amount of revenue lost to the municipality by reason of the exemption authorized in those provisions may be reimbursed to the municipality by the State. (i) In (e)-(i) of this section the term "real property" includes, but is not limited to, mobile homes, whether classified as real or personal property for municipal tax purposes. (Sec. 2, ch. 118, SLA 1972.) Answer 14 Specific reference to the State's system of property taxation is found in Alaska constitution, article IX, as follows: Section I. The power of taxation shall never be surrendered. This power shall not be suspended or contracted away, except as provided in this article. This section refers to the State's power of taxation. Section II. The lands and other property belonging to citizens of the United States residing without the State shall never be taxed at a higher rate than the lands and other property belonging to the residents of the State. This section refers to nondiscrimination. Section III. Standards for appraisal of all property assessed by the State or its political subdivisions shall be prescribed by law. This section refers to the Municipal Code AS 29.53.060. Full and True Value. Section IV. The real and personal property of the State or its political subdivisions shall be exempt from taxation under conditions and exceptions which may be provided by law. All, or any portion of, property used exclusively for nonprofit religious, charitable, cemetery, or educational purposes, as defined by law, shall be exempt from taxation. Other exemptions of like or different kind may be granted by general law. All valid existing exemptions shall be retained until otherwise provided by law. This section refers to the exemptions as authorized by State law and outlined in question No. 11. Section V. Private leaseholds, contracts, or interests in land or property owned or held by the United States, the State, or its political subdivisions, shall be taxable to the extent of the interets. This section permits the taxation of private interests in government property. The county tax assessors are the only local assessors in Arizona, and they are not required to meet any professional qualifications. Answer 3 Arizona has no salary incentives for assessors who complete special training courses; however, all of Arizona's assessors have voluntarily completed appraisal and assessment administration courses, and have enrolled many of their employees in these courses. Answer 4 The county assessor and the county board of supervisors judge initial appeals on property tax assessments, and they are elected. They derive their authority to hear such appeals from the fact that they hold office. Answer 5 The three members of the State level property tax appeals board are appointed for a term of 6 years by the Governor of the State. This board has the responsibility for hearing property tax appeals from decisions at the county level, and for equalizing property valuations throughout the entire State. Answer 6 The Arizona State Department of Property Valuation conducts field ratio studies on a continuing basis, and they are distributed to the county assessors as working tools to maintain statewide equalization of values at market levels. All kinds of property for which there is sales data is included in the sales ratio study. Answer 7 The annual budget for the State agency charged with supervision of property tax assessments is $1,400,000; however, this includes the cost of property tax data processing for 11 of Arizona's 14 counties. There are 72 professional staff employees, and there are 27 industrial appraisers. Answer 8 There have been no changes in the size of assessment districts in the State of Arizona in the past 10 years. Answer 9 The State imposes an ad valorem tax on livestock, farm equipment and machinery, and standing timber. In 1968, the electorate of Arizona voted to exempt household goods and furnishings from ad valorem taxation. This was motivated by the difficulty of applying standard valuation methods and techniques to the appraisal of such property. Answer 10 The State of Arizona has a classification system setting up different levels of assessed value for different classes of property. This clas sification system was upheld by the U.S. Supreme Court. Briefly, the system provides that all property shall be valued at its full cash or market value for property tax purposes. Then, the assessed value is determined as a fraction of this amount, depending upon the classification. Producing mines, railroads, airline flight property, private car companies, and standing timber is assessed at 60 percent of market value. Gas, water, electric utilities, pipelines, and communications companies, are assessed at 40 percent of market value. All remaining commercial and industrial property and rented residential property is assessed at 25 percent of market value. All property not included in the above classifications is assessed at 10 percent of market value. This major grouping would include owner-occupied homes, vacant land, and all property used for agricultural purposes. There is one other classification, and that is producing gas and oil, which is assessed at 100 percent of market value. Answer 11 The State exempts the real property owned by religious and charitable institutions