Arkansas Tax Deeds

Arkansas State Overview

Arkansas is classified as a tax deed state. Tax sales are determined by the county and are held throughout the year. Investors will need to register before the auction, but in most counties you will be able to register the day of the auction. The starting bid on most tax deed properties is required by state law to be the assessed value given of the property based on the county’s assessment. The assessed value is approximately 20% of the property’s actual value. When the amount is combined with the delinquent taxes from the previous years, the beginning bid is usually 20% – 30% of the actual value. Tax deeds purchased may be redeemed by the previous owner up to 30 days after the sale. If a property has been redeemed, the investor will receive full refund of the purchased price. Property owners are given 2 years of tax delinquency before the county will foreclose on the property and take possession of the land.

Arkansas conducts tax sales through an oral auction. Investors will need to register before the auction to participate in the auction. They will be given a bidder number, which they will use for the auction. The starting bid on most tax deeds will be the assessed value given of the property based on the county’s assessment. The assessment value is approximately 20% of the properties actual value. Deeds are bid up in price until a high bid has been established. The highest bidder is awarded the deed to the property.

Arkansas holds a Premium Bid method. The starting bid includes all delinquent taxes, penalties and administrative cost. The property is bid up in price until a high bid is established. The top bidder receives the deed to the property. Investors can also place bids through the mail by a sealed bid. All bids must be mailed to the commissioner of state lands.