Fill and Sign the Disenrollment Form Health First Insurance

ASSESSMENT COORDINATION DEPARTMENT STATE OF ARKANSAS RULES AND REGULATIONS Effective December 20, 2000 TABLE OF CONTENTS Chapter 1: General Provisions 1.01 1.02 1.03 1.04 1.05 Chapter 2: Chapter 3: 12/20/00 1 Statutory Authority Creating Assessment Coordination Department General Scope of Authority Description of Organization Public Inspection The Arkansas Freedom of Information Act of 1967 1 1 1 2 2 General Rules of Practice and Procedure 3 2.01 2.02 Petitions for Declaratory Orders Public Right to Petition 3 3 Implementation of Act 1185 of 1999 4 3.01 Appraisal Manager Examination 3.02 Prerequisites for Appraisal Manager Exam 3.03 Date of Appraisal Manager Exam 3.04 Administration of Appraisal Manager Exam 3.05 Submission of Reappraisal Plans 3.06 Due Date for Reappraisal Plans 3.07 Reappraisal Plans for 2, 3, 4, or 5 Years 3.08 Exceptions to Rule 3.7 3.09 Format for Reappraisal Plans 3.10 Parcel Count Information 3.11 Order of Reappraisal Progress 3.12 Reappraisal Manager to be Named in Reappraisal Plan 3.13 Existing Resources 3.14 Reappraisal Budgets 3.15 Minimum Expected Production Levels for In-house Reappraisals 3.15.1 Full Reappraisal Program Using Single Appraisers 3.15.2 Full Reappraisal Program Using Data Gatherers and Review Appraisers 3.15.3 Review Appraisal Program Using Single Appraisers 3.15.4 Review Appraisal Program Using Data Gatherers and Review Appraisers 3.16 Allowable Expenses 3.17 Funding 3.18 In-house Reappraisal Plans - Signature Requirements 3.19 Contracted Reappraisal Plans - Signature Requirements 3.20 Progress Reports from Appraisal Manager to ACD 3.21 Reimbursement to Counties in Equal Payments 3.22 Direct Deposits 3.23 Revenue Shortfalls 3.24 ACD to Conduct Performance Audits 4 4 4 4 5 5 5 6 6 6 7 7 7 7 8 8 i 8 8 9 9 9 9 9 10 10 10 10 10 Chapter 4: 3.25 Scope of Phase One Performance Audits 3.26 Design of Property Record Cards 3.27 Scope of Phase Two Performance Audits 3.28.1 Neighborhood Delineation for Residential Neighborhoods 3.28.2 Neighborhood Delineation for Commercial Neighborhoods 3.28.3 Neighborhood Delineation for Rural Areas 3.29 Reserved for Future Use 3.30 Minimum Acceptable Standards for Performance Audits 3.31 Failure to Comply with Standards of Performance Audit 3.32 False Reports of Progress 3.33 Force Majeure 3.34 CAMA Systems Required 3.35 Computer Data Property of County 3.36 Required Reports 3.37 Downloading CAMA Data 3.38 Bid Specs for Contracted Reappraisals 3.39 Bids Required for Contracted Reappraisals 3.40 Payment in Kind Services 3.41 Reappraisal Plans Required 3.42 Reappraisal Budgets Required 3.43 Reappraisal Contracts Required 3.44 Rejection of Reappraisal Plans 3.45 Conflicts with Acts 440 and 836 of 1997 3.46 Special Needs 3.47 Minimum Qualifications for Appraisal Tasks 3.47.1 Minimum Qualifications for Appraisal Manager 3.47.2 Minimum Qualifications for Other Appraisal Tasks 3.48 Maximum Annual Funding for Reappraisals/Reviews 3.49 Maximum Funding for Appraisals of New Construction 3.50 Assessors Duties Other than Reappraisal Costs not Eligible for Funding 3.51 Definitions Relating to Chapter 3 Rules 3.52 Waiver 11 11 12 13 13 13 14 14 15 15 15 15 15 16 16 16 16 17 17 17 17 17 18 18 18 18 19 19 19 Implementation of Specific Statutes 21 4.01 4.02 21 Procedures Generally - Extension of Levy Date General Authority to Promulgate Rules and Regulations & Prescribe forms 4.03 Extension of Time 4.04 Ratio of Assessed Value to Market Value - Effect on State Aid or Turn-Back Funds 4.04.1 Ratio Study Performance Standards 4.05 General Rules for Appraisal Contractors 4.06 Countywide Reappraisal of Property 4.07 Completion of Reappraisal - Suspension of Penalties 4.08 Procedure for Adjustment of Taxes After Reappraisal or Reassessment of Property 4.08.1 Definitions Applying to Amendment 59 12/20/00 ii 19 19 20 21 21 21 22 32 34 34 36 36 4.09 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 Chapter 5: Assessment Coordination Department Valuation Guides and Forms 5.01 5.02 12/20/00 Comprehensive Countywide Reappraisals - Applicability Certification of Assessed Value Data Computation and Certification Form Personal Property Interim Millage Adjustment Valuation Guidelines Implementation of Millage Rollback in Fringe School Districts Training Criteria for Appraisers Property Used for Other than Church Purposes Assessment of Personal Property Taxes by Mail or by Telephone Valuation Procedures Uniform Notice of Real Estate Value Change Valuation Guides Forms For use by Assessors or Reappraisal Firms For use by County Clerks For use by Governing Bodies of Taxing Units For use by Equalization Board & County Clerk as Ex-Officio Secretary of the County Equalization Board Miscellaneous iii 37 38 39 39 39 39 39 40 40 40 40 42 42 42 42 43 43 43 44 CHAPTER ONE GENERAL PROVISIONS RULE 1.01 STATUTORY AUTHORITY CREATING ASSESSMENT COORDINATION DEPARTMENT Act 436 of 1997 created the ASSESSMENT COORDINATION DEPARTMENT and pursuant to Arkansas Code Annotated 25-2-105 (Type 2 transfers) transferred the Assessment Coordination Division from the Public Service Commission to the Assessment Coordination Department. RULE 1.02 GENERAL SCOPE OF AUTHORITY STATUTORY AUTHORITY: A.C.A. 25-28-103 And 26-24-102 The ASSESSMENT COORDINATION DEPARTMENT has the full power and authority in the administration of the property tax laws of this state to exercise general and complete supervision and control over: 1. The valuation, assessment and equalization of all property in the state of Arkansas except that remaining under the jurisdiction of the Public Service Commission; 2. The several county assessors, county boards of review and equalization, and other officers charged with assessment or equalization of property throughout the state, to the end that all assessments on property in this state shall be made in relative proportion to the just and true value thereof, in substantial compliance with the law. RULE 1.03 DESCRIPTION OF ORGANIZATION The Assessment Coordination Department welcomes inquiries from the public. Areas of responsibility are assigned to Divisions within the Department. The Assessment Coordination Department is composed of an Administrative body consisting of its Director, Deputy Director, Legal Counsel, Division Managers and support staff. 1. Division One is comprised of the Director, Deputy Director, Legal Counsel, and one Research and Development/Technical Support staff. 2. Division Two encompasses the following areas: Personal property assessment, business personal property data collection and assessment, educational programs, 12/20/00 1 oil and gas assessment, agricultural land assessment, and the personal and business property ratio study. The manager of Division One shall be designated as the Ratio Study Coordinator for the sections of Personal and Business Personal Property. 3. Division Three encompasses the following areas: Computer operations, data management, statistical analysis, and overall coordination of the real estate property ratio study. The Manager of Division Two shall be designated as Ratio Study Coordinator for the sections of Market Value Real Estate Property and Agricultural Land. 4. Division Four encompasses the following operations: personnel, budgeting/ accounting, fiscal operations, compilation and formalization of annual ratio studies, collection and publication of assessment and millage data, auditing of and assistance with county millage rollbacks, and support services for interdepartmental divisions. 