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There are 75 Counties in Arkansas and it became the 25th state on June 15, 1836. The state motto is "The People Rule". Currently Arkansas does not sell Arkansas tax lien certificates at its tax sales. Instead, it sells Arkansas tax deeds.

The process begins when home owners fail to pay their real estate property taxes (Sec. 42-1151). The income generated from real estate property taxes fund important government services like police protection, medical care, and schooling. Without this revenue cities and towns would go bankrupt.

To solve this problem local governments sell tax delinquent properties at public tax sales.

Subtitle 4. Collection And Enforcement.

26-34-101. Preference of tax liens.

(a) Taxes assessed upon real and personal property shall bind them and be entitled to preference over all judgments, executions, encumbrances, or liens whensoever created.

(b) All taxes assessed shall be a lien upon and bind the property assessed from the first Monday of January of the year in which the assessment shall be made and shall continue until the taxes, with any penalty which may accrue thereon, shall be paid. However, as between grantor and grantee, the lien shall not attach until the last date fixed by law for the county clerk to deliver the tax books to the collector in each year after the tax lien attaches.

26-34-102. Ownership error in assessment.

It shall not be necessary to the validity of an assessment or of a sale of land for taxes that it be assessed to its true owner. Rather, the taxes shall be a charge upon the real and personal property taxed and, when sold, shall vest the title in the purchaser without regard to who owned the land or other property when assessed or when sold.

26-34-103. Liability of executor or administrator.

The personal property of any deceased person shall be liable in the hands of any executor or administrator for any tax due on the same by any testator or intestate.

26-34-104. Attorney General to conduct suits.

All suits which may be brought under the provisions of this act shall be conducted by the Attorney General as other suits brought in the name of the State of Arkansas.

26-34-105. Limitation of actions on tangible property taxes.

No suit shall be brought for the recovery of overdue taxes accruing because of the underassessment of tangible personal and real property resulting from an error of the assessor after three (3) years from the date on which the taxes should have been collected in regular course.

26-34-106. Limitation of actions on intangible property taxes.

No suit shall be brought for the recovery of unpaid and overdue taxes accruing because of underassessment of intangible property after seven (7) years from the date on which the taxes should have been in regular course collected.

26-34-107. No proceedings after payment except for fraud.

After the assessment and full payment of any general property, privilege, or excise tax, no proceedings shall be brought or maintained for the reassessment of the value on which the tax is based, except for actual fraud of the taxpayer. Failure to assess taxes as required by law shall be prima facie evidence of fraud.

26-34-108. Suits against local taxing authorities.

(a) Whenever an action may be brought against any person holding the office of county collector, county assessor, or county clerk for performing or attempting to perform any duty or thing authorized by any of the provisions of this act or the laws of this state, for the collection of the public revenues, the collector, assessor, or clerk shall be allowed and paid out of the county treasury reasonable fees of counsel and other expenses for defending the action or suit and the amount of any damages or costs adjudged against him.

(b) The fees, expenses, damages, and costs shall be apportioned ratably by the county clerk among all the parties entitled to share the taxes so collected and shall be deducted by the clerk from the shares or portions of revenue at any time payable to each, including, as one of the parties, the state itself, as well as the counties, townships, towns, or cities, and other corporations or other organizations entitled thereto as indicated.

26-34-109. Common carriers not to carry goods on which tax not paid.

(a)(1) It shall be unlawful for any railroad company, bus line company, truck line company, motor vehicle carrier, or any other common carrier, whether person, firm, or corporation, or the agent or receiver thereof, to knowingly transport, or permit to be transported, within the State of Arkansas any goods, wares, merchandise, or articles whatsoever upon the sale or possession for sale of which a tax is imposed by law when the tax has not been paid upon the goods, wares, merchandise, or articles. And it shall be unlawful for any carrier to sell, offer for sale, or deliver to any person, or permit the sale or delivery of any goods, wares, merchandise, or articles upon which the tax has not been paid as required by law.

(2) Each sale, offer for sale, or delivery shall constitute a separate offense.

(b) For each violation of this section, a fine of twenty-five dollars ($25.00) shall be imposed, and the person, firm, corporation, or the agent or receiver thereof, violating any of the provisions of this section shall also be liable for the amount of tax due.

(c) All fines collected for the violation of any of the provisions of this section shall be paid into the State Treasury.

(d) All taxes due under this section may be recovered by a civil action brought at the instance of the Attorney General in the name of the Director of the Department of Finance and Administration of the State of Arkansas.

(e) This section is not to be construed to repeal any law, but it shall be cumulative to all present laws affecting the subject matter contained in this section.

26-35-101. Escrow funds for payment of real property taxes.

(a)(1) All banks, savings and loan associations, and other financial institutions and all persons, firms, or corporations which are holders of escrow funds for payment of real property taxes, within thirty (30) days after sufficient funds have accumulated in each account for the payment of property taxes, shall notify the county collector.

(2) If sufficient funds for the payment of one (1) year's taxes on real estate have accumulated within an escrow account prior to the commencement of the period in which the collector may collect real property taxes for the year in which due, this notification shall be made within thirty (30) days after the collector is authorized by law to commence collecting real property taxes during the year.

(3) Further, those holders of escrow funds must remit payment for property taxes within sixty (60) days of receipt of the tax bills from the collector.

(4)(A) Any bank, savings and loan association, or other financial institution or any person, firm, or corporation holding escrow funds for the payment of real property taxes due on properties belonging to persons for whom the escrow accounts are being held, which fails to pay to the county collector the real property taxes on the property within the time limitation imposed by this subsection, shall be subject to a penalty of ten percent (10%) of the amount of the total taxes due.

(B) The penalties shall be paid from funds belonging to the holder of the escrow account.

(b) In no event shall moneys paid as penalties for late payment of real property taxes under the provisions of subsection (a) of this section be charged against the escrow account.

(c) All penalties collected by the county collector under subsection (a) of this section shall be credited to the various taxing units of the county in the respective proportions that each taxing unit shares in real property taxes collected by the county.

26-35-201. Distraint when taxpayer about to move.

Whenever any collector shall have reason to believe that any person charged with taxes, other than those upon real estate, is about to remove from the county without paying his taxes, he may, at any time, levy and collect the taxes with costs by distress and sale.

26-35-301. Duty to pay taxes.

(a) Every person shall be liable to pay tax for the lands, town, or city lots of which he may stand seized for life, by curtesy, or in dower, or may have the care of as guardian, executor, or administrator, or as agent or attorney, having the funds of the principal in his hands.

(b) It shall be the duty of each person holding lands as indicated to pay the taxes which may be assessed thereon each year.

26-35-302. Life tenants and remaindermen.

If any person who shall be seized of lands for life shall neglect to pay the taxes thereon so long that the lands shall be sold for the payment of the taxes and shall not within one (1) year after the sale redeem them according to law, the person shall forfeit to the persons next entitled to the land in remainder or reversion all the estate which he, so neglecting as indicated, may have in the lands. The remainderman or reversioner may redeem the lands in the same manner that other lands may be redeemed after being sold for taxes. The person, so neglecting as indicated, shall be liable in an action to the next entitled to the estate for all damages that person may have sustained by the neglect.

26-35-303. Joint tenant ownership of property.

(a) In all cases where any tract of land may be owned by two (2) or more persons as joint tenants, coparceners, or tenants in common, and one (1) or more proprietors shall have paid the tax or tax and penalty charged on his proportion of the tract, or one (1) or more of the remaining proprietors shall have failed to pay his proportion of his tax or tax and penalty charged on the land and partition of the land has or shall be made between them, then the tax or tax and penalty, paid as indicated, shall be deemed to have been paid on the proportion of the tract set off to the proprietor who paid his proportion of the tax or tax and penalty, and the proprietor so paying the tax or tax and penalty, as indicated, shall hold the proportion of the tract set off to him, as indicated, free from the residue of the tax or tax and penalty charged on the tract before partition, and the proportion of the tract set off to the proprietor who shall not have paid his proportion of the tax or tax and penalty, remaining unpaid, shall be charged with the tax or tax and penalty in the same manner as if the partition had been made before the tax or tax and penalty, had been assessed.

(b) Whenever any land so held by tenants in common shall be sold upon proceedings in partition or shall be taken by the election of any of the parties to such proceedings, or when any real estate shall be sold at judicial sale, or any administrator's, executor's, guardian's, or trustee's sale, the court shall order the taxes and penalties and the interest thereon, against the lands to be discharged out of the proceeds of the sale or election.

26-35-401. Liability generally.

(a) Every person holding lands as guardian, executor, or administrator and neglecting or refusing to list or pay the taxes upon them, in the manner indicated, shall be liable to an action by his ward or devisee for any damage sustained by his neglect.

(b) Every person having the care of lands as agent or attorney as indicated having funds of the principal in his hands, for such purpose, and neglecting or refusing to list or pay the taxes on the lands shall be liable in an action to his principal for any damage the principal may have sustained by his neglect or refusal.

26-35-402. Preference of reimbursement claims.

Every attorney, agent, guardian, executor, or administrator seized or having the care of lands, as indicated, who shall be put to any trouble or expense in listing or paying the taxes on the lands, shall be allowed a reasonable compensation for the time spent, the expenses incurred, and money advanced as indicated, which shall be deemed in all courts a just charge against the person for whose benefit the services shall have been advanced. The claim shall be preferred to all other debts or claims and be a lien on the real estate as well as the personal estate of the person for whose benefit the services shall have been advanced.

26-35-501. Time to pay - Installments.

(a)(1) All ad valorem taxes levied on real and personal property by the several county courts of the state when assembled for the purpose of levying taxes, except taxes on the property of utilities and carriers and all ad valorem taxes on real property held in escrow, shall be due and payable on and from the first business day in March to and including October 10 in the year succeeding the year in which the levy is made.

(2)(A) Every taxpayer other than a utility or carrier shall have the option to pay the taxes on real property of the taxpayer in installments as follows:

(i) The first installment of one-fourth (1/4) of the amount of the taxes shall be payable on and from the third Monday in February to and including the third Monday in April;

(ii) A second installment of one-fourth (1/4) or a first installment of one-half (1/2) if no payment was made before the third Monday in April shall be payable on and from the third Monday in April to and including the third Monday in July; and

(iii) The third installment of one-half (1/2) shall be payable on and from the third Monday in July to and including October 10.

(B) A taxpayer who does not submit installment payments in compliance with this schedule shall be deemed to have waived the option to pay in installments.