and used exclusively for worship purposes from ad valorem taxation. Also, a certain amount of property owned by widows and veterans is exempt, provided proper application is made and the applicant qualifies under some rigid statutory requirements. Answer 12 The State of Arizona has no "greenbelt" laws. Answer 13 The State of Arizona has no provision for relief of property taxes. Answer 14 The provisions of the Arizona constitution that make specific reference to the system of property taxation are article IX, sections 1, 2, 3 and 6, and article XX, section 5. Article IX, section 1, provides that the power of taxation shall never be surrendered, suspended or contracted away and that all taxes shall be uniform within the territorial limits of the authority levying the tax, and shall be levied and collected for public purposes only. Article IX, section 2, pertains to tax exemptions and provides for mandatory and discretionary exemption. Discretionary exemptions may be made by the legislature. All property not exempt from taxation is subject to taxation. Article IX, section 3, provides for an annual tax sufficient with other sources of revenue to defray the ordinary expenses of the State for each fiscal year. Article IX, section 6, provides that incorporated cities, towns and villages may provide for local improvements by special taxation of property benefited and that all municipal corporations have the authority to assess and collect taxes. Article XX, section 5, prohibits discrimination against nonresidents of the State in taxation and prohibits State taxation of the property of Indians on Indian reservations. NOTE.-By constitutional amendment, Arkansas State government does not share in revenues derived from the property tax. Answer 2 In Arkansas the county assessor serves as the appraiser and assessor for all taxing units-county, city and school districts. The assessor is elected for a 2-year term. The election laws do not require any educational or technical qualifications. Answer 3 Because of constitutional salary limits it is not possible to provide salary incentives for assessors who complete special training course. The State provides an annual 3-day assessors training seminar. Attendance on the part of assessors is not mandatory. Answer 4 Local appeal boards-county equalization boards-are empowered to make adjustments in assessments for the benefit of equalization only. Board members are appointed-one-third by the county judge; onethird by the majority of the members of school district boards; and one-third by the majority of elected city and town council members. Board members cannot hold other public offices. Answer 5 Arkansas does not have a State-level tax assessment review agency, per se. The tax division of the public service commission does, by special statutes, assess utility and carrier property only. They are not empowered to supervise local assessment standards and administration. Answer 6 The assessment coordination division of public service commission annually conducts an assessment ratio, which is not necessarily a sales-assessment ratio. The assessment coordination division issues value manuals, periodically, giving the assessors what is termed “full or actual values for residential, rural, commercial, industrial and tangible personal property." As a check on compliance, the above division conducts actual physical appraisal on 3 percent of the above properties, approximately every 3 years. The assessment ratio is the relationship between the division's 3-percent random sample appraisal and the assessors assessment of identical properties. Preliminary ratio studies are published August 1; final studies are published December 31. Equalization boards thus have the interval of approximately 5 months to make adjustments before the application of penalties for noncompliance. Answer 7 As explained above, Arkansas has no agency charged with the supervision of property tax assessments. The combined personnel of the tax division (utilities and carriers) and the assessment coordination division (advisory duties) have a total of 35 employees. The combined budgets are approximately $420,000. Of the 35 employees. 19 are field appraisers or researchers. Two of the nineteen above are qualified to make industrial appraisals. Answer 8 Since all property assessments are made by the county assessor, there have been no changes in assessment districts-merely the 75 counties, which are not subject to change. Answer 9 Arkansas imposes an ad valorem tax on the following kinds of personal property mentioned in your questionnaire: Motor vehicles; Household goods and furniture: Farm equipment and machinery. By statute and usage standing timber is a part of the realty and so assessed. The assessment of intangibles, while perfectly legal, is largely ignored by county assessors because of his inability to discover and evaluate such property. None of the above classes of personal property have or can be exempted under Arkansas' constitution. Answer 10 Arkansas' constitution at article 16, section 5, contains the following language: "No one species of property from which a tax may be collected shall be taxed higher than another species of property of equal value." This clause rules out any property classification system. |