In Arkansas, what is the primary factor that determines property tax rates?

The assessed value of the property is the primary factor that determines property tax rates in Arkansas. This value is calculated based on the market value of the property and is used as a basis for tax assessments. Local governments use the assessed value to determine how much property tax an owner owes, with the tax rates typically set by local entities like cities and counties.

While factors such as market demand, location, and age of the property may influence its market value, it is ultimately the assessed value that directly correlates with property tax calculations. Localities may apply specific assessment ratios and exemptions, but these computations all hinge on the initial assessed value of the property in question. Understanding this principle is crucial for anyone involved in real estate or property management in Arkansas, as it directly impacts the financial obligations of property ownership.