Q: How does the Amendment 79 Tax Credit work?
Amendment 79 provides a tax credit for property owners on their homestead (your primary residence) property. There are only two requirements for eligibility:
- The property is your primary residence.
- You are the owner of record.
The credit is itemized on your Real Estate Tax bill as a credit toward the amount of your taxes due.
Q: If my assessment is frozen (because I am over 65 and I applied for the value freeze), do I still get the Amendment 79 Tax Credit?
Q: Will I receive a refund check?
No. Amendment 79 is a CREDIT which is applied to your Real Estate Tax bill.
Q: I only received the tax credit on one of my properties. What about the other properties that I did not receive a tax credit on?
You are only eligible to receive the credit on your primary/homestead property, and only on one property per taxpayer.
Q: I just found out about the Amendment 79 Tax Credit. I do not understand why I cannot receive the credit for all of the years I missed and why it was not automatically applied to all homeowners?
First we need to verify that the property that you are applying to receive the credit on is your primary / homestead residence. Arkansas State Law requires that all homeowners must apply to be declared eligible and to receive the credit, and the homeowner’s signature is required to process the application. All applications must be submitted by October 15th on any given year to receive the credit for that year.
The tax credit is not automatically applied to all homeowners because it is a voluntary tax cedit.
Q: Do I have to reapply every year?
No. Once you have applied for and received the credit, you do not have to reapply each year. The only time that you would need to reapply for the credit would be when you change your primary place of residence (i.e. sell your house and buy a different one).
Q: Where do I put the Amendment 79 Tax Credit on my income taxes?
You do not put the tax credit on your income taxes.
Q: What does “I am buying on a land contract” mean?
A land contract is a Purchase Agreement between the Seller and the Buyer. The Seller carries the note (no bank is involved) and the Buyer makes payments directly to the Seller. The Buyer does not receive the deed from the Seller (which would grant the Buyer ownership of the property) until the Seller has received the final payment, which satisfies the Buyer’s financial obligation to the Seller. In our records, ownership is not transferred until we receive a deed. The Buyer of a land contract arrangement may instead apply for the tax credit if the Purchase Agreement has been filed and recorded in the Circuit Clerk’s Office.
Q: How are my taxes calculated in relation to Amendment 79?
Amendment 79 provides a cap on how much an assessment can be increased. A homestead (primary residence) can only be increased by a maximum of 5% per year. All other property assessments can only be increased by a maximum of 10% per year. Exceptions to this would include physical changes to your property (such as a new addition or a new outbuilding).