Arkansas Code § 25-20-520 - Payments in Lieu of Taxes

(a) A public body under this subchapter shall make annual payments to the general fund of each participating public agency that is an Arkansas municipality or county in lieu of taxes in return for police, fire, and health protection and in return for administrative and other services furnished by the public agency.

(b) The payments shall be an operation and maintenance expense of the public body.

(c) (1) In each calendar year, the payments shall equal the amount the public agency would have received from the public body as real property taxes for the preceding calendar year if the public body's real property located in the public agency's jurisdiction, whether owned or leased by the public body, had been privately owned and subject to tax by the public agency.

(2) For purposes of this computation, the public body's real property shall be deemed to have an assessed value equal to twenty percent (20%) of book value as reflected by the public body's usual accounting procedures.

(d) Payments in lieu of taxes under this section shall be in addition to any franchise fees permitted under this subchapter.

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Last modified: November 15, 2016