(b) All ad valorem taxes levied on the real and personal property of utilities and carriers shall be due and payable as follows:

(1) One-fourth (1/4) shall be due and payable on and from the third Monday in February to and including the third Monday in April;

(2) One-fourth (1/4) shall be due and payable on and from the third Monday in April to and including the second Monday in June; and

(3) One-half (1/2) shall be due and payable on and from the third Monday in April to and including October 10 in the year succeeding the year in which the levy is made.

(c)(1) It shall be the duty of the county collectors of the respective counties to assess a penalty of ten percent (10%) against all unpaid tax balances remaining after October 10 for every taxpayer other than a utility or carrier or after the prescribed dates listed in subsection (b) of this section for utilities and carriers.

(2)(A) No taxpayer paying in installments under subdivision (a)(2) of this section shall be assessed a penalty until such taxes become due and remain unpaid after October 10.

(B) However, if the last day for the payment of taxes on any installment is a Saturday, Sunday, or postal holiday, the last day to pay taxes without a penalty is the following business day.

26-35-502. Means of payment.

The county taxes of any county of this state levied in pursuance of law shall only be payable in the lawful currency of the United States or scrip or warrants of the county by whose authority they were issued, drawn in pursuance of law and not inconsistent with this act.

26-35-503. Interest on public debt.

The tax levied to pay the interest on the public debt shall be collected in the United States currency and paid into the State Treasury in the currency collected.

26-35-504. Payment by warrants.

(a) The collector of each county in the State of Arkansas shall receive county warrants in payment of county taxes, and the orders or warrants that may be payable on presentation of any town or city for their respective taxes.

(b) This section shall not be so construed as to compel the collector to accept any order or warrant that is by the laws of this state required to be refunded.

26-35-505. Collector to receive warrants at par.

(a) No county collector or deputy county collector shall, either directly or indirectly, contract for or purchase any orders or warrants issued by the county of which he is collector, or any state warrants, town orders, or the orders or warrants of any city, town, or other body politic for which he is the collector of taxes, at any discount whatever upon the sum due on those orders or warrants.

(b) If any collector or deputy collector, directly or indirectly, contracts for, purchases, or procures any orders or warrants at any discount whatever upon the sum for which they are respectively issued, he shall not be allowed, on settlement, the amount of the warrants or orders, or any part thereof, and shall also forfeit the whole amount due on the warrants or orders and the sum of one hundred dollars ($100) for each and every breach of the provisions of this section, to be recovered in a civil action at the suit of the state for the use of the county.

(c)(1) The Treasurer of State or the person to whom the county collector of any county is required to return the state, county, city, town, village, school, or road tax is, respectively, prohibited from receiving from any county collector any warrants, orders, or bonds in payment of taxes collected by him or his deputies unless with the warrants, orders, or bonds, the county collector shall file his affidavit with the Treasurer of State or the person entitled to receive the tax, stating therein that all warrants, orders, and bonds were received at their par value and that he has faithfully performed his duties as prescribed in this section.

(2) Whoever swears falsely in this affidavit is guilty of perjury and, upon conviction, shall be punished by confinement in the state penitentiary for not less than one (1) nor more than three (3) years.

26-35-506. Credit cards.

(a) All county collectors may accept payment of county property taxes, penalties, and associated costs by an approved credit card or debit card.

(b)(1) As authorized by subsection (a) of this section, all county collectors may enter into contracts with credit card companies and may pay the fees normally charged by those companies for allowing the county collector to accept their cards as payment.

(2)(A) When a taxpayer pays his or her property taxes by an approved credit card, the county collector shall assess a service fee equal to the amount charged to the county collector by the credit card issuer.

(B) This charge may be added to and become part of any underlying obligation.

26-35-601. Personal property taxes to be collected with real estate taxes.

(a) Each county collector in this state shall be charged with the responsibility of collecting personal property taxes shown to be due by the taxpayer as reflected by the records in the county collector's office at the time the taxpayer pays the general taxes due on real estate.

(b) Any county collector willfully accepting payment of general real estate taxes without requiring the payment of personal property taxes due as reflected by the records in the county collector's office shall be deemed guilty of a misdemeanor and upon conviction shall be fined in a sum not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).

(c)(1) Except as provided in subdivisions (c)(2)-(4) of this section, it is the intention of this section to require the collection of personal property taxes as reflected by the records in the office of the county collector and to prevent a taxpayer from paying and the county collector from receiving payment of general real estate taxes without payment of personal property taxes if any personal property taxes are shown to be due.

(2) The provisions of this section shall not prevent any person, firm, partnership, or corporation from paying general real estate taxes on property securing the payment of indebtedness due the person, firm, partnership, or corporation seeking to pay the taxes.

(3) Notwithstanding the other provisions of this section, a county collector shall accept payment of general real estate taxes on a parcel of property at the time the ownership of the property is being transferred if the taxpayer transferring title to the property has paid all delinquent personal property taxes.

(4) Furthermore, a purchaser in a foreclosure sale shall not be responsible for the payment of the personal property taxes required to be paid by this section.

26-35-602. Tax money to be kept in separate account.

(a)(1) The Director of the Division of Local Affairs and Audits of the Division of Legislative Audit shall require every county collector of taxes to keep any and all tax money collected in a separate account from all other money which the county collector may have in his or her possession.

(2) A county collector shall have no authority to check on this account except in favor of a treasurer or depository to whom he or she is required to pay the money or to himself or herself for commission or salary already earned.

(b)(1)(A) Failure to comply with this section on the part of a county collector shall be a violation and shall render him or her liable to a penalty of not less than twenty-five dollars ($25.00).

(B) Each day's failure shall be considered a separate offense.

(2) Upon finding that public funds and private funds are being jointly deposited or improperly disbursed under this section, the director shall notify immediately the bondsmen of the offending officer and the public of the violation.

26-35-603. Moneys paid over upon resignation.

(a)(1) Any collector who shall resign, be removed, or be disqualified shall pay over all moneys, which may be in his hands, due the state, county, city, town, or school district, to his successor in office and take duplicate receipts therefor.

(2) One of the receipts shall be filed with the clerk of the county court and the other retained by the collector.

(b) The county clerk shall certify to the Auditor of the State the amount of the receipt, and it shall be the duty of the collector charged therewith to pay it into the treasury in the same manner and at the same time as regular revenues are to be paid.

(c) In the receipts, it shall be specified particularly on what account the moneys mentioned were received, whether from taxes or from other sources.

26-35-604. Death of collector - Duties of successor.

(a) Whenever any collector dies after he has received the tax books for any year and before he has collected the taxes charged therein, his legal representative shall hand at once to his successor, as soon as he is appointed and qualified, the tax books and pay at once all moneys, less his commission, which have been collected by the deceased collector from all sources then in his hands.

(b)(1) The new collector shall execute receipts in triplicate, to be attested by the clerk of the county court, for the tax books so delivered and showing the amount already collected upon them and the amount uncollected.

(2)(A) The new collector shall also execute receipts in triplicate for the amount of taxes collected by the deceased collector from all sources and paid over to him by the executor or administrator, one (1) of which shall be certified by the clerk to the Auditor of State, who shall charge the new collector with the balance of the state taxes due on the tax book and the amount paid over to him by the executor or administrator of the deceased collector.

(B) Another receipt shall be filed with the county clerk, who shall charge the new collector with the balance of taxes due on the tax books and with the amount paid over by the executor or administrator.

(c) The third receipt shall be given to the executor or administrator of the deceased collector.

26-35-605. Extension of time.

(a) The Governor may, by proclamation, extend the time when the penalty shall attach for making distraint, returning delinquent list, advertising and selling delinquent lands, making settlement and paying over the revenue, and for the performance of any other duty by the collectors so that the taxpayer may have the same time to pay the taxes and the collector have the same time to perform the duties of his office as allowed by law in case the failure or vacancy had not occurred.

(b) The Governor shall, in his proclamation, fix the time for the performance of the acts mentioned in this section. A copy shall be filed in the office of the county clerk and recorded in the records of the court by the clerk.

(c) The proclamation shall be published in some newspaper in the county for two (2) weeks if a newspaper is published therein.

(d) All acts and duties performed in the time fixed in the proclamation shall be as valid and binding as if performed in the time fixed by the general law.

26-35-606. Collection of real and personal property taxes.

(a) Any county tax collector may contract with one (1) or more financial institutions to act as his agents to receive real and personal property tax payments on his behalf.

(b) Tax payments received under a contract as provided for in this section shall be collected at the same time and in the same manner as all other property tax payments, and no payments shall be collected after the last payment day established by law.

(c) A financial institution receiving tax payments under a contract as provided for in this section, shall, on the first working day of each week, transmit to the county collector all property taxes received during the preceding week.

(d) As used in this section, "financial institution" means any organization or enterprise which receives deposits and forwards checks, drafts, or orders for collection and which is subject to state or federal regulation.

(e) Nothing in this section shall permit a tax collector to make any payment to a financial institution for receiving real and personal property taxes as provided in this section.

26-35-607. Cost of collecting tax.

(a) If the cost of collecting the ad valorem tax on mineral interests exceeds the annual tax on the mineral interest, then the tax shall not be billed or collected and no tax shall be owed. However, the collector shall record the amount of the tax for accounting purposes.

(b) As used in this section, the cost of collecting the ad valorem tax on mineral interests shall be the amount determined by the Director of the Assessment Coordination Division of the Department of Finance and Administration as being a reasonable amount for the cost of collection.

26-35-701. Repealed.

Repealed.

26-35-702. Location - Notice.

Sheriffs and collectors shall be permitted to collect all taxes at the county seats of the respective counties, after having given notice to be published for four (4) weeks in some newspaper published in the county and by posting notices in three (3) public places in each township to the effect that taxes are due and payable at the time specified in 26-35-501 and that the books will be kept at the county site of the county for the collection of taxes for the time mentioned.

26-35-703. Discontinuance of township visits.

(a) In all counties, including those having two (2) or more levying courts or two (2) or more judicial districts, in which the collector is required by law to visit each precinct or township in the county for the purpose of collecting taxes due, the collector shall not be required to make these visits but shall publish notice and collect the taxes as provided by 26-35-702.

(b) In any county where the collector is required to go to the various townships, he shall publish a notice in a newspaper stating that his visits to the several townships will be discontinued. The notice shall state where the taxes may be paid, and, where there are two (2) or more county sites, the notice shall advise the dates upon which taxes may be paid at the respective sites.

26-35-704. Tax books at different sites.