5. Division Five encompasses the following areas: Data collection and confirmation on real estate assessments, personal property assessments collection and field appraisals. RULE 1.04 PUBLIC INSPECTION All orders, decisions, opinions, rules and other written statements of policy or interpretations formulated, adopted or used by the ASSESSMENT COORDINATION DEPARTMENT in the discharge of its functions are available for copying and public inspection at its offices at 1614 West Third Street, Little Rock, Arkansas during the regular business hours of the custodian of the records which is generally between the hours of 8:00 a.m., and 4:30 p.m., Monday through Friday of each week, with the exception of state holidays. RULE 1.05 THE ARKANSAS FREEDOM OF INFORMATION ACT OF 1967 STATUTORY AUTHORITY: A.C.A. 25-19-101 et. seq. The Assessment Coordination Department shall fully comply with The Arkansas Freedom of Information Act of 1967, as amended. Photocopies of documents shall be 504 each. 12/20/00 2 CHAPTER TWO GENERAL RULES OF PRACTICE AND PROCEDURE RULE 2.01 PETITIONS FOR DECLARATORY ORDERS STATUTORY AUTHORITY: A.C.A. 25-15-206 Pursuant to Acts 1967, No. 434, Petitions for declaratory orders as to the applicability of any rule, statute, or order enforced by The Assessment Coordination Department shall be in writing and signed by the Petitioner. Petitions shall be filed in duplicate with the Director of the Department, who shall have the date of receipt stamped thereon and return one copy to the Petitioner. All Petitions for Declaratory Orders shall be titled as such. 1. In those instances in which the Department=s response to a petition for a declaratory order is to be based on the opinion of the Attorney General, the Director shall issue its Declaratory Order promptly on receipt of the official opinion of the Attorney General. 2. With respect to all other petitions, the Director shall issue a Declaratory Order in response to said petition within fifteen (15) working days from the date of filing by mailing a copy of the order to petitioner by certified mail. RULE 2.02 PUBLIC RIGHT TO PETITION STATUTORY AUTHORITY: A.C.A. 25-15-204 Any person has the right to petition for the issuance, amendment, or repeal of any rule. Within thirty (30) days after submission of a petition, the Assessment Coordination Department shall either deny the petition, stating in writing its reasons for the denial, or shall initiate rule-making proceedings. 12/20/00 3 CHAPTER 3 IMPLEMENTATION OF ACT 1185 OF 1999 RULE 3.01 APPRAISAL MANAGER EXAMINATION STATUTORY AUTHORITY: Act 1185 of 1999. The ACD shall contract with a qualified individual with adequate training and experience necessary to formulate an appropriate examination designed to test one=s ability to perform as an appraisal manager. The examination shall emphasize theory and practice of mass appraisal as opposed to conventional single property appraisal, be designed in two sections and shall include, but not be limited to: the first section of the appraisal manager exam shall be a multiple choice exam designed to test the individual=s knowledge of mass appraisal terminology and theory. The second section of the exam shall be a case study or studies. The case study portion of the exam will provide the student with a sample county, and require the student to work out the appropriate number of personnel, and budgets necessary to perform a countywide reappraisal. The proficiency exam will contain subject matter of the IAAO Administration Course, and will cover the Arkansas property valuation system, sales editing, neighborhood delineation, use of location factors, and effective ages. RULE 3.02 PREREQUISITES FOR APPRAISAL MANAGER EXAM Prerequisites for eligibility to take the exam shall include; Level 4 Appraiser as designated by the State of Arkansas Training and Certification Program, or IAAO educational equivalent, AND a minimum of four years experience in the mass appraisal field. RULE 3.03 (Repealed 12/1/2000) RULE 3.04 ADMINISTRATION OF APPRAISAL MANAGER EXAM The author of the appraisal manager exam will be responsible for administering the first examination, and the ACD shall be responsible for administering later editions. No fee shall be charged for the first taking of the examination. A fee of $100 will be charged for each subsequent taking of the examination. 12/20/00 4 RULE 3.05 SUBMISSION OF REAPPRAISAL PLANS Each county shall be required to submit a plan to the ACD detailing how a reappraisal, whether performed in-house or contracted, will be accomplished over a prescribed time period. The purpose of the plan will be twofold - First, to be certain that all the needed tasks of a reappraisal are completed, and second, to insure that all reappraisal projects meet a statewide standard of quality and uniformity. The plan will include the county or contractor=s calendar of scheduled events in order for the appraiser to locate, identify, and appraise all taxable property in accordance with state laws and administrative procedures. The plan will specify that the first phase of the plan will be to canvass all parcels, will include site inspection with improvements reviewed, and all pertinent quantitative and qualitative data gathered, and improvements will be measured when necessary. Provision will be made in each year of the reappraisal plan for the discovery, listing, and valuation of newly discovered and newly constructed property. Additionally, the reappraisal plan will detail plans for revaluation notices and the appeals process for these types of properties. The required reappraisal plan must include detailed information including parcel counts, existing resources, expected production levels, personnel needs, and budgets. The appraisal plan must also acknowledge pre-established requirements relating to minimum qualifications of various employees, minimum progress at various points in time, and minimum levels of quality in regard to property valuations before notices of revaluation are mailed. RULE 3.06 DUE DATE FOR REAPPRAISAL PLANS On or before August 10, 1999, the ACD will mail a certified letter to each county assessor stating the year the county will be required to reappraise under Act 1185, and a date due for the first required reappraisal plan. RULE 3.07 REAPPRAISAL PLANS FOR 2, 3, 4, OR 5 YEARS In the case of counties that fail an assessment ratio in 1999, the required reappraisal plan will describe a reappraisal that will be completed in 2001. For those plans, phase one (data collection) will cover the year 2000, and phase two (valuation) will cover the year 2001. 12/20/00 5 In the case of the first group of counties selected by the ACD to reappraise in 2002, the required reappraisal plan will describe a reappraisal which will be completed in 2002. For those plans, phase one (data collection) will cover the years 2000 and 2001, and phase two (valuation) will cover 2002. In the case of the group of counties selected by the ACD to reappraise in 2003, the required reappraisal plan will describe a reappraisal which will be completed in 2003. For those plans, the first year, (2000) will cover the appraisal of new construction only, phase one (data collection) will cover the years 2001 and 2002, and phase two (valuation) will cover the year 2003. In the case of the group of counties selected by the ACD to reappraise in 2004, the required reappraisal plan will describe a reappraisal which will be completed in 2004. For those plans, the first two years (2000 and 2001) will cover the appraisal of new construction only. Phase one (data collection) will cover the years 2002 and 2003, and phase two (valuation) will cover the year 2004. RULE 3.08 EXCEPTIONS TO RULE 3.7 Exceptions to the requirements listed above would include those counties that have a reappraisal underway in 1999, whether a contracted reappraisal, or an In-house reappraisal, with an anticipated completion date of 2000 or 2001. Those reappraisals will be allowed to continue, and will be eligible for funding beginning in January, 2000. When those reappraisals are completed in 2000 or 2001, the county will be required to submit a new, 3 year reappraisal plan, with an appropriate completion date of 2003, or 2004. A further exception to RULE 3.7 would be that if a county is selected by the ACD to reappraise in 2004, but already has a reappraisal underway that is due to complete in 2000 or 2001, the reappraisal plan will not be limited to appraising new construction only in the first two years. RULE 3.09 FORMAT FOR REAPPRAISAL PLANS The ACD will provide a complete format for the reappraisal plan, and the plan will be required to be completed on this specific form. Any variation from these standardized plans must be pre-approved by the ACD. RULE 3.10 PARCEL COUNT INFORMATION Reappraisal plans shall contain detailed parcel count information in two formats, using the forms described in Rule 5.2 as A-13 AParcel Count Form A@ and A-14 AParcel Count Form B@. 