Personal Property - Under Arkansas law, A.C.A. § 26-1-101, personal property is defined as “Every tangible thing being the subject of ownership, and not forming a part of any parcel of real property as defined.”
Market Value - A.C.A. § 26-26-1202 states that personal property of any description shall be valued at the usual selling price of similar property at the time of listing (Market Value).
Market Value is internationally recognized and defined as: the most probably price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
- The Buyer and Seller are typically motivated
- Both parties are well informed or well advised, and acting in what they consider their best interests
- A reasonable time is allowed for exposure in the open market
- Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto
- The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale
Personal Property is assessed annually and it’s value determined as of January 1 of each assessment year.
Personal Property should be itemized and reported to the assessor by May 31 to avoid a late assessment penalty of 10%.
Check with your local assessor to see if online assessment is available in your county.
Automobiles and other vehicles which must be licensed in Arkansas include automobiles, pickups, vans and other passenger vehicles; trucks and other non-passenger vehicles; boats and watercraft, motors, and trailers; motor homes, travel trailers, and other recreational vehicles; motorcycles, atvs, and similar vehicles; and aircraft. Those owned by private citizens are Individual Personal Property, those in income producing uses are Commercial Personal Property.
Farm equipment includes not only tractors but also the wide variety of implements and equipment used in farm production. Mobile irrigation equipment should also be assessed as personal property. This type of personal property can be considered Individual Personal Property or Commercial Personal Property depending on use.
Heavy equipment is considered Commercial Personal Property and includes the various types of vehicles and equipment used in construction, logging, and other similar commercial pursuits.
Livestock includes adult breeding stock such as horses, cattle, swine, poultry, and a variety of other breeds of animals. The offspring of "graze" types of stock, swine and poultry should also be assessed as personal property. This type of personal property can be considered Individual Personal Property or Commercial Personal Property depending on use.
While household property is exempted from assessment, the statute clearly states that it cannot be used for income producing purposes. Any property used for the production of income should be assessed as commercial personal property using the appropriate form. This would include home offices, a home-based bakery operation, interior decorators, photographers, service businesses, etc.
Household goods are exempted so long as it is "property used in or about the household" and not used for income producing purposes.