(a) Where there are two (2) or more county sites, the tax books shall be kept at one site part of the time and at the other site part of the time, the time to be divided between the two (2) or more sites as in the judgment of the collector will be proper.

(b) Where there are two (2) or more sites, the notices shall state the dates between which the collector will be at each county site.

26-35-705. Mailing tax statements.

No later than July 1 of each year, the sheriff or collector shall be required to mail statements of taxes due by any taxpayer to the address provided by the taxpayer. In the event that the address of the taxpayer changes, the taxpayer has an obligation to furnish the correct address.

26-35-706. Postage fee - Disposition.

(a) Every county tax collector who mails tax statements may charge the taxpayers a postage fee not to exceed the cost of first-class postage to defray the expense of processing and mailing tax statements.

(b) The postage fee shall be noted on each tax statement and shall be paid at the same time or before the tax is paid.

(c) The taxpayer's receipt shall include the amount of postage fee paid.

(d)(1) Postage fees received shall be accounted for on the collector's final settlement.

(2) The collector may use the fees to purchase postage, and any amount of fees collected in any month which are not used for the purchase of postage that month shall be deposited into the county general fund.

26-35-801. Appeals disposed of without delay.

The courts of this state shall expeditiously dispose of appeals from the county courts to the end that the revenues may be collected without unnecessary delay.

26-35-802. Payment not required pending assessment appeal.

(a) No tract or lot of real property shall be returned as delinquent for nonpayment of taxes nor shall any penalty be added to taxes due while there is pending in the circuit court or the Arkansas Supreme Court an appeal from an order of the county court fixing the assessed value of property.

(b) In the event there has been no final disposition of an appeal prior to the last day fixed by law for the payment of the taxes without penalty, the owner shall have thirty (30) days after final disposition of the appeal within which to pay taxes without penalty.

26-35-901. Taxes erroneously assessed and paid.

(a)(1) When any person has paid taxes on any real property or personal property, erroneously assessed, as defined and described in 26-28-111(c), upon satisfactory proof being adduced to the county court of this fact, the county court shall make an order directed to the county treasurer refunding to the person the amount of tax so erroneously assessed and paid.

(2) All erroneous assessment claims for property tax refunds shall be made within three (3) years from the date the taxes were paid.

(b) The general fund of the county shall be reimbursed by transfer to it from funds of the respective taxing units, and the amount contributed by each taxing unit shall be the amount of the erroneous payment received by the taxing unit.

26-35-902. Award of attorneys' fees - Disposition of residual funds.

(a) It is the public policy of this state that circuit and chancery courts may, in meritorious litigation brought under Arkansas Constitution, Article 16, 13, in which the court orders any county, city, or town to refund or return to taxpayers moneys illegally exacted by the county, city, or town, apportion a reasonable part of the recovery of the class members to attorneys of record and order the return or refund of the balance to the members of the class represented.

(b) If, after expiration of a reasonable period of time for the filing of claims for the illegally exacted moneys as ordered by the court, residual funds exist, said residual funds shall be deemed abandoned and escheat to the county, city, or town which exacted same.

26-35-1001 - 26-35-1003. [Repealed.]

Repealed.

26-35-1004. Tax receipt form.

The collector, whenever any taxes are paid, shall give the person paying them a receipt dated, numbered, and filled out so as to show by whom, on what, and amount of taxes paid, amount of land and personalty, and percentage rate at the foot of the receipts. The receipt shall be prepared for the purpose and, in case of land, distinctly specify it as it is described on the tax books. The receipt may be in the following form:

26-35-1005. Definition.

As used in this subchapter, "book" means either paper or computer storage and retrieval of tax information.

26-36-201. Dates taxes due and payable.

(a)(1) All taxes levied on real estate and personal property for the county courts of this state, when assembled for the purpose of levying taxes, shall be deemed to be due and payable at the county collector's office any time from the first business day of March to and including October 10.

(2) All taxes unpaid after October 10 shall be considered as delinquent.

(b)(1) It is the duty of the county collector to extend a penalty of ten percent (10%) against all delinquent taxpayers that have not paid their taxes within the time limit specified, and the county collector shall collect this penalty.

(2) No penalty shall be assessed against any taxpayer who is a member of the United States armed forces, reserve component of the armed forces, or the National Guard during the taxpayer's deployment plus one (1) tax year after the deployment ends.

(c) When October 10 falls on a Saturday, Sunday, or a holiday observed by the United States Postal Service, the taxes shall become due and payable the following business day that is not a holiday observed by the United States Postal Service.

26-36-202. Payment of delinquent taxes.

(a) No taxes returned delinquent shall be paid into the State Treasury except by the collector.

(b) It shall be the duty of the county clerk to add a penalty of ten percent (10%) upon all taxes returned delinquent, which shall be collected in the manner provided for the collection of delinquent taxes.

26-36-203. Publication of delinquent personal property tax list.

(a)(1)(A) No later than December 1 in each year, the county collector shall prepare a list of delinquent personal property taxes and deliver a copy of the list to a legal newspaper of the county.

(B)(i) Within seven (7) days thereafter, the newspaper shall publish the list.

(ii) The newspaper shall publish the list in at least seven-point type.

(C) If the newspaper regularly publishes a total market coverage edition or supplement publication that has wider circulation within the county or district, the newspaper may publish the list in that edition or publication.

(2) If there is no newspaper in the county or district, the publication shall be in the nearest newspaper having a general circulation in the county or district for which the list is being published.

(b) The publication shall show, besides the name of the taxpayer, the taxpayer's school district and the total amount of taxes delinquent, including penalties. The publication shall be in substance as follows:

"DELINQUENT PERSONAL TAX LIST

The personal Tax Books of ................................................County reflect the following list of personal property to be delinquent for nonpayment of taxes for the year ...........

Name School District No. Amount Due

.............................................................................

.............................................................................

.............................................................................

(ACRON, R. J. .......... C-11 .......... $21.35)

(B & B MFG. CO. ....... S-1 ......... $167.06)

.............................................................................

STATE OF ARKANSAS

COUNTY OF ..........

I, ........, Collector of Revenue within and for ........ County in the State of Arkansas, do hereby certify that the personal tax books of ........ County reflect the foregoing list of personal property to be delinquent for nonpayment of taxes for the year ........ Witness my hand this ........ day of . ........, 20 ......

COLLECTOR FOR

.................... County, Arkansas

..................... "

(c)(1) The newspaper publishing this list shall receive as publication cost the sum of one dollar and twenty-five cents ($1.25) per name, per insertion, which sum, together with fifty cents (50) per name for the county collector preparing and furnishing the list, shall be charged to the delinquent taxpayer and shall be paid by the county collector from any moneys in the county collector's possession derived from payment of personal property taxes.

(2) The receipt for the payment, verified by the certificate of the county clerk as to its correctness, shall entitle the county collector to a credit for the amount so paid.

(d) This section shall be cumulative to all existing laws relative to the collection of personal property taxes.

26-36-204. Striking of names on list.

(a) The delinquent list, together with the fees allowed to any collector, shall be delivered to his successor, and it shall be returned to the county clerk by the outgoing collector for that purpose, and so on until the whole shall be collected.

(b) After the list has been returned two (2) years, the county court shall have power to strike all names of persons who, in the opinion of the court, own no property out of which the taxes due on the list can be made by sale or otherwise.

(c) The county court shall have the authority to strike off the delinquent and assessment list at any time the names of persons who own mobile homes which are assessed as real property, improvement only, who, in the opinion of the court, have vacated the jurisdiction or own no property out of which the taxes due can be made by sale or otherwise.

26-36-205. List of delinquent officers.

The collectors shall make a delinquent list of all delinquent clerks and other officers required to pay to the collectors the amount of revenue received by them, to be called a "list of delinquent officers."

26-36-206. Distraint of goods to pay delinquent personal property taxes.

(a) At any time after October 10 in each year, after taxes may be due, the collector shall distrain sufficient goods and chattels belonging to the person charged with taxes levied upon the personal property, to pay the taxes due upon the personal property of the person and a penalty of twenty-five percent (25%) thereon, which shall be collected by the collector and paid into the county school fund, and the costs that may accrue, and shall immediately proceed to advertise it in three (3) public places in the county, stating the time when and the place where the property shall be sold.

(b)(1) If the taxes for which property is distrained, and costs which shall accrue thereon are not paid before the day appointed for sale, which shall not be less than ten (10) days after taking the property, the collector shall proceed to sell the same at public vendue, or so much thereof as will be sufficient to pay the taxes and the costs of the distress and sale.

(2) He shall not distrain any goods and chattels for taxes levied on real property, except as provided in 26-3-204.

(c)(1) The collector is authorized and empowered to levy on and sell the goods and chattels of the person liable for taxes provided, in the same manner and under the same restrictions as goods and chattels are required to be levied and sold under execution on judgment at law, when not inconsistent with the provisions of this subchapter.

(2) No goods and chattels of any person shall be exempt from levy and sale.

(d) The collector shall be allowed the same fees for making distress and sale of goods and chattels for the payment of taxes which are allowed by law to sheriffs for making levy and sale of property on execution for traveling fees to be computed at fifty cents (50) for each delinquent visited, without regard to the distance traveled.

26-36-207. Garnishment proceedings authorized.

(a) If the tax upon personal property, moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise of any person, association, or corporation shall remain unpaid after October 10 in any year and the collector is unable to find any personal property of the person, association, or corporation whereon to levy to make the taxes then due, then the collector shall present the account for taxes to any person who may be indebted to the person, association, or corporation, and demand the payment thereof. The person to whom it shall be presented shall pay over to the collector the amount of the taxes that he owes and take the collector's receipt therefor. The receipt shall be deemed and taken in all courts of this state as payment on his indebtedness to the full amount expressed on the collector's receipt.

(b) If the person should fail or refuse, on demand, to pay over the amount of the tax that he owes to the collector, the collector shall file a statement of the amount of the tax with the person so refusing, which shall operate as a garnishment upon the person so served. The collector shall proceed to collect the taxes in the manner fixed by law in cases of garnishment.

(c) No person shall be compelled to pay any debt before it may be due nor a greater amount than he may be owing the person, corporation, or association.

(d) The cost of garnishment shall be paid by the party refusing to pay the taxes when so requested.

26-36-208. Delinquent taxpayer relocating to another county.

(a) Each collector in making returns of the delinquent lists of personal property to the county clerk shall note on the margin of the returns the county in this state to which any delinquent taxpayer may have removed or resides in, with the date of his removal, if the collector is able to ascertain that fact.

