1. (a) When a county’s equalization board determines that current economic conditions may have caused a decrease in value of groups of real estate parcels, said equalization board shall notify the Director of the Assessment Coordination Division that:

   1. (1) They have made such determination; and
   2. (2) An investigation is pending.

2. (b) The investigation shall proceed according to the following steps:

   1. (1)

      1. (A) A ratio study shall be completed by the equalization board or its contractor for each neighborhood (as defined by Assessment Coordination Division rules) in the county.
      2. (B)

3. (i) The preceding calendar year sales shall be used in the study.

   1. (ii) No sales for the current year may be used.

      1. (C) The sales validation process shall be completed for those sales used in the study;
   2. (2) The equalization board may submit its standard full parcel extract, which includes current value and findings, to the division for review and evaluation;

   3. (3)

      1. (A) At this point, the equalization board may choose to proceed or not to proceed with the documentation of a plan for determining which neighborhoods require adjustment.
      2. (B) Using the ratio studies completed in subdivision (b)(1) of this section, determine the range of ratios to be adjusted.

      3. (C)

         1. (i) The equalization board shall document the types of evidence to be considered acceptable for adjustment of value.
         2. (ii) Some may be:
4. (a) (a) Valid sales;

5. (b) (b) Long-term listings; and

   1. (c) (c) The influence on market value of any foreclosure-related sales.

      1. (D)

         1. (i) The equalization board shall document the level of evidence necessary for adjustment to be considered.
         2. (ii) Examples are:
6. (a) (a) Number of sales/listings; and

7. (b) (b) Average number of days on market;

   1. (4)

      1. (A) The equalization board shall document a plan for adjusting values in such neighborhoods.
      2. (B) Determine the target ratio.

      3. (C)

         1. (i) Determine what information will be used to develop revised values.
         2. (ii) Examples are:
8. (a) (a) Valid sales;

9. (b) (b) Long-term listings; and

   1. (c) (c) The influence on market value caused by any foreclosure-related sales.

      1. (D) Determine the amount of information necessary to develop a credible value:

         1. (i) Number of sales/listings; and
         2. (ii) Average number of days on market;

   2. (5)

      1. (A) The equalization board shall document a plan for public relations related to revised values.

      2. (B) Some actions to consider are:

         1. (i) Conversations with affected taxing entities;
         2. (ii) Press releases;
         3. (iii) Talking to reporters at equalization board meetings; and
         4. (iv) Notices/letters to property owners by a certain date; and

   3. (6) The equalization board shall document a plan for board adjustments to adjusted values during the appeals process.

      1. (c)
   4. (1) Once a plan of action is developed and prior to any actual value adjustments being made, the equalization board shall present the plan to the division along with proposed values for each parcel.

   5. (2) The equalization board shall include documentation regarding:

      1. (A) How it developed its plan; and
      2. (B) Why the plan was chosen as the most appropriate.

   6. (3) After discussion with the equalization board and/or its representatives, the division will:

      1. (A) Approve or disapprove the plan as is; or

      2. (B) Approve the plan contingent upon specific requirements being met.

         1. (d) All analysis and/or adjustments shall be done in accordance with standard division reappraisal rules, including oversight by a qualified appraisal manager.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Adopted by emergency procedure 06/12/09 Adopted by permanent procedure 04/26/10 Amended 12/07/12"