Patricia owns a 100-acre farm in rural Benton County, Arkansas, where she has lived for 20 years. A bank obtains a judgment against Patricia for an unpaid business loan and attempts to force the sale of the entire 100-acre property to satisfy the debt. Patricia claims the Arkansas homestead exemption. Which of the following best describes the legal outcome?
Correct Answer
A) Up to 80 acres of the farm may be protected as Patricia's homestead, but the remaining 20 acres may be subject to the judgment.
The Arkansas Constitution, Art. 9, §§ 3–6, protects a rural homestead up to 80 acres. Patricia's 100-acre farm exceeds this limit by 20 acres. Therefore, Patricia may designate up to 80 acres as her protected homestead, shielding that portion from the judgment creditor. The remaining 20 acres that fall outside the homestead designation may be subject to forced sale to satisfy the judgment. The value of the protected 80 acres is not capped.
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Which government official in Arkansas is primarily responsible for determining the appraised (true market) value of real property for property tax assessment purposes?
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An Arkansas real estate agent tells her client that the property tax on a $400,000 home will be calculated by multiplying the full $400,000 market value by the local millage rate. A competing agent tells the same client that Arkansas first converts market value to an assessed value before applying the millage rate, resulting in a much lower tax base. The client asks which agent is correct and what the assessed value would be. Which of the following responses is accurate?