(b) The county clerk shall immediately forward to the clerk of any county of this state, which any delinquent taxpayer has removed to or resides within, a certified statement or account of the taxes so assessed and not paid. The certified statement shall specify the value of the property on which the taxes were levied and the amount of the taxes levied thereon, with the penalty and cost. The collector shall proceed to collect the delinquent taxes in the same manner, and with like authority, as prescribed in this subchapter for collecting delinquent taxes upon personal property and shall make return thereof to the collector of the proper county.

26-36-209. Time and manner - Returns.

(a) The county collector may collect, at any time, all delinquent personal property tax in his or her county, or any that may be sent from another county, by the sale of property or otherwise, and the county collector shall make returns of the amount so collected to the proper counties and officers.

(b)(1) The county collector shall pay over to the county treasurer on the first of each month or within five (5) working days after the first of each month all amounts collected for his or her county under this section.

(2) However, upon a certificate of distribution of the amounts collected under this section being prepared by the county clerk or county collector, which certificate shall be issued on or before the thirtieth of each month, the county treasurer will transfer to the various funds the amount due each fund.

(c)(1) All costs associated with such delinquent personal property taxes shall be prorated to the original taxing entities.

(2) All penalties shall be divided fifty percent (50%) to the county general fund and fifty percent (50%) to the county common school fund if that county's common school fund was getting fifty percent (50%) at the time of the enactment of this subsection.

(d) For purposes of this section, the costs and penalties associated with delinquent personal property taxes shall not be considered a portion of the county collector's revenue in calculating excess commissions.

26-36-210. Counties under unit tax ledger system.

The tax collector in any county of this state utilizing the unit tax ledger system for the collection of taxes, pursuant to 26-28-201 et seq., may appoint a delinquent tax collector for the purpose of collecting the delinquent taxes in his county.

26-36-211. Liability of collector for property improperly sold.

Any collector of any county, city, or town in this state who returns to any person, personal property, or real estate delinquent, by whom or upon which taxes have been paid or advertises for sale, offers to sell, or sells any real or personal property upon which the taxes have been paid for the year for which they shall be returned delinquent, advertised, offered for sale, or sold shall forfeit and pay to the owner of the property, or any other person interested therein or who may be injured thereby, a sum equal to double the taxes, penalty, and costs charged on the personal property or land together with the actual damages as may have been sustained. For any sum so recovered, the officer and his sureties shall be liable on his official bond.

26-36-212. Delinquent ad valorem taxes on interests in oil or gas.

(a)(1) When the ad valorem taxes on working interests, royalty interests, or overriding royalty interests in oil or gas of any taxpayer is delinquent for a period of one hundred eighty (180) days or more, any one (1) or more taxing units which are entitled to a portion of the delinquent taxes when collected shall have a cause of action against the delinquent taxpayer for that portion of the delinquent taxes and costs of collection, including the penalty and interest thereon, to which the taxing units are entitled, plus a reasonable attorney's fee.

(2)(A) Any such action shall be brought in the chancery court of the county in which the delinquent taxpayer resides or in which property of the delinquent taxpayer is situated.

(B) Any judgment awarded a taxing unit in such cause of action shall be enforceable to the same extent and in the same manner as other civil judgments.

(b)(1) Any taxpayer offering to redeem tax-delinquent property after an action has been filed as authorized in this section shall be required to pay costs, including attorney fees, incurred by any taxing unit in pursuing its remedies under this section.

(2) When any judgment rendered against a delinquent taxpayer pursuant to this section is satisfied, the tax liability on the property and the amount required to be paid to redeem the property shall be reduced by the amount of the taxes, penalty, and interest included in the judgment.

26-36-301. Purposes.

(a) The purpose of this subchapter is to establish as policy that all claimant agencies and the Revenue Division of the Department of Finance and Administration shall cooperate in identifying debtors who:

(1) Qualify for refunds from the division; and

(2) Owe money to the state, to an Arkansas county, city, or town, or to a housing authority created under 14-169-101 et seq., through its various claimant agencies.

(b) It is also the intent of this subchapter that procedures be established for setting off against any such refund the sum of any debt owed to the state, to an Arkansas county, city, or town, or to a housing authority created under 14-169-101 et seq.

26-36-302. Construction.

This subchapter shall be liberally construed so as to effectuate its purposes as far as legally and practically possible.

26-36-303. Definitions.

As used in this subchapter:

(1)(A) "Claimant agency" means:

(i) State-supported colleges, universities, and technical institutes;

(ii) The Department of Health and Human Services;

(iii) The Arkansas Student Loan Authority;

(iv) The Student Loan Guarantee Foundation;

(v) The Auditor of State;

(vi) The Department of Higher Education;

(vii) The Office of Child Support Enforcement of the Revenue Division of the Department of Finance and Administration;

(viii) Arkansas circuit, county, district, or city courts;

(ix) Housing authorities created under 14-169-101 et seq.;

(x) The Employee Benefits Division of the Department of Finance and Administration; and

(xi) The Office of Personnel Management of the Division of Management Services of the Department of Finance and Administration.

(B) No other entity may be added as a claimant agency under this subdivision (1) after July 16, 2003, unless the entity has an annual outstanding debt of two hundred thousand dollars ($200,000);

(2) "Debt" means:

(A) Any liquidated sum due and owing any claimant agency, which has accrued through contract, subrogation, tort, operation of law, legal proceeding, or any other legal theory, regardless of whether there is an outstanding judgment for that sum;

(B) Accrued obligations due to an assignment of child support rights made to the state as a condition of eligibility for welfare assistance and those which have accrued from contract with the claimant agency by an individual who is not the recipient of welfare assistance;

(C) Money owed to a claimant agency as a result of a debtor's cashing both the original and the duplicate state warrants;

(D) All of the following that have been due and payable for more than one (1) year and that are not under appeal:

(i) Traffic fines;

(ii) Any court-imposed fine or cost, including fines related to the prosecution of hot checks under The Arkansas Hot Check Law, 5-37-301 et seq.; and

(iii) Restitution ordered by a circuit, county, district, or city court related to the violation of any state law;

(E) Money owed to a claimant agency for all costs as a result of the debtor's use of state medical and pharmacy benefits for which he or she is not entitled; and

(F) Money owed to a claimant agency for all costs resulting from an overpayment of wages or salaries, including a lump sum payment;

(3) "Debtor" means any individual owing money to or having a delinquent account with any claimant agency, which obligation has not been adjudicated, satisfied by court order, set aside by court order, or discharged in bankruptcy;

(4) "Division" means the Revenue Division of the Department of Finance and Administration;

(5) "Refund" means the Arkansas income tax refund which the division determines to be due any individual taxpayer less any amounts determined by the division to be due to the division for payment of any state tax as defined in the Arkansas Tax Procedure Act, 26-18-101 et seq.; and

(6) "Setoff" means the withholding of part or all of income tax refunds due individuals who owe debts to the State of Arkansas, to a county, a city, or a town, or to a housing authority created under 14-169-101 et seq.

26-36-304. Remedy cumulative.

The collection remedy under this subchapter is in addition to and not in substitution for any other remedy available by law.

26-36-305. Setoffs for claimant agencies.

Subject to the limitations contained in this subchapter, the division shall, upon request, render assistance in the collection of any delinquent account or debt owing to any claimant agency. This assistance shall be provided by setting off any refunds due the debtor from the division by the sum certified by the claimant agency as due and owing.

26-36-306. Minimum sum collectible.

A claimant agency shall not be allowed to effect final setoff and collect debts through use of the remedy established under this subchapter unless the debt is at least twenty dollars ($20.00). However, the division may set off any lesser sum, regardless of this provision, which the Director of the Department of Finance and Administration shall establish as economically justifiable.

26-36-307. Submission of claims - Information.

(a) All claimant agencies shall submit, for collection under the procedure established by this subchapter, all debts which they are owed, except in cases where the agencies are advised by the Attorney General not to submit a claim because the validity of the debt is legitimately in dispute, because an alternative means of collection is pending and believed to be adequate, or because such a collection attempt would result in a loss of federal funds.

(b) As a condition precedent to setoff, all claimant agencies shall obtain the full name and social security number and submit this information to the division and, whenever possible, also obtain and submit the address and any other identifying information required by rules promulgated by the division pursuant to the authority of 26-36-320 for any person for which the agencies provide any service or transact any business and who the claimant agencies can foresee may become a debtor under the terms of this subchapter.

26-36-308. Procedure for setoff generally.

(a)(1) A claimant agency seeking to attempt collection of a debt through setoff shall notify, in writing, the division and supply the debtor's name, social security number, and any other information necessary to identify the debtor whose refund is sought to be set off.

(2) Notification to the division and the furnishing of identifying information must occur on or before December 1 in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified, the notification shall be effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the division.

(b)(1) The division shall determine whether the debtor to the claimant agency is entitled to a refund.

(2) Upon determination by the division that a debtor specified by a claimant agency qualifies for such a refund and that a refund is pending, the division shall specify its sum and indicate the debtor's address as listed on the tax return.

(3) Each claimant agency must submit all claims for any year for collection under this subchapter to the division at one (1) time.

(4) Claims to be set off shall be submitted in a form compatible with the data processing equipment of the division, or the submitting agency shall pay the actual cost of converting their list of claims to a form which can be used by the division for effecting setoff.

(c) Unless stayed by court order, the division shall, upon certification as provided in this subchapter, set off the certified debt against the refund to which the debtor would otherwise be entitled.

26-36-309. Notification of debtor.

(a) The claimant agency shall provide written notice to the debtor whose debt has been certified to the division of its intention to intercept the debtor's tax refund.

(b)(1) The contents of the written notification to the debtor and the division's copy of the setoff claim shall clearly set forth:

(A) The basis for the claim to the refund;

(B) The intention to apply the refund against the debt to the claimant agency;

(C) The debtor's opportunity to give written notice of intent to contest the validity of the claim before the claimant agency within thirty (30) days of the date of the mailing of the notice;

(D) The mailing address to which the application for a hearing must be sent; and

(E) The fact that failure to apply for a hearing in writing within the thirty-day period will be deemed a waiver of the opportunity to contest the claim causing final setoff by default.

(2) The notification form shall be approved by the Director of the Department of Finance and Administration.

(c) The written application by the debtor for a hearing shall be effective upon mailing the application postage prepaid and properly addressed to the claimant agency.

26-36-310. Hearing procedure.

