1. (a) Definitions relating to Amendment 59 and Acts 1981, No. 848. As used in this part:

   1. (1) “Base year” means the year when reassessed values are entered on assessment roll;

   2. (2) “Bona fide agricultural land” means land that is devoted to the production of commercial quantities of plant products to be used:

      1. (A) For human consumption;
      2. (B) For animal feed; or
      3. (C) As a textile;
   3. (3) “Bona fide pasture land” means land to benefit grazing animals or growing forage crops with the intent of selling or storing for future use;

   4. (4)

      1. (A) “Bona fide timber land” means forest land that is:

2. (i) Producing, or capable of producing, crops of industrial wood; and

   1. (ii) Not withdrawn from timber utilization.

      1. (B) See Appendix, page 30, “Forest Resources of Arkansas”, Southern Forest Experiment Station, Resource Bulletin SO-169, Feb. 1992;

   2. (5) “Countywide appraisal” means mass appraisal of certain classes of properties within a county, provided those other classes of property not reappraised:

      1. (A) Have had their values reviewed; and
      2. (B) Are currently assessed at acceptable levels;

   3. (6) “Market value” means the most probable sale price of a property in terms of money in a competitive and open market, assuming that the:

      1. (A) Buyer and seller are acting prudently and knowledgeable, allowing sufficient time for the sale; and
      2. (B) Transaction is not affected by undue pressures;

   4. (7) “Mass appraisal” means estimating the value of a group of properties:

      1. (A) As of a given date;
      2. (B) Within a given time frame; and
      3. (C) Using generally accepted techniques;
   5. (8) “New construction and improvements” means changes to property that have occurred to property already on the assessment roll;
   6. (9) “Newly discovered property” means property that has never been on the assessment roll;
   7. (10) “Prevailing value” means value of a property as determined by the existing appraised values of other similar properties in the county;

   8. (11) “Reappraisal” means the estimating of value of all taxable real property within the county:

      1. (A) As of a given date; and
      2. (B) Within a given time frame; and
   9. (12) “Reassessment” means the process of placing reappraisal values in the official assessment record.

3. (b) Definitions relating to Amendment 79.

   1. (1) As used in this part:

      1. (A) “Full assessed value” or “assessed value” is equal to twenty percent (20%) of the full value;
      2. (B) “Full value”, “market value”, or “appraised value” means a property’s most probable selling price or current value estimate as of the statutory valuation date;

      3. (C)

         1. (i) “Substantial improvements to real property” as used in Amendment 79, § 1(b)(2), § 1(c)(2), and § 1(d)(4) means:

4. (a)

   1. (1) (a)(1) Renovation, reconstruction, and refurbishment occurring to further a change in the use and/or class of an improvement.

   2. (2) (2) Upon completion of the renovation, reconstruction, or refurbishment the assessor shall:

      1. (A) (A) Note the change in use; and
      2. (B) (B) Reappraise the improvement based upon its prevailing market value in the following assessment year.
   3. (3) (3) If multiple improvements reside on the parcel, only those that have been renovated, reconstructed, or refurbished shall be reappraised and the remainder shall continue to be valued in accordance with Amendment 79, § 1(b)(1), § 1(c)(1), or § 2(b), whichever is appropriate;

5. (b)

   1. (1) (b)(1) Renovation, reconstruction, and refurbishment occurring that will add twenty-five percent (25%) or more to the contributory value of an improvement to the property.

   2. (2) (2) Upon completion of the renovation, reconstruction, or refurbishment the assessor shall:

      1. (A) (A) Note and document the contributory value increase; and
      2. (B) (B) Reappraise the improvement based upon its prevailing market value in the following assessment year.

   3. (3) (3) If multiple improvements reside on the parcel, only those that have been renovated, reconstructed, or refurbished shall be reappraised and the remainder shall continue to be valued in accordance with Amendment 79, § 1(b)(1), § 1(c)(1), or § 2(b), whichever is appropriate; or

      1. (c) (c) Newly constructed and newly discovered property shall be assessed at full value.

         1. (ii) Note. “Substantial improvements to real property” as used in Amendment 79, § 1(b)(2), § 1(c)(2), and § 1(d)(4) does not include normal maintenance on an improvement intended to only maintain its existing utility; and

      2. (D)

         1. (i) “Taxable assessed value” means the value after any applicable limitations to full assessed value increases contained in Arkansas Constitution, Amendment 79, are applied.
         2. (ii) Taxable value will be less than or equal to full assessed value.
   4. (2) Change in use. The terms "newly discovered" and "newly constructed" as contained in Arkansas Constitution, Amendment 79, shall be construed to include change in use.

Codification Notes: Subsection (a) of this section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Adopted 10/01/99 Amended 12/20/00 Amended 07/05/04 Amended 09/25/08" Subsection (b) of this section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Adopted 10/01/99 Amended 12/20/00 Amended 07/05/04 Amended 09/25/08 Amended 4/26/10 Amended 12/07/12"