DFA Assessment Coordination Division Proposes Property Tax Exemption Rules Requiring Every Exempt Parcel to Reapply

The Assessment Coordination Division (ACD) of the Arkansas Department of Finance and Administration has proposed rules on tax exemption determinations as mandated by Act 819 of 2019. The rules would require every exempt parcel to reapply for exemption in 2023, and the draft exemption application would require a large amount of information to prove entitlement to the exemption. The rules do not provide substantive guidance about what kinds of uses of property should or should not qualify for exemption. The deadline for comments on the proposed rule is May 31, and a hearing on the proposed rules will be held June 1. Interested parties should consider participating in the rulemaking process. [More]

Arkansas Supreme Court Allows Exemption for Unleased Economic Development Property Under Facts Presented

The Arkansas Supreme Court issued a nuanced opinion in City of Little Rock v. Ward, 2020 Ark. 399 (2020), granting property tax exemptions for publicly held property that formerly had been leased to private parties. The reasoning of the opinion turns on the specific facts associated with the subsequent use of each parcel. As such, the case is a win for economic development authorities, but it is a nuanced one where such agencies need to carefully consider the applicable facts. [More]