(a) If a claimant agency receives written application of the debtor's intention to contest at hearing the claim upon which the intended setoff is based, it shall grant a hearing according to procedures established under the Arkansas Administrative Procedure Act, 25-15-201 et seq. Additionally, it shall be determined at the hearing whether the claimed sum asserted as due and owing is correct, and if not, an adjustment to the claim shall be made.

(b) Pending final determination at hearing of the validity of the debt asserted by the claimant agency, no action shall be taken in furtherance of collection through the setoff procedure allowed under this subchapter.

(c) No issues may be considered at the hearing which have been previously litigated.

26-36-311. Appeals.

Appeals from action taken at hearing allowed under this subchapter shall be in accordance with the provisions of the Arkansas Administrative Procedure Act, 25-15-201 et seq.

26-36-312. Certification of debt.

(a) Upon final determination, through hearing provided for by this subchapter, of the debt due and owing the claimant agency or upon the debtor's default for failure to contest the claimant agency's right to setoff as provided for in this subchapter, mandating timely request for review of the asserted basis for setoff, the division shall hold for setoff any refund as defined in this subchapter determined to be available to the individual debtor.

(b) Any changes to the original debt certified will be accepted only if the new amount is less than the debt originally certified. Such changes will be forwarded to the division in writing and in a format acceptable to the division. Debtors' names may be deleted from the debt certification listing upon written notice to the division by the claimant agency.

(c) Upon determination that a refund is available to a debtor who has previously been certified as owing a debt to the claimant agency, the division shall finalize the setoff by transferring the refund amount, up to the amount of the debt certified, to the claimant agency and by refunding any remaining balance to the debtor.

26-36-313. Notice of final setoff.

Upon the finalization of setoff under the provisions of this subchapter, the division shall notify the debtor in writing of the action taken along with an accounting of the action taken on any refund. If there is an outstanding balance after setoff, the notice under this section shall accompany the balance when disbursed.

26-36-314. Priorities of claims.

Priority in multiple claims to refunds allowed to be set off under the provisions of this subchapter shall be corresponding to the order in time which a claimant agency has filed a written notice with the division of its intention to effect collection through setoff under this subchapter.

26-36-315. Joint refunds.

Where a taxpayer who is a debtor as defined in this subchapter has filed a joint return for which he is due a refund or has filed a separate return on the same form resulting in a joint refund, the entire amount of the refund shall be subject to setoff. Notice of setoff shall be sent to all parties entitled to the refund, and the nondebtor taxpayer may raise any defense available to the debtor.

26-36-316. Disposition of proceeds collected.

(a) Upon effecting final setoff, the Revenue Division of the Department of Finance and Administration shall periodically write checks to the respective claimant agencies for the net proceeds collected on their behalf.

(b)(1)(A) For purposes of this subchapter, except as provided under subdivision (b)(1)(B) of this section, five percent (5%) of the proceeds collected by the division through setoff shall represent the division's cost of effecting setoff, and these costs shall be charged to the respective claimant agency as a collection assistance fee.

(B) If the claimant agency is a circuit, county, district, or city court, or a housing authority created under 14-169-101 et seq., ten percent (10%) of the proceeds collected by the division through setoff shall represent the division's cost of effecting setoff and shall be charged to the respective circuit, county, district, or city court, or housing authority as a collection assistance fee.

(2) The collection assistance fees paid to the division shall be deposited into the State Treasury for credit to the Constitutional and Fiscal Agencies Fund.

26-36-317. Accounting of payments.

(a)(1) Simultaneously with the transmittal of a check for net proceeds collected to a claimant agency, the division shall provide the agency with an accounting of the setoffs finalized for which payment is being made.

(2) The accounting shall, whenever possible, include:

(A) The full names of the debtors;

(B) The debtors' social security numbers;

(C) The gross proceeds collected per individual setoff;

(D) The net proceeds collected per setoff; and

(E) The collection assistance fee charged per setoff.

(b) Upon receipt by a claimant agency of a check representing net proceeds collected on a claimant agency's behalf by the division and an accounting of the proceeds as specified under this section, the claimant agency shall credit the debtor's obligation with the gross proceeds collected.

26-36-318. Interest.

Regardless of any other provision of law, no interest shall be paid any debtor on account of any amount set off under the provisions of this subchapter. Where a debtor receives a partial refund after setoff under this subchapter, he shall be entitled to interest only on that portion of the refund which he actually receives and only where such interest is otherwise provided by law.

26-36-319. Disclosure of information.

(a) Notwithstanding 26-18-303 or any other provisions of law prohibiting disclosure by the division of the contents of taxpayer records or information and notwithstanding any confidentiality statute of any claimant agency, all information exchanged among the division, claimant agency, and the debtor which is necessary to accomplish and effectuate the intent of this subchapter is lawful.

(b) The information obtained by a claimant agency from the division in accordance with the exemption allowed by subsection (a) of this section shall only be used by a claimant agency in the pursuit of its debt collection duties and practices, and any person employed by or formerly employed by a claimant agency who discloses any such information for any other purpose, except as otherwise allowed by 26-18-303, shall be penalized in accordance with the terms of that statute.

26-36-320. Rules and regulations.

The Director of the Department of Finance and Administration is authorized to prescribe forms and make all rules which he deems necessary in order to effectuate the intent of this subchapter.

26-37-101. Transfer of tax-delinquent lands.

(a)(1) All lands upon which the taxes have not been paid for one (1) year following the date the taxes were due, October 10, shall be forfeited to the State of Arkansas and transmitted by certification to the Commissioner of State Lands for collection or sale.

(2) No tax-delinquent lands shall be sold at the county level.

(b) The county collector shall hold all tax-delinquent lands in the county for one (1) year after the date of delinquency, and, if the lands are not redeemed by the certification date, which shall be no later than July 1 of the following year, the collector shall transmit it to the state by certification, after notice as provided in this chapter, indicating all taxes, penalties, interest, and costs due and the name and last known address of the owner of record of the tax-delinquent lands.

(c) Upon receipt of the certification, title to the tax-delinquent lands shall vest in the State of Arkansas in care of the Commissioner of State Lands.

26-37-102. Publication of notice - Fee.

(a) The county collector in each county shall, not less than thirty (30) days nor more than forty (40) days prior to the certification of the land, cause to be published in a newspaper of general circulation in the county:

(1) A list of real property not previously redeemed;

(2) The names of the owners of record;

(3) The amount of the taxes, penalties, interest, and cost necessary to be paid to redeem the property;

(4) The date upon which such period of redemption expires; and

(5) Notice that unless the property is redeemed prior to the expiration of the period of redemption, the lands will be forfeited to the state.

(b) Fees for the publication shall be the same as set forth in 26-37-108 [repealed].

26-37-103. Verification by county assessor.

(a) Prior to certification to the Commissioner of State Lands, the county assessor shall:

(1) Verify the assessment to establish value on all parcels to be certified;

(2) Verify the name and last known address of the owner of record of the tax-delinquent land; and

(3) Determine whether the tax-delinquent land exists.

(b) If the land is found to be nonexistent, the county assessor shall remove the delinquent entry from the assessment rolls.

(c) No tax-delinquent lands shall be certified to the Commissioner of State Lands without the assessor's verification.

26-37-104. Costs of notices.

(a) All costs of notice shall be added to the costs to be collected from the purchaser or redeemer.

(b) Costs of notice shall include, but not be limited to, certified mail costs, newspaper and catalog costs, and title work.

26-37-105. Collection fee.

The Commissioner of State Lands shall charge a twenty-five dollar ($25.00) collection fee for each deed issued by the Commissioner of State Lands, whether the land is redeemed or sold.

26-37-106. Recording of delinquent list.

(a)(1) The county collectors of this state shall cause a list of the delinquent lands in their respective counties, as corrected by the county collectors, to be entered in a permanent record appropriately labeled.

(2) The list shall be a permanent public record and open to the inspection of the public at all times.

(b) The county clerk shall certify that the total amount of delinquent lands in this permanent record is equal to the credit allowed the county collector for delinquent lands on the current tax settlement.

(c) The record, so certified, shall be evidence of the facts contained in the list and certificate.

26-37-107. Publication of delinquent list.

(a)(1)(A) The county collectors of this state shall cause the list of the delinquent lands in their respective counties to be prepared and a copy of the list to be delivered to a legal newspaper of the county by no later than December 1 of each year.

(B)(i) Within seven (7) days thereafter, the newspaper shall publish the list.

(ii) The newspaper shall publish the list in at least seven-point type.

(C) If the newspaper regularly publishes a total market coverage edition or supplement publication that has wider circulation within the county or district, the newspaper may publish the list in that edition or publication.

(2) If there is no newspaper in the county or district, the publication shall be in the nearest newspaper having a general circulation in the county or district for which the list is being published.

(3) The list of delinquent lands shall contain at least the name of the owner and the legal description of the property as was recorded on the tax book.

(b) The publication shall be in substance as follows:

"DELINQUENT REAL ESTATE TAX LIST

The Real Estate Tax Books of ........ County reflect the following list of real property to be delinquent for nonpayment of taxes for the year ........ (The amount included in the "Tax, Penalty and Cost" column may not include all penalties and costs and will not include interest and special improvement assessments that may be due at the time of payment.)

NAME OF OWNER LEGAL DESCRIPTION BASE DELINQUENCY

Brown, Bill pt. W 1/2 NE SW Sect 6 Twp 17 Rn 5 5 Acs $44.25

Doe, John Lot 3 Blk 5 Plainview Add. $31.25

Jones, John W 1/2 Lot 8 Blk 54 Meriweather Trust $42.24

Roe, Richard SW 1/4 SE 1/4 Sec 12 Twp 18E Rn 6E 40 Acs $37.25

NOTICE IS HEREBY GIVEN THAT said several tracts, lots or parts of lots, will be held as delinquent for a one-year period from this date and then certified to the State of Arkansas, Commissioner of State Lands, for collection or to be sold, unless the delinquent taxes, penalties, and costs are paid before the end of the one-year period.

(Date of Notice) ........ Collector .......... County."

(c)(1) The legal fee for each required publication of delinquent real property tax lists shall be one dollar and fifty cents ($1.50) per tract per insertion.

(2) The fee shall be added as costs of forfeiture and shall be paid by the county collector from any moneys in the county collector's possession derived from the payment of real property taxes.

(3) The receipts for the payment, verified by the certificate of the county clerk as to its correctness, shall entitle the county collector to a credit for the amount so paid.

26-37-108. [Repealed.]

&nbps;

26-37-109. Redemption of lands not transferred.

