Thursday, July 26, 2012

Pulaski tax bills rising - but it could be worse

Posted By on Thu, Jul 26, 2012 at 5:35 AM

click to enlarge 1343265281-ttaxtable.jpg

Pulaski County has been mailing notices of the reappraisal of real property in the county and the news hasn't been good in some neighborhoods.

More property owners, about 100,000, saw increases in value, which mean increases in taxes. About 80,000 saw decreases. I mentioned previously that my own house jumped 25 percent in value, thanks apparently to some "good" (depending on your point of view) valuations on comparable nearby property sales. But I, like everyone else, have protection from the state circuitbreaker law that limits the increase of my assessment for tax purposes at 5 percent more than the previous valuation. Over the 21 years I've lived in the house, the circuitbreaker has kicked in repeatedly and left me at an effective tax on the property well below what it would be if the house were to sell at the appraised value. Further good news: the value freezes forever next year when my wife turns 65.

Maumelle, Heights, Hillcrest and some higher income neighborhoods in North Little Rock showed valuation increases. But many neighborhoods showed drops and the drops were not limited, in determining taxes, to 5 percent, as increases are

Back to the bigger picture:

The county's assessor's office has prepared a chart for me that illustrates the rise in valuation — and the change in tax revenue it will produce at the existing millage rate — on each of the 16 taxing jurisdictions in Pulaski County. Incorporated areas and school districts determine the taxing districts. Here's that full spread sheet by district. Unfortunately, you'll need this document to identify the 16 by more than the number. It shows the taxing district and prevailing millage rate in each.

The first sheet on the big spreadsheet shows the number of pieces of property in each taxing district, the total valuation and the effective valuation with the cap on valuation imposed by circuit breaker both last year and this year. Overall in the county, property values rose from $5.3 billion to $6.1 billion, but the value for taxes rose by a much smaller amount, from $4.79 to $4.84 billion.
.
The second sheet on that spread sheet might be more useful. It analyzes the impact on tax revenues in the named cities and county. It shows both the full value and the capped value of all property, plus the amount the cumulative tax bills will produce in taxes under the cap and — just for fun — without the cap.

For example: All the various Little Rock millages — for general purposes, capital improvements, police and fire pensions and the library — were applied to $2.76 billion in property value in 2011, with tax bills totaling $47.1 million. Under the new values in 2012, bills totaling $47.9 million, or $857,000 more than last year, will go out on $2.81 billion in property in the city of Little Rock. If the property were all to be taxed at market value and not subject to the circuitbreaker, it would be worth more than $3.5 billion and produce $59.9 million in taxes. So there's your bright spot. Sort of.

Note that the small cities of Alexander and Wrightsville will experience small drops in property tax billings because of declines in property value. You can see the chart on the jump.

PS — The sticker shock for some on higher values will be felt most in neighborhoods that have traditionally carried the day for local tax increases. See: Heights and Hillcrest and the last city sales tax vote. This has some implication for the coming city property tax vote, even more than in a sales tax election.

ttaxtable.JPG

Key: The chart shows figures for property values and total bills from cumulative millages in the cities and county for 2011 and 2012.

"Full" refers to the market valuation of property.

"Caps" refers to the valuation of property after the state 5 percent cap is applied on any increases in value.

The chart computes the total tax bills, at existing millage rates, in both 2011 and 2012 in every jurisdiction based on the market value and the value with caps. Bills are only prepared on the values as capped. The figures do not include millages approved this year (such as the North Little Rock school millage) or on the ballot this year (such as a millage rededication coming to a vote in September in Little Rock). They can't be collected until next year. Tax bills for this year have already been prepared.

Tags: , , , , ,

Favorite

Speaking of...

Comments (2)

Showing 1-2 of 2

Add a comment

 
Subscribe to this thread:
Showing 1-2 of 2

Add a comment

More by Max Brantley

  • Arkansas Supreme Court denies rehearing in death penalty challenge, but delays mandate

    The Arkansas Supreme Court today refused to rehear the case denying Death Row inmates information about drugs used by the state in the lethal injection process.
    • Jul 21, 2016
  • Welspun layoffs: Another example of corporate welfare folly

    Layoffs at the Welspun pipe plant in Little Rock are a reminder of the folly of corporate welfare and the inability of Arkansas to separate itself from global economic forces. See the Fayetteville shale. And keep a watchful eye on that Sun Paper pulp mill proposed near Arkadelphia.
    • Jul 21, 2016
  • Hamburg bank manager gets 21 months for theft

    Melinda Gwin, 49, of Hamburg has been sentenced to 21 months in federal prison and ordered to repay $210,875 stolen from the First National Bank of Crossett. She was sentenced in El Dorado federal court, according to a Justice Department news release.
    • Jul 21, 2016
  • More »

Readers also liked…

  • Rep. Nate Bell blasts adoption story before seeing it; 'rehoming' bill introduced

    Response to our story about rehoming and adoption has been overwhelmingly positive, with one exception. Rep. Nate Bell (R-Mena) has informed me that writing this story makes me the predator and Justin Harris the victim. I'm hellbound, apparently.
    • Mar 4, 2015
  • Hall of Fame vote today for former Arkansas Traveler Dick Allen

    A vote will be announced today on whether Dick Allen will become a member of the baseball Hall of Fame for a career that included a tumultuous beginning as an Arkansas Traveler.
    • Dec 8, 2014
  • Homicide victim identified as TC Edwards, local musician

    Little Rock police are still withholding identification of a man found shot to death early Sunday on Howard Street, but multiple reports on social media are tying the death to that of a well-known figure on the local music scene, TC Edwards. The suspect in a criminal case brought over crimes against Edwards will likely be reviewed for potential involvement in his death.
    • Dec 8, 2014

Most Shared

  • Best of Arkansas 2016

    Readers elect their favorites.
  • These Hogs won't be thin

    This may be the strongest returning receiving corps that the Razorbacks have fielded in the post-Petrino days.
  • Trump-Putin 2016

    Among the thousand bizarre aspects of the presidential campaign has been the Donald Trump-Vladimir Putin axis.
  • Hillary hit jobs

    It's always been my conviction that if Hillary Clinton could be appointed president, she'd do a bang-up job. Getting elected, however, might prove more difficult.

Most Recent Comments

Blogroll

 

© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation