Personal Property Tax.. explanation please

[bkern1989]

This was in fact the bill that I go in the mail. It really isn't much at all. In fact, the personal property tax plus the amount to renew my car registration was still cheaper than what it was costing me to renew my registration in Kansas.

[gunslinger256]

Originally Posted by daterxies

I read up on this and to me its confusing to me.

So say if a buy a truck, i have to take that truck to an assessor to assess it and tell me how much its worth? So if its 45,000 dollars its 20% of that, so taxes would be 11,250 ? The Arkansas website says Personal property tax is 20% of value?
.

I think that 20% is used to derive the assessed value, so for property tax purposes they will tax your car at [some rate] * 11,250.

My cars and motorcycles have been assessed but I don't think we've paid the tax on them yet.

[strasse]

I don't live there, but read about yesterday on AccessFayetteville.org | The City of Fayetteville, Arkansas *|*Frequently Asked Questions

9 How much does the average citizen pay based on the above tax rate?
Washington County has set the assessed value of a residential property at 20% of its fair market value. The City’s tax levy is taken times this assessed valuation. For example: An individual who owns a home with an actual value of $160,000 would pay the following to the City:

$160,000 x 20% = $32,000 assessed valuation

$32,000 divided by $100 = $320 x $0.13 = $41.60

20% is not the tax rate, but the assessed value.

[Douglas 1945]

I will use my taxes as an example.

My 2014 assessment on vehicles ( remember the value given is 20% of actual value)

2011 truck..............$2845
2007 car................$1610

( I think my car was assessed too high and truck too low )


Actual taxes...........2013 ( due and paid in 2014) was personal property on 2 vehicles=$205.07
Thus , to compare it against a state that has no personal property tax, I pay yearly $235.07 on my 2 vehicles ( $3 license on one with veteran discount and $27 on the other)

I usually impress visitors from my former home state by explaining it this way........my entire bill for tax on my house, tax on my 2 vehicles, and license tabs is.......$$637.26

That usually impresses visitors from my home state because same vehicles and house there would total around $2,000 for sure.

Thus comparing apples to apples..........$637.60 total in Arkansas
.................................................. ......$2,000+in MN

[Regajohn]

The 20% of value is then multiplied by your local millage rate for personal property taxes ... Somewhere less than 3%. So if you have $100,000 car you're going to pay 1.25% to 3% on $20,000, so $300 to $600 per year.

I paid $350 for three cars ... I always argue that they appraise them too high ... They will usually knock them down several thousand $$$

Pretty much the taxe is on anything you register or that moves; motor homes, boats, cars.

I know in some areas (other states) they are contemplating / trying to figure out how to charge for everything inside your house. Typical government money grab

[370z]

I know in TN there is no personal property tax on vehicles, it's apprx. $35-maybe $65 vehicle registration, but their sales tax is high. Is the sales tax high in AR?

[Regajohn]

There's a state sales tax, a county sales tax, and city sales tax ... Google and you'll get answers.

Tennessee has no income tax (which Arkansas does) so your sales tax is higher ... they have to get money out of you somehow.

Arkansas State taxes 6.5 but the counties and cities add more North Little Rock is 8.5 % Little Rock is 9 % (as of December 2013)

Also there are extra taxes on takeout restaurant food and dine-in restaurant food.

[370z]

Originally Posted by Regajohn

There's a state sales tax, a county sales tax, and city sales tax ... Google and you'll get answers.

Tennessee has no income tax (which Arkansas does) so your sales tax is higher ... they have to get money out of you somehow.

Arkansas State taxes 6.5 but the counties and cities add more North Little Rock is 8.5 % Little Rock is 9 % (as of December 2013)

Also there are extra taxes on takeout restaurant food and dine-in restaurant food.

I might be wrong but it seems like taxes are high there. 6.5% AR, Benton County 1% and Bentonville 2%=9.5%. And food is also taxed, correct?

[Regajohn]

Arkansas (AR) Sales Tax Rates by City

It's all relative ... Real property taxes (house, etc.) is pretty low compared to other states. An owner of a $500,000 house in Little Rock pays about $6,000 in property tax ... A similarly priced house in Shaker Heights Ohio pays $16,000+ per yr.

[370z]

Originally Posted by Douglas 1945

I will use my taxes as an example.

My 2014 assessment on vehicles ( remember the value given is 20% of actual value)

2011 truck..............$2845
2007 car................$1610

( I think my car was assessed too high and truck too low )


Actual taxes...........2013 ( due and paid in 2014) was personal property on 2 vehicles=$205.07
Thus , to compare it against a state that has no personal property tax, I pay yearly $235.07 on my 2 vehicles ( $3 license on one with veteran discount and $27 on the other)

I usually impress visitors from my former home state by explaining it this way........my entire bill for tax on my house, tax on my 2 vehicles, and license tabs is.......$$637.26

That usually impresses visitors from my home state because same vehicles and house there would total around $2,000 for sure.

Thus comparing apples to apples..........$637.60 total in Arkansas
.................................................. ......$2,000+in MN

WOW! You must have really low property taxes on home!