(a)(1) The county collectors of the various counties of the State of Arkansas are authorized to charge a fee of two dollars and fifty cents ($2.50) for the issuance of each certificate of land redemption for each parcel of tax-delinquent land redeemed in their office.

(2) This fee shall be deposited in the county general fund.

(b) Each county quorum court may authorize the county collector or the county treasurer to accept payment for the redemption of tax-delinquent land which has not been transferred to the Commissioner of State Lands.

(c) The county collector shall pay over to the county treasurer on the first of each month or within five (5) days thereafter all amounts collected under this section. However, upon a certificate of distribution of the amounts collected under this section being prepared by the county clerk or collector, which certificate shall be issued on or before the thirtieth day of each month, the county treasurer will transfer to the various funds the amount due each fund, such as the county, school, or municipality fund, from the amounts collected under this section.

26-37-201. Publication of notice - Fee.

(a)(1) The Commissioner of State Lands shall publish a notice of sale of land upon which the ad valorem property taxes have not been paid in a newspaper having general circulation in the county where the land is located.

(2) The publication fee for the notice shall be the same as set forth in 26-37-107.

(b) The notice shall:

(1) Contain the assessed value of the land;

(2) Contain the amount of taxes, interest, penalties, and other costs due on the land;

(3)(A) Contain the name of the owner, the legal description, and parcel number of the land.

(B) A part or abbreviated legal description shall be sufficient in the notice if the name of the owner and parcel number are listed;

(4) Contain a list of all recorded liens against the land that are known to the Commissioner of State Lands; and

(5) Indicate that the land will be sold to the highest bidder if the bid is equal to at least the assessed value of the land as certified to the Commissioner of State Lands.

(c) The highest bidder shall pay all taxes, interest, penalties, and other costs.

26-37-202. Procedure to sell.

(a) Bidders may bid at the sale or mail their bid to the office of the Commissioner of State Lands. Bids shall be delivered at the appropriate place before the deadline established in the notice of sale.

(b) If no one bids at least the assessed value, the Commissioner may negotiate a sale. All negotiated sales shall have approval of the Attorney General of the State of Arkansas.

(c) The Commissioner shall conduct tax-delinquent sales in the county wherein the land is located, unless the Commissioner determines that there are not enough parcels of land to justify a sale in one (1) county only. In that case, the Commissioner may hold a tax-delinquent land sale in one (1) location and thereat sell land located in more than one (1) county if the counties wherein the lands are located are adjoining counties.

(d) The sales shall be conducted on the dates specified in the notices required by this subchapter.

(e) Unless the owners of record tender all taxes, penalties, interest, and costs due within thirty (30) days after the date of sale, a limited warranty deed will be issued by the Commissioner to the purchaser.

26-37-203. Conveyance to purchaser - Contest.

(a) If the tax-delinquent land is not redeemed within the thirty-day period, the Commissioner of State Lands shall issue a limited warranty deed to the land.

(b)(1) Except as provided in subdivisions (b)(2) and (3) of this section, all actions to contest the validity of the conveyance shall be brought within two (2) years after the date of the conveyance or thereafter be barred.

(2) A cause of action by a person suffering a mental incapacity, a minor, or a person serving in the United States armed forces during time of war during the two-year period shall be brought within two (2) years after the disability is removed, the minor reaches majority, or the person is released from active duty with the armed forces.

(3) An action to challenge the conveyance to a purchaser of land that was sold at a negotiated sale under 26-37-101 shall be brought within ninety (90) days after the date of the conveyance or thereafter be barred.

(c) No deed issued after January 1, 1987, by the Commissioner of State Lands shall be void or voidable on the ground that the county did not strictly comply with the laws governing tax-delinquent land if prior to the issuance of the deed the Commissioner of State Lands complied with the laws governing the disposition of tax-delinquent land.

(d) Nothing in this section shall prevent any taxpayer from attacking a deed issued by the Commissioner of State Lands on the ground that taxes have actually been paid.

26-37-204. Sales set aside.

(a) In the event the sale is set aside by legal action or if the land is proven to be nonexistent or double assessed, the purchaser shall be entitled to reimbursement of moneys paid.

(b) The Commissioner of State Lands shall have the authority to set aside any sale. In the event the Commissioner determines that a sale shall be set aside, the purchaser may be entitled to reimbursement of moneys paid to the Commissioner of State Lands.

(c) In cases where sales may be set aside by the Commissioner of State Lands or by legal action by the record owner or the heirs or assigns of the record owner, the record owner or the heirs or assigns of the record owner shall pay all back taxes, penalties, interest, and costs charged against the land.

26-37-205. Distribution of funds.

(a) All moneys collected by the Commissioner of State Lands from the sale or redemption of tax delinquent lands shall be distributed as follows:

(1)(A) First, to the Commissioner of State Lands, the penalties, the collection fees, the sale costs, and the other costs as prescribed by law.

(B) The sale costs shall include, but not be limited to, fees for title work;

(2) Second, to each county an amount equal to the taxes due plus interest and costs to the county as certified by the county collector, which amount shall be held in an escrow fund administered by and remitted to the counties within one (1) calendar year of their receipt by the Commissioner of State Lands; and

(3) Third, to be placed in another escrow fund administered by the Commissioner of State Lands, the remainder, if any.

(b) If no actions are brought within the time limits prescribed under this subchapter, the remaining funds, if any, shall be distributed by the Commissioner of State Lands as follows:

(1) Ten percent (10%) of the remaining funds up to a maximum amount of five hundred dollars ($500) shall be paid to the Commissioner of State Lands for the administration of the distribution of the funds;

(2)(A) After payment is made to the Commissioner of State Lands pursuant to subdivision (b)(1) of this section, the amount left in the remaining funds shall be paid to the former owners of the tax delinquent land.

(B)(i) "Former owner" means a person, partnership, corporation, or other legal entity capable of owning real property in the State of Arkansas and that holds record title to the real property on the date of sale by the Commissioner of State Lands.

(ii) "Former owner" does not include heirs or relations beyond the first degree of consanguinity.

(C)(i) A former owner must file an application with the Commissioner of State Lands requesting the release of the funds.

(ii) The application shall be provided by the Commissioner of State Lands and shall require proof of ownership of the tax delinquent land as well as proof of authority to act on behalf of the owner.

(iii) The application may require other information the Commissioner of State Lands deems necessary before the release of the funds.

(D)(i) The former owner shall release and relinquish all rights, title, and interests in and to the tax delinquent land.

(ii) The Commissioner of State Lands shall provide a release deed to the former owner to execute.

(E) In the event of any dispute, claim, or multiple claims of ownership or controversy regarding the release of the funds, the Commissioner of State Lands may require the party or parties to provide a court order to resolve the issues and to establish the party or parties entitled to the remaining funds.

(F) An agreement by a former owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of remaining funds, is enforceable only if the agreement:

(i) Is in writing;

(ii) Clearly sets forth the nature of the property and the services to be rendered;

(iii) Provides a fee of not more than ten percent (10%) of the recovery;

(iv) Is signed by the former owner; and

(v) States the value of the remaining funds before and after the fee or other compensation has been deducted.

(G)(i) An agreement covered by subdivision (b)(2)(F) of this section that provides for compensation that is unconscionable is unenforceable except by the former owner.

(ii) A former owner who has agreed to pay compensation that is unconscionable may maintain an action to reduce the compensation to a conscionable amount.

(iii) The court may award reasonable attorney's fees to a former owner that prevails in the action.

(H) Subdivision (b)(2)(G) of this section does not preclude a former owner from asserting that an agreement covered by subdivision (b)(2)(F) of this section is invalid on grounds other than unconscionable compensation.

(I)(i) The Commissioner of State Lands shall make all funds payable to the former owner.

(ii) No funds shall be made payable to any other person or entity other than the former owner without a court order directing the payment to the other person or entity.

(iii) No interest shall be paid to the former owner on the funds.

(J)(i) Anyone filing a claim or assisting with the filing of a claim that results in the erroneous payment of a claim is responsible for the repayment of all funds paid.

(ii) Any claim filed fraudulently is punishable as a Class D felony; and

(3)(A) Any funds placed in escrow prior to July 1, 2005, shall be held in escrow for five (5) years and at the end of the five-year period, if the funds have not been distributed, the escrow funds shall escheat to the county in which the property is located.

(B) Any funds placed in escrow on and after July 1, 2005, shall be held for three (3) years, and at the end of the three-year period, if the funds have not been distributed, the escrow funds shall escheat to the county in which the property is located.

(c) All funds distributed to each county by the Commissioner of State Lands from the redemption or sale of tax-delinquent lands, including any interest and costs, are to be distributed to the applicable taxing units where the delinquent land is located within the county in the manner and proportion that the taxes would have been distributed if they had been collected in the year due.

(d) All funds received by a county from the redemption of tax-delinquent land at the county level, including any penalty, interest, and costs, are to be distributed to the applicable taxing units where the delinquent land is located within the county in the manner and proportion that the taxes would have been distributed if they had been collected in the year due.

(e) This section shall be severable, and if any phrase, clause, sentence, or provision of this section is declared to be contrary to the laws of this state, the validity of the remainder of this section shall not be affected.

26-37-206. Void sales.

If the taxes charged on any land or lot, or part thereof, are regularly paid, and the land or lot erroneously returned delinquent and sold for taxes, the sale of the land or lot shall be void and the money paid by the purchaser at such a void sale shall be returned to him by the officer having the money in charge, on the order of the county court that the land was erroneously returned delinquent and sold for taxes.

26-37-207. Invalid donation by state.

If the title of any person holding lands by virtue of a donation deed from the state shall, for any cause, be determined to be invalid in any action brought by or against him at law or in equity, then such donor, his heirs, successors, and assigns, shall be entitled, in addition to all other available remedies, to a lien upon the lands for the amount of the taxes, penalty, and costs for which the lands were originally forfeited and sold, plus all taxes on the lands which have subsequently been paid by the purchaser, his heirs, successors, and assigns, together with all taxes and improvement district assessments which may have been paid on the lands following the donation, with interest on the amount paid for the lands and on the taxes and assessments from the respective dates of payment until repaid at the rate of six percent (6%) per annum. The court rendering judgment or decree against the validity of the donation shall declare and enforce the lien.

26-37-208. Wrong name in tax book.

No sale of any land or lot for delinquent taxes shall be considered invalid on account of its having been charged on the tax book in any other name than that of the rightful owner if the land or lot is, in other respects, sufficiently described on the tax books and the taxes for which the land or lot is sold are due and unpaid at the time of the sale.

26-37-209. Compensation for improvements.

