--> -->

	Welcome
	Calendar of Events
	Chamber of Commerce
	Education
	Career Center
	Government
	Health Care
	Businesses Online
	Business & Industry
	Recreation
	Relocation
	Retirement
	Site Index/Search
	Contact Us
	Home

Money Matters

According to Retirement Places Rated "The best economic reason you will ever need for leaving your hometown is the chance for enjoying a dramatically lower cost of living someplace else during the final quarter of your life. If you choose the right place it can make the difference between thriving comfortably or existing precariously."

We know that retirees will consider taxes, the cost of food, housing and health care when choosing a retirement destination.

Taxes

Personal Property must be assessed between January 1st and April 10th at the White County Assessor's office located in the White County Courthouse on the court square. Sales tax in Arkansas is 6.0% White County has an additional 1.5% tax and Searcy has a .5% tax, for a total of 8.0%. More detailed information regarding taxes is available in the business section of our web pages or call 279-6205.

PROPERTY TAX-what is it and why do I have to pay it? The following information is provided to answer some of those questions we have all asked about property taxes.

WHY?

Property tax is an important source of revenue for local governments, including school districts and county and city governments. Revenue generated by property tax is used to finance education, roads, hospitals, libraries, public safety and for the general operation of county and city governments.

IS THERE MORE THAN ONE KIND? Property taxes are based on two kinds of property: "real property" and "personal property."

REAL PROPERTY TAX What is "real property" tax? Real property is all tangible real estate that is fixed, immovable property. This includes land and all improvements made to that land, such as buildings, homes, barns.

PERSONAL PROPERTY TAX Personal property is everything that is Subject to ownership, tangible and movable, such as cars, boats, livestock, motorcycles, and RV's. Items of household furnishings, clothing, appliances were exempted from personal property tax by Amendment 71 and these items will not be addressed in this article.

ASSESSMENTS & MILLAGE Property taxes are based on the "millage rate" applied to the assessed value of all real and personal property owned by the taxpayer. The amount of your property tax bill is determined by two local factors:

1) Local property values determine the assessed value of your property;

2) Local millage rates determine the amount you pay per $1,000 of assessed value

Individual property tax bills are calculated by multiplying the assessed value of property by the total millage rate for that location.

ASSESSMENTS

Each White County taxpayer must declare (assess) both real and personal property each year by May 31. The County Assessor estimates the value of all property in the county. Assessment or the assessed value of real property is calculated as 20% of the true market value.

MILLAGE RATE

Cities, counties and school districts levy taxes on both real and personal property. Property taxes are based on "mills." All millage levies, except for city and county general funds and county road funds, must be approved by local voters before they can be levied or collected. The county, quorum court may approve millage levies for county general and road funds up to the maximum allowed. City governments may approve millage levies for the city general fund up to the maximum allowed.

A "mill" equals one-thousandth of a dollar (.001). Therefore, 10 mills = .01 and 50 mills = .05. A 50-mill property tax means you pay $50 for every $1,000 of assessed value.

There is a maximum constitutional limit on the number of mills that can be levied by cities and counties. School districts do not have a maximum limit on the number of mills they can levy. However, school districts must levy a 25-mill tax on real and property (Amendment 74). Remember that all millage levies, except those previously noted as exempted, must first be approved by a vote of the people.

COUNTIES: can levy up to 21 mills of property tax

• 5 mills General Government
• 5 mills Bonded Indebtedness
• 5 mills Library (Maintenance & Operation)
• 3 mills Library (Capital Improvements & Construction)
• 3 mills Road

CITIES: can levy up to 20 mills of property tax

• 5 mills General Government
• 5 mills Bonded Indebtedness
• 5 mills Library (Maintenance & Operation)
• 3 mills Library (Capital Improvements & Construction)
• 1 mill Police Pension
• 1 mill Firemen's Pension

SCHOOL DISTRICTS: must levy a 25-mill property tax and there is no maximum levy. However, all school district millages must be approved by voters.

Searcy Business Directory