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1. Identify these elements of the property tax in your state (Arkansas): Who assesses property? Are some types assessed locally and some types by the state? What valuation standard is used? When was the latest reassessment of real property? Is personal property taxed? What classification system (if any) is used? What circuit-breaker type (if any) is used? Does the circuit breaker extend beyond residential property owned by the elderly?
2. Mr. and Mrs. Woodward, an elderly couple with no dependents, have taxable source income of $8,000 and $26,000 income from Social Security. They own property assessed at $75,000 (current market value of $190,000) and are subject to a property tax rate of $5/$100 assessed value. They each receive an old-age property tax exemption of $500. They are eligible for the state property tax circuit overload is returned by the state in an income tax credit. Maximum relief paid is $600 per couple.
a. What property tax would they pay without circuit-breaker relief?
b. For how much circuit-breaker relief are they eligible?
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