(a)(1) Except as provided in subdivision (a)(2) of this section, no purchaser of any land or town lot or city lot nor any person claiming under him or her shall be entitled to any compensation for any improvement that he or she shall make on the land or town lot or city lot within two (2) years from and after the sale of the land or town lot or city lot.

(2) No purchaser of land that was sold at a negotiated sale under 26-37-101 shall be entitled to any compensation for any improvement that he or she makes to the land within ninety (90) days after the date of the sale.

(b)(1) Except as provided in subdivision (b)(2) of this section for an improvement made after two (2) years from the date of sale, the purchaser shall be allowed the full cash value of the improvement, and the allowance shall be a charge upon the land.

(2) For an improvement made after ninety (90) days from the date of sale to a subdivided lot that was purchased at a negotiated sale under 26-37-202(b), the purchaser shall be allowed the full cash value of the improvement, and the allowance shall be a charge upon the land.

26-37-210. Sale of timber, oil, gas, or mineral rights.

When and wherever timber, oil, gas, or mineral rights are owned or assessed separate from the fee in the land and the taxes are not paid, the taxes shall be treated as taxes on land or real estate, subject to all tax laws now in force or which may hereafter be passed governing the forfeiture and sale of other real estate, and all such timber, gas, oil, or mineral rights when forfeited and certified to the Commissioner of State Lands shall be subject to sale at the price and as provided in Acts 1929, No. 129, 4, as amended, [superseded] for the sale of town and city lots.

26-37-211. Purchaser of timber rights.

The sale of timber rights for delinquent taxes shall vest the purchaser with whatever right to enter, cut, and remove the timber that was possessed by the former owner.

26-37-212. Dedication of land as public park.

Where the owners of a tract of land dedicate it to the city in which the land is located for park purposes by a filed and recorded plat and bill of assurance, if there are any delinquent general taxes of the state, county, city, etc., against the property, then it shall be the duty of the Commissioner of State Lands and of the proper county officials of the county where the land lies, on showing that title to the land has been dedicated to the public as a public park, to cancel any delinquent general taxes.

26-37-213. Record of lands forfeited.

(a) The Commissioner of State Lands shall keep a permanent record of all lands forfeited to the state for taxes and note in the record in whose name the forfeited land was listed, for what year or years it was taxed, the amount of tax due thereon, and when forfeited.

(b) The record shall be open to the inspection of anyone.

26-37-214. Limitation on liability.

Except as provided in 26-37-204(a) and (b), the Commissioner of State Lands as well as the county from which the property is certified shall be immune from liability for damages, costs, fees, or compensation for improvements made to the property arising from the sale of tax delinquent property even if the sale is found to be invalid or void as a result of error by the Commissioner of State Lands or the county.

26-37-301. Notice to owner.

(a)(1) Subsequent to receiving tax-delinquent land, the Commissioner of State Lands shall notify the owner, at the owner's last known address, by certified mail, of the owner's right to redeem by paying all taxes, penalties, interest, and costs, including the cost of the notice.

(2) All interested parties known to the Commissioner of State Lands shall receive notice of the sale from the Commissioner of State Lands in the same manner.

(b)(1) The notice to the owner or interested party shall also indicate that the tax-delinquent land will be sold if not redeemed prior to the date of sale.

(2) The notice shall also indicate the sale date, and that date shall be no earlier than two (2) years after the land is certified to the Commissioner of State Lands.

(c) As used in this section, "owner" and "interested party" mean any person, firm, corporation, or partnership holding title to or an interest in the property by virtue of a bona fide recorded instrument at the time of certification to the Commissioner of State Lands.

(d) The Commissioner of State Lands shall not be required to notify, by certified mail or by any other means, any person, firm, corporation, or partnership whose title to or interest in the property is obtained subsequent to certification to the Commissioner of State Lands.

(e)(1) If the Commissioner of State Lands fails to receive proof that the notice sent by certified mail under this section was received by the owner of a homestead, as defined under 26-26-1118(b), then the Commissioner of State Lands or his or her designee shall provide actual notice to the owner of a homestead, as defined under 26-26-1118(b), by personal service of process at least sixty (60) days before the date of sale.

(2) As used in this subsection, "owner of a homestead" means:

(A) Every owner if the homestead is owned by joint tenants; and

(B) Either the husband or the wife if the homestead is owned by tenants by the entirety.

(3) The owner of a homestead shall pay for the additional cost of the notice by personal service of process under this subsection.

26-37-302. Payment required.

(a) In order to redeem, whether with the county collector or the Commissioner of State Lands, and in order to purchase at the Commissioner's sale, the redeemer or purchaser of tax-delinquent land shall pay all delinquent taxes, plus:

(1) Ten percent (10%) simple interest for each year of delinquency;

(2) A ten percent (10%) penalty for each year of the delinquency; and

(3) The costs incurred by the county and the Commissioner of State Lands.

(b) The penalties and interest shall accrue beginning on October 11 in the year of delinquency.

26-37-303. Redemption deed.

(a) If the owner redeems the tax-delinquent land, the Commissioner of State Lands shall issue a redemption deed and record it in the county wherein the land is located.

(b) The fee for the redemption deed and the fee for recording the deed shall be borne by the owner.

26-37-304. [Repealed.]

26-37-305. Rights of persons under disability.

(a) All land or a city lot or town lot belonging to an insane person, minor person, or person in confinement that is sold for taxes may be redeemed within two (2) years after the expiration of the person's disability.

(b)(1) In redemption of any land described in subsection (a) of this section by any person after the expiration of a disability described in subsection (a) of this section, the purchaser shall be required to account for all timber, gas, oil, or mineral substance taken from the land while holding under the tax title and protect the rights of any person under disability as provided in this section.

(2)(A) A person desiring to take any timber, gas, oil, or mineral substance from any land held under tax title within ten (10) years after the sale for taxes shall first execute a bond in sufficient amount to cover the substance to be removed, with good and sufficient sureties, conditioned that the holder of the land will pay for all substances removed from the land if the land is redeemed under the provisions of this section.

(B) The bond shall be filed with and approved by the clerk of the county court in the county where the land is located.

(c)(1) Any person removing timber, gas, oil, or a mineral substance from any land contrary to the provisions of this section and without first executing the bond provided for in this section shall be guilty of a violation and shall be fined in any sum not less than twenty-five dollars ($25.00) and not more than double the amount of the substance removed.

(2) A person may remove timber from land cleared in good faith for cultivation without becoming liable to the penalty provided in this section.

(d)(1) The county clerk shall keep a record of all certificates of redemption of lands or city lots or town lots, or parts of lands or city lots or town lots, which were sold for delinquent taxes and redeemed and shall retain the record of them for ten (10) years from the date on which the redemption certificates were issued.

(2) Thereafter, unless a court order shall have been issued with respect to any such redemption certificate, the county clerk may destroy the record.

26-37-306. Procedure for redemption by persons under disability.

(a) All lands and town or city lots, or parts thereof, which have been or may hereafter be forfeited to the state for nonpayment of taxes, which belong to minors, persons of unsound mind, and persons in confinement at the date of forfeiture, may be redeemed by such persons by application to the Commissioner of State Lands within the limitation prescribed by law and upon the terms and in the manner provided by law.

(b)(1) Persons of the class mentioned in subsection (a) of this section may, by themselves or by their guardians or next friend, present their petition to the Commissioner, setting forth the evidence of their title at the date of forfeiture and their right to redeem under this section and the facts set forth shall be sworn to by the petitioner.

(2) The oath shall be attested by the clerk of the circuit court of the county, or some notary public of the county and state in which the petitioner resides or before the Commissioner.

(c) The Commissioner may require other evidence than the petition to establish the facts therein set forth, and the petitioner may take proof by affidavit or otherwise as the Commissioner may prescribe.

(d)(1) If the Commissioner finds the facts set forth in the petition to be true, he shall cancel the forfeiture on his books and issue his certificate to the party redeeming the land or lot, setting forth the fact that the land or lot has been duly and legally redeemed by the payment of all taxes, penalties, and costs due thereon.

(2) Upon the presentation of the certificate to the clerk of the county in which the lands lie, the clerk shall mark on his record of lands forfeited to the state opposite to the tract described in the certificate the words "redeemed before the Commissioner of State Lands" and the time when so redeemed.

(e) The assignees of the persons mentioned in subsection (a) of this section shall have two (2) years after they shall have acquired title to redeem the lands or town or city lots, and under the same provisions and restrictions that their assignors had. In no case shall they have a longer time in which to redeem than the assignor had at the time of sale.

(f) The provisions of this section shall not apply to any land or town or city lots that have been in anywise disposed of by the state prior to the filing in the office of the Commissioner a petition for redemption.

26-37-307. Joint tenant, tenant in common, or coparcener.

When any joint tenants, tenants in common, or coparceners shall be entitled to redeem any land or lot, or part thereof, sold for taxes and any person so entitled shall refuse or neglect to join in the application for the certificate of redemption, or from any cause cannot be joined in the application, the clerk of the county court may entertain the application of any one (1) of these persons, or as many as shall join therein, and may make a certificate for the redemption of such portion of the land or lot, or part thereof, as the person making the application shall be entitled to redeem.

26-37-308. Portion of tract of land.

(a)(1) When a portion of a tract of land sold for general taxes or for any improvement district taxes extended by the county clerk on the county tax books is claimed by any person who desires to redeem the land, the person may apply to the county assessor setting forth in writing his or her claim to the land and demanding that the county assessor make a separate assessment upon the tract of land described by the claimant, showing what portion of the general taxes or of the local improvement taxes for which the land is forfeited is properly applicable to the portion of the land sought to be redeemed.

(2)(A)(i) Within two (2) weeks after the application is filed with the county assessor, the county assessor shall file with the county clerk a certificate in which he or she shall justly apportion the delinquent general or local improvement taxes between the portion of the land described in the demand of the complainant and the remaining portion of the land.

(ii) For the county assessor's services the claimant shall pay the county assessor the sum of one dollar ($1.00).

(B) If the county assessor fails to file his or her certificate within the time prescribed he or she shall be subject to a penalty of twenty-five dollars ($25.00).

(b)(1) The certificates shall be recorded by the county clerk in a book to be kept by him or her called the tax apportionment book, and the clerk shall write opposite the description of the lands in the assessment books or local improvement assessment books the words, "See Tax Apportionment Book."

(2) For each case in which the county clerk fails to do so, the county clerk shall be subject to a penalty of twenty-five dollars ($25.00).

