A residential property in Springdale, Arkansas has a true market value of $350,000. Arkansas assesses property at 20% of true market value. The county assessor has determined the assessed value. What is the assessed value of this property for tax purposes?
Correct Answer
A) $70,000
Step 1 — Apply Arkansas's 20% assessment ratio: $350,000 × 20% = $350,000 × 0.20 = $70,000. The assessed value of the property is $70,000. Under Ark. Code Ann. § 26-26-101 et seq., Arkansas assesses real property at 20% of its true market value. The millage rate would then be applied to this $70,000 assessed value (not the full market value) to calculate the actual tax bill.
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