12/20/00 6 RULE 3.11 ORDER OF REAPPRAISAL PROGRESS Reappraisal plans will specify exact order in which townships will be reviewed during phase one of the reappraisal. An alternative will allow the reappraisal plan to appraise all cities in a county first, and then appraise all non-city properties in township order. Regardless of which plan is utilized, appraisers will be required to meet or exceed the monthly production tables established in the reappraisal plan. Reappraisal plans will specify expected progress by township or city, and number of parcels, planned for each month, during phase one (data collection) of the reappraisal. For these purposes, Amonth@ is defined as the 20th of the preceding month through the 19th of the current month. RULE 3.12 REAPPRAISAL MANAGER TO BE NAMED IN REAPPRAISAL PLAN Each reappraisal plan will name a specific person as manager of the reappraisal. RULE 3.13 EXISTING RESOURCES Reappraisal plans will list in reasonable detail the reappraisal resources already existing within a county. Those resources shall include but not be limited to: Computer hardware, mapping records, available office space, vehicles, existing personnel (listed by certification levels and current job duties). In particular, the reappraisal plan will describe computer hardware and mapping records currently available, and will describe office space available for the purpose of real estate appraisal. The reappraisal plan will list in detail how much physical data has already been gathered by field appraisers and entered into the county=s CAMA system. The reappraisal plan will also describe the level of data entry regarding real estate sales information. RULE 3.14 REAPPRAISAL BUDGETS Each county that undertakes an in-house reappraisal must provide and attach a copy of a reappraisal budget to the reappraisal plan. The reappraisal budget will be on a prescribed form furnished by the ACD and will cover all costs associated with the reappraisal of real estate. 12/20/00 7 RULE 3.15 MINIMUM EXPECTED PRODUCTION LEVELS FOR IN-HOUSE REAPPRAISALS Manpower needs necessary for any reappraisal are calculated based on known parcel numbers, working days available, and anticipated production levels per worker. Production levels shown in rules 3.15.1 through 3.15.4 are minimum production levels, per worker, per day, to be used for the preparation of appraisal budgets for those counties which choose to perform in-house reappraisals. RULE 3.15.1 FULL REAPPRAISAL PROGRAM USING SINGLE APPRAISERS Entry of sales data Residential Physical data collection Physical data entry Data entry review Valuation 100 Commercial Physical data collection Physical data entry Data entry review Valuation 25 40 250 150 10 20 30 20 RULE 3.15.2 FULL REAPPRAISAL PROGRAM USING DATA GATHERERS AND REVIEW APPRAISERS Entry of sales data Residential Quantitative data collection Qualitative data collection Physical data entry Data entry review Valuation 100 Commercial Physical data collection Physical data entry Data entry review Valuation 25 50 40 250 200 10 20 30 20 RULE 3.15.3 REVIEW APPRAISAL PROGRAM USING SINGLE APPRAISERS Entry of sales data Residential Physical data collection Physical data entry Data entry review Valuation 12/20/00 100 Commercial Physical data collection Physical data entry Data entry review Valuation 40 100 250 200 8 10 20 30 20 RULE 3.15.4 REVIEW APPRAISAL PROGRAM USING DATA GATHERERS AND REVIEW APPRAISERS Entry of sales data Residential Quantitative data collection Qualitative data collection Physical data entry Data entry review Valuation 100 Commercial Physical data collection Physical data entry Data entry review Valuation 25 75 100 250 200 10 20 30 20 RULE 3.16 ALLOWABLE EXPENSES All expenses associated with the cost of maintaining current real estate appraisals on county assessment records deemed appropriate, necessary, and reasonable by the ACD, shall be reimbursed to the county. Those expenses, in general, may be considered to include salaries, office expenses, computer purchase and support, vehicle mileage expenses, and public relations. No expense that is not shown in the original budget or original request for special needs funding will be considered for reimbursement. RULE 3.17 FUNDING Funding for all reappraisals required under Act 1185 of 1999 will be in the form of a reimbursement for expenses first paid by counties, either to county assessor=s budgets, or to reappraisal firms. Appraisal plan and/or appraisal contracts must be approved before reimbursement begins. RULE 3.18 IN-HOUSE REAPPRAISAL PLANS - SIGNATURE REQUIREMENTS In-house reappraisal plans must bear the notarized signatures of the county assessor, chairman of the Board of Equalization, county judge, and the appraisal manager. The plan must be approved by a quorum court appropriation ordinance. RULE 3.19 CONTRACTED REAPPRAISAL PLANS - SIGNATURE REQUIREMENTS Contracted reappraisal plans must bear the notarized signatures of the county assessor, chairman of the Board of Equalization, county judge, an agent of the reappraisal company 12/20/00 9 performing the reappraisal, and the appraisal manager. The plan must be approved by a quorum court appropriation ordinance. RULE 3.20 PROGRESS REPORTS FROM APPRAISAL MANAGER TO ACD The appraisal manager will send to the ACD, by the twentieth day of each month, a signed progress report, detailing reappraisal progress made from the 20th of the preceding month through the 19th of the current month. The progress report will be on a specific form prescribed by the ACD. The reappraisal manager will provide a copy of the progress report to the county assessor, board of equalization, county judge and quorum court each month. RULE 3.21 REIMBURSEMENT TO COUNTIES IN EQUAL PAYMENTS Reimbursement for reappraisal costs from the state to the county will be made in even payments, once each month, at a level to be determined by dividing the total cost of reappraisal (as indicated by the original appraisal plan) by the total number of months indicated in the reappraisal plan, unless a revenue shortfall should occur. In that instance, at least one payment will be less than normal. RULE 3.22 DIRECT DEPOSITS Reimbursements will be done in the form of a direct deposit. Each county/company must have an established account and submit necessary paperwork (voided check, signed permission form, etc.) before the reimbursement process begins. RULE 3.23 REVENUE SHORTFALLS In the event the total monies budgeted for reappraisals statewide runs higher than the fiscal year appropriation to the ACD, the June payment for each county or contractor will be reduced on a pro-rata per parcel basis to prevent deficit spending. RULE 3.24 ACD TO CONDUCT PERFORMANCE AUDITS The ACD will periodically enter each county during both phase one and phase two of the county=s reappraisal to conduct a performance audit (hereinafter designated as a PA). The purpose of these audits will be to ensure reappraisal progresses as planned in a systematic and accurate fashion, and to determine if generally accepted methods and techniques are being uniformly employed. 