James owns a farm in rural Izard County, Arkansas, where he lives with his family. He wants to know the maximum acreage that can be protected under the Arkansas homestead exemption for his rural property. Which of the following correctly states the rural homestead acreage limit?
Correct Answer
D) 80 acres, as established by the Arkansas Constitution
The Arkansas Constitution, Art. 9, §§ 3–6, establishes a homestead exemption with two distinct acreage limits based on location: one-quarter acre for urban/city properties and 80 acres for rural properties. James's farm in rural Izard County is therefore eligible for protection of up to 80 acres as his homestead.
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Previous Question
Sandra owns a home in Little Rock, Arkansas that sits on a lot measuring exactly one-quarter acre. She has claimed the Arkansas homestead exemption on the property. A creditor has obtained a judgment against Sandra and seeks to force a sale of her home to satisfy the debt. Which of the following statements most accurately describes the effect of the homestead exemption in this situation?
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A licensed Arkansas real estate agent is helping a buyer named Marcus compare two properties. Property A has a true market value of $300,000, and Property B has a true market value of $150,000. Marcus asks the agent how Arkansas determines the taxable value used to calculate property taxes. Which explanation is correct?