set out in this section except for the following causes:
        1. Burned buildings not replaced and on which the applicant did not collect insurance;
        2. Buildings removed and from which the applicant received no benefit;
        3. Erosion;
        4. Damage by flood;
        5. Damage by tornado;
        6. Removal of timber from which the applicant received no benefit; or
        7. Any act of God.
      3. When the reassessment has been made, a complete record thereof, including a certified copy of the application, the reassessment, and the court order, shall be forwarded to the Commissioner of State Lands, who shall, upon its receipt, enter it upon a record to be kept by him or her in his or her office for that purpose, and he or she shall issue redemption deeds or sale deeds for forfeited lands in the manner and form provided by law, based upon the reassessment value.
      1. When severed mineral interests are forfeited to the state and conveyed by certification to the Commissioner of State Lands for nonpayment of property taxes, title to the severed mineral interests shall vest in the State of Arkansas in the care of the Commissioner of State Lands.
      2. The Commissioner of State Lands shall so notify the owner of record by certified mail at his or her last known address.
        1. Except as provided in subsection (b) of this section, the Commissioner of State Lands shall not sell the severed mineral interests but shall retain the severed mineral interests indefinitely for redemption.
        2. However, the severed mineral interests may be leased by the Commissioner of State Lands if he or she determines that a lease is in the best interest of the state.
        3. All benefits, including royalty and leasehold payments, accruing after title vests in the state and before redemption shall be payable to the Commissioner of State Lands.
        4. Upon receipt of any such benefits, the Commissioner of State Lands shall deposit the funds into financial institutions in this state.
        1. The tax-delinquent severed mineral interests may be redeemed at any time in the manner prescribed for the redemption of tax-delinquent real property.
        2. However, upon redemption the owner shall not be entitled to any payments received by the Commissioner of State Lands before redemption.
      3. All funds derived from redemption shall be held in escrow by the Commissioner of State Lands for one (1) year, at which time they shall be distributed the same as funds derived from the redemption of real property.
      1. After the expiration of the redemption period prescribed by this chapter, the Commissioner of State Lands shall sell the severed mineral interests to the surface owners if the surface owners opt to purchase the tax-delinquent severed mineral interests.
      2. The surface owner purchasing severed mineral interests under subdivision (b)(1) of this section shall be allowed to purchase the severed mineral interests for an amount equal to the delinquent taxes and shall not be required to pay any interest or penalties if the surface owner was not the owner of the severed mineral interests at the time the taxes became delinquent.
    1. All benefits, including royalty and leasehold payments, payable to the Commissioner of State Lands pursuant to this section are not subject to the provisions of § 18-28-201 et seq. and § 18-28-401 et seq.
    2. The provisions of this section shall be applicable to all tax-delinquent severed mineral interests currently forfeited to the state and certified to the Commissioner of State Lands as well as to all tax-delinquent severed mineral interests forfeited to the state in the future.
      1. No deed issued under this section shall be void or voidable on the ground that the assessment of the property taxes on the severed mineral interests was not subjoined to the assessment of the property taxes on the surface realty.
      2. This subsection shall be retroactive to all certifications of delinquent severed mineral interests in the records of the office of the Commissioner of State Lands.
    1. As used in this section, “homestead” means a parcel of tax-delinquent land certified to the Commissioner of State Lands that is identified by the county assessor as a homestead eligible for a homestead credit under § 26-26-1118.
    2. If an owner of a homestead did not receive actual notice of the sale of his or her homestead by the Commissioner of State Lands or his or her designee by personal service of process at least sixty (60) days before the date of the sale, then the owner of a homestead may redeem the tax-delinquent land by tendering all taxes, penalties, interests, and costs within ten (10) days, excluding Saturdays, Sundays, and legal holidays, after the date of the sale.
    1. As used in this section, “homestead” means a parcel of tax-delinquent land certified to the Commissioner of State Lands that is identified by the county assessor as a homestead eligible for a homestead credit under § 26-26-1118.
    2. When a homestead is certified to the Commissioner of State Lands, the county collector shall provide notice to the Commissioner of State Lands that the tax-delinquent land is a homestead.
    1. All sales of lands to the state for nonpayment of taxes for the year 1970 and all years prior thereto, which have not been certified to the Commissioner of State Lands and respecting which sales there is no record in the office of the Commissioner of State Lands, are canceled. The state releases all of its right, title, or interest in and to:
      1. All lands sold to the state for nonpayment of taxes for the year 1970 and all years prior thereto, to which lands the Commissioner of State Lands has executed deeds in favor of the grantees in such deeds, their heirs, successors, and assigns; and
      2. All such lands as have not been disposed of by the Commissioner of State Lands as aforesaid, but which lands have been placed back on the tax books of the counties wherein the lands lie, and the taxes have been paid thereon for more than seven (7) years since they were sold to the state.