12/20/00 10 RULE 3.25 SCOPE OF PHASE ONE PERFORMANCE AUDITS The PA will measure both the quantity and quality of the following: entry of general appraisal information, collection and entry of field data, and entry of sales information. The PA will compare gross progress of physical data collection and CAMA entry to the required progress established by the county=s reappraisal plan. Additionally, the PA will review quantitative and qualitative data from the property record cards of a random sample of improved properties. All warranty deeds which contain sales information helpful in the appraisal process must be entered into the county=s CAMA system. Deed entries must include sale date, book and page, revenue stamps or sale amount (if any), and grantor/grantee information. The appraisal manager will assure that a reasonable attempt is made to obtain sales price and confirm validity of all warranty deeds. Interior inspections of residences are not required and inaccuracies involving those items will not be regarded as errors for the purposes of the audit. RULE 3.26 DESIGN OF PROPERTY RECORD CARDS The basic design of property record cards by each class must be approved by ACD. The following entries are required (where applicable): City and Rurban Cards: Parcel Number Ownership Record and Description (Include property address when available) Sales History Appraisal Summary Assessment Summary Land Record and Computation of Land Value (Lot size is recommended but not required. However, a breakdown of value per lot should be included) Review Record Number of Cards and Card Number Sketch All Applicable Data Collection and Valuation Fields Inspected Date, Inspected By Reviewed Date, Reviewed By Entered Date, Entered By 12/20/00 11 Rural Cards: Parcel Number Ownership Record and Description (Include property address when available) Sales History Appraisal Summary Assessment Summary Review Record Land Record and Computation of Land Value (Lot size and production capability pricing is required) Review Record Number of Cards and Card Number Sketch All Applicable Data Collection and Valuation Fields Inspected Date, Inspected By Reviewed Date, Reviewed By Entered Date, Entered By Commercial/ Industrial Cards: Parcel Number Ownership Record and Description (Include property address when available) Sales History Appraisal Summary Assessment Summary Land Record and Computation of Land Value (Lot size and value per lot is required.) Review Record Number of Cards and Card Number Sketch Property Description Structural Elements All Applicable Data Collection and Valuation Fields Inspected Date, Inspected By Reviewed Date, Reviewed By Entered Date, Entered By RULE 3.27 SCOPE OF PHASE TWO PERFORMANCE AUDITS ACD auditors will review sales analysis and other procedures used in the development of overall values. This includes, but is not limited to, audits of neighborhood delineation, lot values, and location factors. Valuation entry fields on parcel cards will be checked for accuracy. 12/20/00 12 Sales ratio studies will be utilized to audit final values. Entry of sales information will be audited during both phase one and phase two. RULE 3.28.1 NEIGHBORHOOD DELINEATION FOR RESIDENTIAL NEIGHBORHOODS Residential neighborhood boundaries shall be displayed on city or county maps as appropriate. A narrative description of each boundary line for each neighborhood shall be on file at the appraisal manager=s office. In addition, a printout of the sales database used in determining the boundaries shall be kept in the same file. Residential neighborhoods that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. However, the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude boundary location. RULE 3.28.2 NEIGHBORHOOD DELINEATION FOR COMMERCIAL NEIGHBORHOODS Commercial neighborhood boundaries shall be displayed on city or county maps as appropriate. A narrative description of each boundary line for each neighborhood shall be on file at the appraisal manager=s office. In addition, a printout of the sales database and rental database used in determining the boundaries shall be kept in the same file. Commercial neighborhoods that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. Rental data should be collected unless all commercial properties in the neighborhood are owner occupied. If neither sales nor rental data are available the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude the boundary location. RULE 3.28.3 NEIGHBORHOOD DELINEATION FOR RURAL AREAS Rural region boundaries shall be displayed on county maps. A narrative description of each boundary line for each rural region shall be on file at the appraisal manager=s office. In addition, a printout of the sales database used in determining the boundaries shall be kept in the same file. 12/20/00 13 Rural regions that may be defined due to physical, economic, governmental, or social factors without the benefit of property sales are allowed. Whether sales data are available or not the narrative description of each boundary line shall include a statement outlining the physical, economic, governmental or social factors that lead the appraiser to conclude the boundary location. In addition, the appraiser shall list the property specific characteristics, i.e. paved road, municipal water, school district boundaries, etc., that are used to adjust from the general value trends and dollar influences each of these characteristics has on the property. RULE 3.29 (RESERVED) RULE 3.30 MINIMUM ACCEPTABLE STANDARDS FOR PERFORMANCE AUDITS Reappraisal performance must conform to these Rules and Regulations, and the appraisal process must uniformly employ logical and generally accepted methods and techniques that are necessary to produce credible appraisals. Phase 1 completed parcels are those which have had data collection/review and data entry. Phase 2 completed parcels are those for which valuation and corresponding entry into the CAMA system is complete. The cumulative number of parcels which are Phase 1 complete must be at least 90% of planned progress unless sufficient reason is provided on the monthly progress report and approved by ACD. Otherwise, the reappraisal will be out of compliance with progress established by the county=s reappraisal plan. For each performance audit, total errors and/or omissions must not exceed 5% for any general or specific element of the appraisal process. Failure to list a dwelling or other major improvement or placement of that improvement on wrong parcel may not occur on more than 2% of the parcels. Individual perimeter measurements of one-story dwellings must be accurate within one foot. Estimated measurements will be allowed for additional levels and for items such as driveways or fences, but these estimates should be based on techniques resulting in reasonable accuracy. All real estate improvements must be listed on each property record card. Those improvements that are deemed to have no contributory value by the appraiser must be listed with minimal description and coded uniformly by CAMA providers. Dimensional elements of NCV improvements are optional. Failure to list all such improvements will be counted on the PA as an error. The ACD will periodically audit entry of sales information during both Phase 1 and Phase 2 of the reappraisal. All deeds which necessitate a change of name or legal description that are more than 30 days past their filing date must have been entered into the county=s CAMA system. Errors and/or omissions shall not exceed 5% of the total entries. 12/20/00 14 RULE 3.31 FAILURE TO COMPLY WITH STANDARDS OF PERFORMANCE AUDIT Whenever an audit, using the standards established elsewhere in these rules, performed by the ACD indicates a reappraisal is out of compliance with those standards, that finding will be reported by certified mail to the reappraisal manager, and funding for the reappraisal project will be immediately suspended. The aforementioned letter will be copied to the county assessor, board of equalization, county judge, quorum court, and agent of the appraisal company when applicable. The appraisal manager will notify the ACD when necessary corrections have been made, at a point no later than 30 calendar days after the date of the original certified letter from the ACD. If the appraisal manager fails to take proper corrective action and make notification to the ACD, the reappraisal plan will be terminated immediately, and funding will be terminated. RULE 3.32 FALSE REPORTS OF PROGRESS Upon a finding that progress has been falsely reported on a required progress report, funding already disbursed to the county as a result of misrepresentation will be reimbursed to the state. RULE 3.33 FORCE MAJEURE The foregoing provisions notwithstanding, the ACD may grant additional time in the event of delay caused by an act of God or force majeure. RULE 3.34 CAMA SYSTEMS REQUIRED Each county must have a CAMA system before being eligible for funding. RULE 3.35 COMPUTER DATA PROPERTY OF COUNTY All data entered into a county=s CAMA system immediately becomes the property of that county. RULE 3.36 REQUIRED REPORTS 12/20/00 15 All data stored in a county=s CAMA system, whether located in the courthouse or a remote site (example: appraisal contractor=s office) will be able to provide the following reports to the ACD, both on-site, and via phone modem: (1) parcel counts, (2) production reports, (3) sales reports, and (4) additional reports developed for audit-related purposes. CAMA systems utilized by the county or appraisal contractor to perform a reappraisal must be able to tabulate a parcel count by the categories requested elsewhere in these rules. Physical data must be entered in such a way that parcel counts required in these rules may be run in a single report. RULE 3.37 DOWNLOADING CAMA DATA If necessary, the CAMA system vendors will cooperate fully to convert data from their CAMA system to that of another vendor. This will occur when a county has acquired a different CAMA system due to its own actions or has allowed an appraisal contractor to do so. A contract will be negotiated between the county and the vendor of the CAMA system. The data to be converted will be defined in the contract, but will include at a minimum the property record card data. If a fee is charged for this service it shall be limited to a reasonable amount. RULE 3.38 BID SPECS FOR CONTRACTED REAPPRAISALS All contracted reappraisals will utilize standardized bid specs and reappraisal plans developed by the ACD. Any variations from these standardized bid specifications or plans must be submitted to the ACD 30 days before advertising for requests for proposals and must be pre-approved by the ACD before advertising for requests for proposals. RULE 3.39 BIDS REQUIRED FOR CONTRACTED REAPPRAISALS Each county that contracts reappraisal services will be required to advertise for bids for the planned reappraisal and to mail a copy of the ACD approved bid specifications to all companies listed on the ACD=s Annual Register of Appraisal Companies at the time of advertising. Any bids submitted by a contractor that do not meet the ACD approved specifications shall be rejected by the county. The county shall submit to the ACD a listing of bids received and their dollar amounts. In the event that the county chooses to employ an appraisal firm other than the firm which submits a low bid, the county assessor must submit a written narrative explaining the county=s choice of firms. The narrative must be attached to the proposed appraisal contract, and explain in detail what criteria were utilized to make the decision to hire a firm other than the low bidder. Failure to comply with this rule will result in rejection of the proposed appraisal contract. 12/20/00 16 RULE 3.40 PAYMENT IN KIND SERVICES All reappraisal contracts will allow for “payment in kind@ services to be provided by county employees who participate in the reappraisal. This provision will require the appraisal contractor to reimburse the county for work contributed to the reappraisal project by county employees, on a pre-agreed basis. The provision will also provide for the appraisal contractor to have reasonable control over those employees regarding job duties, expected production, and work quality. The provision will also allow the appraisal contractor to reject poor quality work performed by a county employee, which will relieve the contractor of any obligation to pay for such work. RULE 3.41 REAPPRAISAL PLANS REQUIRED Every county must submit a reappraisal plan by a date specified by the ACD. With the consent of the county assessor, a contractor may submit an amended appraisal plan for approval by the ACD. RULE 3.42 REAPPRAISAL BUDGETS REQUIRED Any county that is performing an in-house reappraisal must submit a reappraisal budget on a form designated by the ACD, detailing projected expenses for personnel, office expenses, and all other expenses associated with the reappraisal of real estate, with the required reappraisal plan. RULE 3.43 REAPPRAISAL CONTRACTS REQUIRED Any county that is performing a contracted reappraisal must submit a signed reappraisal contract, detailing total expense for the reappraisal, with the required reappraisal plan. RULE 3.44 REJECTION OF REAPPRAISAL PLANS Should any part of a reappraisal plan fail to meet generally accepted standards, the ACD shall reject the plan. RULE 3.45 CONFLICTS WITH ACTS 440 AND 836 OF 1997 Those counties that are compelled to reappraise due to low assessment ratios are not relieved by Act 1185 of 1999 from the legal obligations previously established by Acts 440 12/20/00 17 and 836 of 1997. A county that fails an assessment ratio must complete a countywide reappraisal in compliance with Act 440 and/or 836 of 1997. Funding will be available for those counties, but may not exceed the cost to reappraise, or a maximum of seven dollars per parcel, per year. RULE 3.46 SPECIAL NEEDS Each county will be allowed to submit a request for Aspecial needs@ funding to pay for extraordinary mapping needs, computer updates, etc., along with the county=s reappraisal plan. After funding for reappraisals has been allocated, these special needs requests will be considered by the ACD. RULE 3.47 MINIMUM QUALIFICATIONS FOR APPRAISAL TASKS For the tasks listed in this section, certain minimum qualifications are hereby established, which must be met in order for the work performed to be considered valid. Before an employee, either county employee or appraisal contractor employee, may perform the following tasks, they must first have completed the ACD classes listed, or have attained the Appraiser Certification Level shown by the particular task. RULE 3.47.1 MINIMUM QUALIFICATIONS FOR APPRAISAL MANAGER Appraisal Manager- Level 4 Appraiser as certified by State of Arkansas Training and Certification Program, or IAAO educational equivalent, with a minimum of four years experience in the mass appraisal field, and successful completion of the reappraisal proficiency exam. An appraisal manager may tentatively be responsible for a maximum of one hundred thousand parcels, with the exception of those reappraisal managers responsible for the reappraisal of individual counties with a parcel count exceeding one hundred thousand parcels. Exceptions to this rule may be granted by the ACD under certain conditions, dependent on distance and other factors. RULE 3.47.2 MINIMUM QUALIFICATIONS FOR OTHER APPRAISAL TASKS Collection of Quantitative Physical Data, Residential Property - Employer Training Collection of Qualitative Physical Data, Residential Property - Level 2 Collection of Quantitative Physical Data, Commercial Property- Level 3 Collection of Qualitative Physical Data, Commercial Property - Level 3 Establishment of Neighborhood Delineation/ Location Factors - Level 4 Preliminary Valuation - Level 4 12/20/00 18 Informal Appeals, Residential Properties - Level 3 Informal Appeals, Commercial Properties - Level 4 Board of Equalization Appeals - Level 4 County Court Appeals - Level 4 Circuit Court Appeals - Reappraisal Manager RULE 3.48 MAXIMUM ANNUAL FUNDING FOR REAPPRAISALS/REVIEWS Whether the reappraisal discussed in these rules is simply a review of existing data, or a more extensive reappraisal where every improvement is measured, funding to any county will be for the actual appraisal cost, up to a maximum of seven dollars per parcel, per year. RULE 3.49 MAXIMUM FUNDING FOR APPRAISALS OF NEW CONSTRUCTION In those counties where only new construction will be appraised in 2000 or 2001, reasonable costs for