    2. The provisions of this section apply whether or not the lands were ever certified to the county clerk and whether or not the lands were certified by the county clerk to the Commissioner of State Lands.
    1. As to all lands in the State of Arkansas which were sold to the state under the provisions of an act to enforce the payment of overdue taxes, Acts 1881, No. 39, approved March 12, 1881 [repealed], and an act amendatory thereto, approved March 22, 1881, to which the Commissioner of State Lands has executed deeds of donation, deeds of sale, or deeds of relinquishment, the state does release its title in favor of the grantees in these deeds, their heirs, successors, and assigns forever. As to all these lands that have not been disposed of by the Commissioner of State Lands as indicated but which have been placed back upon the tax books of the counties wherein the lands lie, and the taxes have been paid thereon for more than seven (7) years since they were sold to the state under the provisions of these acts, the state does release all of its title. These provisions apply whether the lands were certified by the commissioner of the court to the county clerk of the county, as required by these acts, or not, and also to apply whether the lands were certified by the county clerk to the Office of the Commissioner of State Lands, or not.
    2. Any person, firm, or corporation owning or claiming any of these lands may obtain evidence of his or her title thereto having been quieted under the provisions of this section by presenting to the Commissioner of State Lands a certificate under the hand and seal of the county clerk of the county wherein the lands lie, showing that he or she or his or her grantors, direct or by mesne conveyances, have paid the taxes on the lands for the number of years stated since sold to the State of Arkansas under the provisions of these acts of the General Assembly, accompanied by the affidavit of the claimant or his or her agent, showing that he or she is the present owner or claimant and has not sold or conveyed the lands to any other person, firm, or corporation. The certificate and affidavit being filed in the office of the Commissioner of State Lands, the Commissioner of State Lands shall execute a deed of relinquishment of all of the right, title, and interest of the state acquired under these acts to the claimant, or his or her successors and assigns, forever, upon the payment of a deed fee of one dollar ($1.00).
      1. The county clerks are authorized and empowered to execute duplicate tax deeds to land sold for delinquent taxes, to or in the name of the original grantee in any tax deed which has been lost, mislaid, or destroyed, upon the fact being shown to the county clerk.
        1. If fully satisfied from the evidence of the existence and loss of the original deed, the county clerk shall, on written application for that purpose, proceed to make, execute, and deliver, to or in the name of the original grantee, a good and sufficient deed of conveyance for any such tract of land or lot.
        2. The deed shall be good and valid in law to all intents and purposes as if the original had not been mislaid, lost, or destroyed.
    1. The county clerks shall receive the sum of one dollar ($1.00) as their fee for the execution of each duplicate deed, as provided in this section, from the person applying therefor.
    1. Upon the presentation of any void tax deed, showing upon its face that two (2) or more tracts of land were sold together when in fact the tracts were sold separately, to the county clerk of the county in which the lands were sold for taxes and the county clerk being satisfied from the records of his or her office that the several tracts of land contained in the deed were sold separately, the county clerk shall file the void deed in his or her office and cancel it. The county clerk shall thereupon execute in lieu thereof a deed for the tracts of land, reciting the execution of the former deed, and the date thereof, the error therein, that each tract was sold separately, and the amount for which the land was sold, and, in all other respects, conform to the requirement of law.
    2. The deed when executed, as provided in subsection (a) of this section, shall relate back to the void deed and have the same force and effect, both in law and equity, as if executed on the same day.
    1. Under and by virtue of a deed executed substantially by the county clerk, the party claiming title adverse to that conveyed by the deed shall be required to prove, in order to defeat the title, either that the real property was not subject to taxation for the years named in the deed, or that the taxes had been paid before the sale, that the property had been redeemed from the sale, according to the provisions of this act, and that such redemption was had or made for the use and benefit of persons having the right of redemption under the laws of this state; or that there had been an entire omission to list or assess the property, to levy taxes, to give notice of the sale, or to sell the property.
    2. No person shall be permitted to question the title acquired by a deed of the county clerk without first showing that he or she, or the person under whom he or she claims title to the property, had title thereto, at the time of the sale, or that title was obtained from the United States, or this state, after the sale, and that all taxes due upon the property have been paid by such person, or the person under whom he or she claims title as aforesaid.
    3. In any case where a person had paid his or her taxes, and through mistake, or otherwise, by the county collector, the land upon which the taxes were paid was afterward sold, the deed of the county clerk shall not convey the title.
    4. In all cases where the owner of lands sold for taxes shall resist the validity of a tax title, the owner may prove fraud committed by the officer selling the land or in the purchaser to defeat the sale, and if fraud is so established, the sale and title shall be void.
    1. If real property has been f