that appraisal work, as determined by the ACD, whether conducted inhouse or by an appraisal firm, will be eligible for reimbursement. Those appraisal expenses will be reviewed on a county-by-county basis. RULE 3.50 ASSESSORS DUTIES OTHER THAN REAPPRAISAL COSTS NOT ELIGIBLE FOR FUNDING Certain duties of the assessor=s office, including day to day maintenance of ownership records, property owners/taxpayers inquiries, and the assessment of personal property or mineral rights are not parts of the reappraisal process, and are not eligible for funding under Acts 1155 and 1185 of 1999. RULE 3.51 DEFINITIONS RELATING TO CHAPTER 3 RULES Agricultural lands - Lands used for the production of timber, agricultural crops, or pasture. City lands - Lands within the limits of an incorporated city. Contracted reappraisal - A reappraisal conducted by non-county employees, and overseen by an appraisal manager who is an employee or principal in a reappraisal contracting firm. In-house reappraisal - A reappraisal conducted by employees of the county, and overseen by an appraisal manager who is a full time employee of that county. Neighborhood - A portion of a larger community, or an entire community, in which there is a homogeneous grouping of inhabitants, buildings, or business enterprises...It is that area within which any change has an immediate and direct influence on the value of the subject property. 12/20/00 19 Parcel - All contiguous land capable of being conveyed on a single deed, except when that tract of land crosses taxing unit or township or section lines, or an improvement only. Any legal description shall not be listed on more than one parcel. Ownership of a parcel by multiple persons does not constitute multiple parcels. Control cards, information cards, and mineral rights parcels are not to be counted as parcels for use when applying Act 1185 of 1999. Reappraisal - The estimating of the value of all taxable real property within the county as of a given date within a given time frame. Rurban lands - Lands in a recorded, platted subdivision which lie outside the limits of any incorporated city. RULE 3.52 WAIVER In order to effect the successful implementation of Act 1185 of 1999, contingent upon prior review of the Legislative Council of the General Assembly of the State of Arkansas, and upon good cause being shown, the Director of the Department may waive or suspend any provision of the rules. 12/20/00 20 CHAPTER FOUR IMPLEMENTATION OF SPECIFIC STATUTES RULE 4.01 PROCEDURES GENERALLY - EXTENSION OF LEVY DATE STATUTORY AUTHORITY: A.C.A. 14-14-904 (Acts. 1997, No. 1300 Section 24) 1. All requests for an extension of time within which to levy taxes shall be addressed to the Director of the Department, dated and signed by both the County Judge and the County Clerk. 2. All requests must state the levy date which the county officials seek to extend and the reason for the request resulting from reappraisal or rollback of taxes. RULE 4.02 GENERAL AUTHORITY TO PROMULGATE RULES AND REGULATIONS & PRESCRIBE FORMS STATUTORY AUTHORITY: A.C.A. 25-15-203, 26-24-107, 26-26-308 and 26-26-409 RULE 4.03 EXTENSION OF TIME STATUTORY AUTHORITY: A.C.A. 26-24-108 (Acts 1927, No.129 Section 12; Pope=s Dig., Section 2038) 1. All requests for an extension of time shall be addressed to the Director and shall clearly describe the report which is the subject of the extension along with the time sought and the reason for the request. 2. All requests shall be signed by the person making the request and include that person=s title. RULE 4.04 RATIO OF ASSESSED VALUE TO MARKET VALUE - EFFECT ON STATE AID OR TURN-BACK FUNDS STATUTORY AUTHORITY: A.C.A. 26-26-304 (Acts 1955, No. 153 Sections 9,12; Acts 1957, No. 304 Section 1; Acts 1959, No. 31 Section 1; Acts 1959, No. 244 Section 1; Acts 1969, No. 60 Section 1; Acts 1987, No. 838, Section 1; Acts 1997, No. 440 Section 2(g)) 12/20/00 21 RULE 4.04.1 I. RATIO STUDY PERFORMANCE STANDARDS A) PURPOSES: The ratio study performed annually by the Assessment Coordination Department has four purposes: 1. The determination of the average ratio of assessed value to the true and full market or actual value of real property, excluding agricultural lands, by classifications, in each of the counties and school districts of Arkansas; 2. The determination of the actual assessment level of real estate, including the value o f agricultural lands that qualify for a use/productivity valuation, by classification such as residential, commercial/ industrial, agricultural, etc.; 3. The determination of the average ratio of assessed value to the true and full market-or actual value of personal property in each of the counties and school districts of Arkansas; 4. The determination of the weighted coefficient of dispersion about the median ratio for market value real estate. B) STATUTORY REQUIREMENT: The ratio study shall comply with (Ark. Code Ann. 26-26-304 Repl. 1997). C) BURDEN OF PROOF: The burden of proof is on the Assessment Coordination Department to show by the preponderance of the evidence that: 1. The county assessor has not placed the real and personal property in the county on the tax record at twenty percent (20%) of the true and full market or actual value for th e assessment year or has not placed the agricultural real property in the county on the tax record at twenty percent (20%) of the use/ productivity valuation for the assessment year. 2. That the August first ratio for classifications of market value real estate, business personal property or personal property (auto and other) are below eighteen percent (18%) or above twenty-two percent (22%) of full market value for the second consecutive August one ratio study. D) OVERALL COUNTY RATIO: To obtain the overall ratio, the County=s prior year Equalization Board Abstract shall be used to determine the total assessed value in each classification of property. The classification total assessed value is then divided by the classification ratio as determined by ACD to determine the Estimated Market Value for each class. The Estimated Market 12/20/00 22 Value for the classifications are summed and then divided into the Total Assessed Value for all classes which results in the overall county ratio. E) NOTIFICATION OF FAILURE: Each Assessor will be personally notified if the county has failed its ratio prior to the time that the news is made public unless the Assessor is not available for notification. F) RATIO STUDY APPEAL PROCEDURE: Any informal appeal of a county=s August 1 ratio study for any year shall be filed with the Director of the ACD on or before August 15 of that year. An informal appeal of the results of a county=s August 1 ratio should be written so as to fully and completely advise the Assessment Coordination Department in what respects the Department has failed to produce a ratio that meets its burden of proof and should set forth in plain language the alleged facts and any proof of such failure. Each allegation should be set forth in a separate numbered paragraph. If the appeal alleges as its basis for relief that certain samples were erroneously included, each sample should be described in a separate paragraph. Upon receipt of an informal appeal, the appropriate Ratio Study Coordinator shall either accept or reject the separate allegations by paragraph number providing to the appellant an explanation as to the reason for the rejection within two weeks. The Ratio Study Coordinator shall respond to any other allegations of the appellant and, if appropriate, recompute an Amended August 1 Ratio for the county. Should a county wish to further appeal its August 1 Ratio Study or the Amended August 1 Ratio Study, the County should notify the Director of the Assessment Coordination Department within two weeks of the date of the determination by the Ratio Study Coordinator that it is thereby filing a Formal Appeal stating therein the Paragraphs of the Informal Appeal which it continues to pursue and whether the Assessor requests a personal hearing before the Director. If a personal hearing is requested, the Assessor should notify the Director prior to the hearing as to the identities of the people who will be present and participating in the hearing. The Ratio Study Coordinator shall be present at all hearings to defend the Ratio Study results. In the event, a personal hearing is not requested before the Director, the Director shall make the determination within two weeks of the Formal Appeal based on the original allegations of the appellant and the response of the Ratio Study Coordinator. II. COMPONENTS OF EACH COUNTY RATIO A. Real Property/Agricultural Land B. Business Personal Property/Personal Property 12/20/00 23 A. REAL PROPERTY COMPONENT: The classifications are: (1) market value real estate which is further divided into urban residential, rural residential, rurban and commercial industrial and (2) agricultural land which is valued by its use/productivity. MARKET VALUE REAL ESTATE CLASSIFICATION 1. This component of the ratio study shall be based on sales/assessment ratios, supplemented with appraisal/assessment ratios, as required, to meet generally accepted statistical techniques. 2. a) This component of the ratio study may include sales data for the three previous calendar years. Act 1079, p2.2 (April 5, 1999). AIn those instances when the number of appropriate sales from the calendar year previous to the assessment year is insufficient to present a statistically sound sample, the sales/assessment ratio study may include sales data for the three (3) calendar years previous to the assessment year.@ b) In a county that did not fail their last ratio study, Field Auditors shall use updated appraisal values for a neighborhood(s) in the assessment ratio study (a) only if there is ample evidence that all other neighborhood(s) which were undervalued have been properly adjusted and (b) only if there is also evidence that the remaining neighborhoods that were not revalued were properly appraised. 3. In conducting this component of the ratio study, the Arkansas Assessment Coordination Department shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers standards on ratio studies. (See Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers or the most current edition thereof, hereafter referred to as "SORS") The standard incorporates selected chapters and appendices of the Property Appraisal and Assessment Administration, published by the International Association of Assessing Officers (hereafter referred to as "PAAA"). METHOD OF DETERMINING REAL ESTATE SAMPLES To determine the number of market value real property samples, to be selected from the county and the location from which the samples are to be obtained, the total parcel count shall be computed every two years. Each school district shall be further broken down into rural, city, rurban and the number of samples actually obtained shall be computed by use of the formula and procedure described in section 8.3 Required Sample Size (See Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers and Appendix 20-3 "Sample Size" Property Appraisal and Assessment Administration, published by the International Association of Assessing Officers, 1990 edition with enough samples to assure that at the ninety-five percent confidence interval they are plus or minus ten percent accurate. 12/20/00 24 1. During the year preceding the assessment year, the Field Auditor, shall be provided with the requirements for the selection of samples for use in the Sales/Appraisal Sample Size for the county which lists each school district within the county and the number of rural, city rurban and agricultural (use) samples to be selected from each school districts. The samples selected shall be compared with the actual assessment of the particular parcel the following year. Any value changes made to a sample by h e t assessor after the sample was initially selected must be thoroughly investigated by the Field Auditors to determine whether the change was appropriate. The Field Auditor must document the assessor=s explanation and the auditor=s determination as to the appropriateness of the change and file the documentation with the Ratio Study Coordinator. 2. Prior to December first of each year, the county shall notify the Assessment Coordination Department if it has completed a reappraisal and placed those values o n its records. If the notification is made and received in a timely manner, the Assessment Coordination Department shall prior to the publication of the February first ratio study update its samples to reflect the new values. 3. The number of commercial real estate samples to be obtained is roughly ten percent on the total number of real property samples selected. 4. Appraisals are to be utilized only when sales are not available. 5. Samples may be selected by use of the Deed Book kept by the Circuit Clerk & Recorder for the county, a deed register kept by the county assessor, or a computer generated list of the entire sales in the county. In the event the Auditor uses the Assessor=s register or a computer generated list, the Auditor must first determine that the Assessor=s records are complete and up to date by comparing the Assessor=s records with a random selection of deeds taken from the Circuit Clerk=s records or, if there be a computer program to determine the accuracy of the Assessor=s records, that may be used. This process shall be documented by the Field Auditor. 6. Property sales transactions are considered to occur in a random manner. Samples shall be selected at random. The Field Auditors shall document the entire process by taking the record being used and logging a starting point and an ending point. The Field Auditor shall go through the record recording the deed book, page and deed number of each deed. If a sale is excluded, the reason shall be noted: a) The Field Auditor shall select no more than five samples per subdivision, regardless of the number of phases in that subdivision. b) The Field Auditor shall have a maximum of ten unimproved lot samples in the overall sample. c) Multiple parcel sales and splits are to be selected only if the field auditor is experiencing difficulty in locating the required number of samples. d) Samples which reflect a newly constructed building(s) on a previously unimproved 12/20/00 25 lot may be excluded. These samples shall remain in the database for review by the Ratio Study Coordinator to determine if new construction is being properly added to the assessment rolls. If it is determined that new construction is not being properly added to the assessment rolls, then the Ratio Study Coordinator, after consultation with the Director, may reintroduce some or all of these samples without notification to the County Assessor. e) The following sales shall be excluded: sales of doubtful title; Aright of way@ sales, road district, drainage district, sewer district sales; those involving courts, federal, state or local governmental agencies, sheriff=s sales, public utilities; those involving charitable, religious or educational institutions; those in which a financial institution is the buyer or seller and the lien holder, those involving administrators, executors, guardians, receivers or trustees and estates; those between related individuals or corporations; those in which the phrase Alove and affection@ are part of the consideration; those involving an Aundivided interest@ or Alife estate@; those of only mineral interests or timber rights and those which contain a land use (agricultural) valuation. At the time of the pulling of the samples, sales are screened which are patently invalid on the face of the deed, as outlined in Acquisition and Analysis of Sales Data, Sections 6.1 through section 6.42 of the Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers. VERIFICATION, EDITING AND ADJUSTMENTS TO REAL ESTATE SAMPLES 1. Following the selection of the sample, sales are further verified and edited based on Acquisition and Analysis of Sales Data: section 6.1 through section 6.4.2 of the Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers or corresponding provisions contained in any superceding edition of same. 2. With respect to section 6.4.2 through section 6.6 Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers, there shall be no adjustment for those circumstances described in section 6.5.2 through section 6.6 except there is an adjustment to the sales price when there is a stated amount of personal property included in the sales price, except in the event there be circumstances as described in section 6.5.2 and section 6.5.3 discovered by the Auditor or brought to the attention of the Assessment Coordination Department, then those samples shall not be used. This provision shall be applicable to the corresponding sections of any superceding editions of said standards of ratio studies. 3. The ultimate decision as to whether a sample should be included shall be made by the Ratio Study Coordinator; while recognizing that the statistical validity of the ratio study is of prime importance. MISCELLANEOUS 1. On receipt of the February first Preliminary Ratio Study, The Assessor shall promptly determine whether any of the samples proposed for inclusion in the study are objectionable. 2. All objections shall be made in writing and filed with the Ratio Study Coordinator by th e Assessor on or before May 31. Each sample to which there is an objection must be 12/20/00 26 identified and a full explanation provided as to why the sample should not be included. For example: if there is an objection that the sample parcel is adjoining one ownedby the purchaser, documentation must be provided. If the requested exclusion is based on information provided by another person, identify that person and obtain a signed statement from that person. The statement must contain the person=s address, telephone number and the source of the information. 3. All objections shall be considered and, if warranted, further investigation shall be conducted to determine if the objection is valid. Failure to fully document the request may be grounds to refuse the objection; however, it is the overriding goal of the Ratio Study Coordination to delete all improper samples. Failure to make the objection in a timely manner, absent some compelling circumstance which prevented the Assessor from discovering the problem with the sample, shall automatically result in the rejection of an Assessor=s request for deletion of a sample. No deletions shall be made after July 31. 4. The Ratio Study Coordinator may determine that a questioned sale sample should be included in the ratio study. A copy of the Assessors edit request report shall be returned to the assessor with notations as to which sales were included, and why they were included, or excluded from the sample and those which need additional investigation by the field auditor. Field auditors shall review the edit report with the Assessor and recommend changes to the Ratio Study Coordinator if any changes are warranted in the judgment of the auditor. 5. Field Auditors shall discuss their findings regarding objections with the Assessor prior to August first, if the Ratio Study Coordinator for Market Value Real Estate has not done so. AGRICULTURAL LAND CLASSIFICATION In conducting this component of the ratio study, the Arkansas Assessment Coordination Department shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers standards on ratio studies. (See Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers or the current edition of same, hereafter referred to as "SORS", which incorporates selected chapters and appendices of the Property Appraisal and Assessment Administration, published by the International Association of Assessing Officers, 1990 edition or current edition, hereafter referred to as "PAAA"). 1. DEFINITION OF TERMS: Terms used in connection with the ratio study on market value real property shall be as defined in Section 14, "SORS." AND "PAAA." 2. The ratio study on agriculture land shall be based on a physical examination of the records of each assessor's office to determine the degree of compliance with the criteria established in the Assessment Coordination Department Agricultural Land Values Publication. 3. Agriculture samples are pulled in the year preceding the ratio study. Sales are not used. METHOD OF DETERMINING AGRICULTURAL LAND SAMPLES 12/20/00 27 If it is determined that a County had adopted the schedule of values established by the ACD, a minimum of fifty agricultural parcels shall be selected from each county; however, if it is determined that the County has not adopted the schedule of values, seventy-five samples shall be selected. If the county=s ratio is below fourteen percent, 100 samples shall be selected. If the County has adopted the schedule of values established by the ACD and there are minor problems relating to disparity, 60 samples shall be selected. A rural parcel count shall be taken of the county. The appropriate number of samples shall be divided in accordance with the proportion of rural parcels per school district. SELECTION OF SAMPLES At the same time as the other real estate sample requirements are provided the Field Auditor, instructions as to the number of agriculture samples to be obtained shall be provided. Prospective samples shall be selected at random. Those which bear a notation that the values have been modified for reasons other than poor management by the property owner shall not be used in the study. Any prospective sample to be excluded in this manner shall be recorded and documentation as to the validity of the exclusion obtained, otherwise the sample shall be included. The Field Auditor shall be provided a County map with school districts denoted thereon. Each year for a period of three years, the Field Auditors shall note thereon the sections from which each year=s samples have been pulled. A parcel shall not be included in the sample more than once in a three-year period. Field Auditors must visually inspect each parcel site to determine its use. PROCEDURE In July of each year the ACD will perform a ratio study to determine whether the county has used the Agriculture Land Value Tables published by the ACD in compliance with Arkansas code 26-26-407. The following is the procedure used by ACD it determining each county=s Agricultural Land ratio: 1. Publications by the Assessment Coordination Department containing the Agricultural Land Value Tables for the Southwest, Delta, Ozark and Ouachita regions of Arkansas shall be used to determine land values for agricultural land. The tables represent the Land Capability Classification System, as designated by the U.S. Department of Agriculture=s Natural Resource and Conservation Service (NRCS). There are four categories of agricultural land consisting of Crop, Rice, Pasture, and Timber, each with a value representing the productivity of the eighteen soil classes, if applicable (represented by an ACD NUMBER). This is in compliance with Arkansas code 26-26407. 2. For each sample, a ratio is computed using the county=s assessed value and the total parcel value calculated by the ACD Field Auditor. 3. To determine the county assessment ratio on agricultural land of the samples being used, totals are calculated of the county=s assessments and of the total land values a s determined by the ACD Field Auditors. The total assessment is then divided by the 12/20/00 28 ACD total land values, and that total is multiplies times 100 to establish the percent ratio for the county. 4. Field Auditors will discuss their findings regarding irregularities in agricultural land with the Assessor prior to August 1. B. PERSONAL PROPERTY COMPONENT: The classifications are: (1) Business Personal (2) Personal-Auto/other BUSINESS PERSONAL CLASSIFICATION This component of the ratio study shall be based on a physical examination of the current year=s records of each assessor's office to determine the degree of compliance with the criteria established in the Commercial Personal Property Appraisal Manual published by the Arkan