(c)(1)(A) At any time before the expiration of the period for redemption of the land and upon paying to the proper officer the sum necessary to redeem the portion of land claimed by the person, any person interested in the land, either as the purchaser at the sale for general or local improvement taxes or claiming the remaining portion of the land, or any part of the land, may file suit in the circuit court to review the justness of the apportionment made by the county assessor.

(B) If the plaintiff prevails in his suit, the circuit court shall make a decree charging the land of the defendant with the excess of taxes paid by the plaintiff, which charge shall be the first lien on the land.

(2)(A) If the first redemption is made less than three (3) months before the expiration of the period of redemption, a remaining party interested in the land shall have a period of three (3) months from the time of the redemption in which to bring the suit provided for in this section.

(B) However, the three-month period shall not extend their time for redeeming.

(d)(1) The assessing officers of any improvement district may make a reassessment of the benefits annually.

(2) In any such reassessment the assessing officers may correct defective descriptions.

(3)(A) When a tract of land has been assessed as a whole, the tract may be divided according to its ownership at the time of the reassessment.

(B) This reassessment shall be made, advertised, and equalized in the same manner, and only subject to attack within the same period of time, as the original assessment of benefits.

26-37-309. Uncertified sales to state.

(a) Any land sold to the state for the nonpayment of taxes since the year 1908 or thereafter, which sale has never been certified to the Commissioner of State Lands, may be redeemed by the person, firm, or corporation holding the lands under color of title by filing with the Commissioner a certificate from the clerk of the county in which the lands are situated, showing the sale of the land, the amount of taxes, penalty, and cost due thereon, if any, and the payment thereof and making a sworn statement in writing that he is the holder of the lands as aforesaid and entitled to redeem them.

(b) Upon compliance with subsection (a) of this section, the Commissioner shall issue to the person, firm, or corporation a quitclaim deed to the land, conveying to the person, firm, or corporation, as the case may be, all claim, right, and title the state acquired by the sale. The Commissioner shall make a record of the sale and of the issuance of the deed in a book kept by him for that purpose, showing the sale to the state, the date of the deed, to whom issued, and the description of the lands. The Commissioner shall file and preserve all of the original papers in connection with the redemption in his office. The papers and record shall be open at all times to public inspection.

26-37-310. Procedure for redeeming land certified to state.

(a) All lands or town and city lots sold to the state under any decree or other proceedings had under the provisions of an act entitled "An act to enforce the payment of overdue taxes," Acts 1881, No. 39, approved March 12, 1881 [repealed], and now owned by the state and all lands or town and city lots forfeited and sold to the state for nonpayment of taxes and certified to the Commissioner of State Lands which have not been sold or otherwise disposed of by the state, or which may hereafter be sold and forfeited to the state, and certified as aforesaid, may, until disposed of by the state, be redeemed by the person owning the land or lot at the time of forfeiture, or by his heirs or assigns, in the manner provided by subsections (b), (c), and (d) of this section.

(b) Any person, or his agent or attorney, desiring to redeem any land or town or city lots under the provisions of this section shall first pay to the Treasurer of State an amount or sum of money equal to the taxes for which the land or town or city lots desired to be redeemed were sold, together with penalties and costs and all expenses paid by the state in acquiring title to the land or town or city lots under such forfeiture for taxes and all state and county taxes that would have subsequently accrued thereon had they remained on the tax books subject to taxation.

(c) The Commissioner, upon application by any person desiring to redeem any lands or town or city lots under this section, shall furnish the person a statement, showing the amount of money that will be required to be paid to the State Treasurer under subsection (b) of this section for the redemption of the lands or town or city lots sought to be redeemed.

(d) Before any person shall be permitted to redeem any lands or town or city lots mentioned in subsection (a) of this section, the person, or his agent or attorney, shall present and file with the Commissioner a verified petition stating that they, or the parties under whom they hold, owned the lands or town or city lots desired to be redeemed at the time they were forfeited for taxes. They shall also file with the petition a receipt, in duplicate, from the State Treasurer showing the payment of the amount of money necessary to redeem the lands or town or city lots sought to be redeemed as required by subsection (b) of this section.

(e) The Commissioner may require other evidence than the petition to establish the facts therein set forth, and the petitioner may take proof by affidavit or otherwise as the Commissioner may direct.

(f) If the Commissioner finds the facts set forth in the petition to be true and that the amount of money necessary to redeem the lands sought to be redeemed has been paid to the State Treasurer as required by subsection (b) of this section, he shall, by deed of release and quitclaim under his hand and official seal, convey to the person redeeming the lands or town or city lots all of the right, title, and interest of the state in and to the lands or town or city lots acquired under any forfeiture, sale, or condemnation for taxes. For this deed, the Commissioner shall receive one dollar ($1.00), to be paid by the party applying to redeem the lands or lots.

(g) The Commissioner shall file with the Auditor of State one (1) of the receipts executed by the State Treasurer and presented with the petition required by subsection (d) of this section and shall keep the other receipt on file in his office. The Commissioner shall forward a copy of the deed executed by him under subsection (f) of this section to the clerk of the county court of the county in which the land or lot conveyed by the deed is situated.

(h) After the reception of the deed of the Commissioner, the clerk shall extend on the tax book against the land or lot the taxes other than state and county for the years that the taxes have not been paid since the sale of the land or lot to the state, and these taxes shall be charged and collected as other taxes.

(i) The proceeds of all redemptions of forfeited lands which may hereafter be made under subsections (a)-(e) of this section shall be divided equally between the county where the lands are situated and the state, and paid over in the manner as required and provided in this section.

26-37-311. Proceedings to redeem prior to sale by state.

(a) At any time before the lands referred to in this section have been sold by the state, the owners thereof may present their petition to the Commissioner of State Lands, setting forth the evidence of their title, or of those under whom they claim, to the lands, at the time of the sale of the lands to the state as stated in this section. The petition shall set forth the evidence of the taxes having been paid on the lands before such sale to the state, for the years for the alleged nonpayment of which taxes the lands were sold to the state under any proceedings or decrees rendered under laws to enforce the payment of overdue taxes, and the facts set forth shall be sworn to by the petitioner and such oath shall be attested by the clerk of the circuit court of the county, or some notary public of the county and state in which such petitioner resides, or before the Commissioner.

(b) The Commissioner may require other evidence than the petition to establish the facts therein set forth, and the petitioner may take proof by affidavit or otherwise as the Commissioner may prescribe.

(c) If the Commissioner finds the facts set forth in the petition to be true and that the taxes on the lands had been paid by the present owners of the lands, or by those under whom they claim the lands, for the years they were sold to the state, and before they were sold to the state, he shall, by deed of release and quitclaim under his hand and official seal, convey to the owner of the lands all of the rights, title, and interest of the state in and to the lands acquired under any sale or other proceedings under provisions of an act to enforce the payment of overdue taxes, Acts 1881, No. 39, approved March 12, 1881. A copy of the deed shall also be sent by the Commissioner to the clerk of the county court of the county.

(d) After the reception of the deed from the Commissioner to the clerk, the clerk shall extend on the tax books against the lands the taxes for the years that the taxes have not been paid since the erroneous sale of the lands to the state under the overdue tax law. The taxes that have not been paid on the lands since the sale to the state shall be charged and collected as in other cases of lands of the state where the Commissioner has officially advised the clerk they have become subject to taxation.

26-37-312. Reassessment of unimproved land in municipality.

(a) When an acreage tract of unimproved land, that is, land with no residence or other building on it, located in any incorporated municipality is in default to this state for nonpayment of taxes and when the owner of the acreage tract of unimproved land applies to the county assessor of the county where the acreage tract of unimproved land is located for reassessment, it shall be the duty of the county assessor to determine what would have been a fair assessment for the year for which the acreage tract of unimproved land forfeited.

(b)(1) In determining the amount at which the acreage tract of unimproved land should have been assessed, the county assessor should take into consideration how the acreage tract of unimproved land lies.

(2) If the value of the acreage tract of unimproved land is being considered as to its probability or possibility of being platted and sold off in lots or blocks, then due allowance should be made for the land that will be required for streets and alleys.

(3) In arriving at the valuation for reassessment purposes on the acreage tract of unimproved land, the county assessor shall take into consideration the assessed value of platted vacant lots in adjoining or nearby platted subdivisions.

(4) If the property that is platted into lots is served with water, lights, gas, and telephone lines, when there is no improvement district tax on the platted lots for those utility services, then that also should be taken into consideration.

(5) When compared with platted lots, if the streets serving the lots are paved and the paving tax is paid out, or nearly paid out, that, likewise, should be taken into consideration in determining the amount at which the acreage tract of unimproved land should have been assessed.

(c)(1)(A) If the county assessor finds that the acreage tract of unimproved land was valued on county assessor's records too high at the time it forfeited to the state, the county assessor shall make a written report to that effect to the Commissioner of State Lands and state what a fair and equitable assessed value should have been.

(B) It shall then be the duty of the Commissioner of State Lands to make reduction in the amount of taxes in accordance with the report of the county assessor.

(2) Any interested landowner may appeal to the circuit court for review of the findings of the county assessor.

(d)(1) If reduction in the amount of taxes against the acreage tract of unimproved land is made by the Commissioner of State Lands on the report of the county assessor or upon finding of the circuit court upon appeal from the county assessor's findings, then the Commissioner of State Lands shall allow the landowner to redeem the acreage tract of unimproved land or sell the acreage tract of unimproved land as provided by law, based on the corrected amount of taxes due.

(2) When the acreage tract of unimproved land, at the time it forfeited to the state for taxes, was assessed as one (1) tract but when it is now owned by two (2) or more owners, on petition to the Commissioner of State Lands of one (1) or more of the landowners, as shown by certificate of abstractor, the Commissioner of State Lands shall prorate the proportionate part of the reassessment against the respective parts of the acreage tract of unimproved land and the Commissioner of State Lands shall determine the amount of delinquent taxes to be charged against each part of the acreage tract of unimproved land and mark his or her records accordingly.

(3) Each part of the acreage tract of unimproved land may then be redeemed by the owner, the amount necessary to redeem being based on the corrected assessment and apportionment.

(4) If any portion of the acreage tract of unimproved land remains unredeemed for a period of ninety (90) days after the apportionment is made, the Commissioner of State Lands may then sell any portion of the acreage tract of unimproved land as remains unredeemed, or may sell the portion prior to the expiration of the ninety-day period with the consent of the owner.

26-37-313. Reassessment of parcels of land upon depreciation since forfeiture.

(a)(1) Town and city lots and blocks and acreage tracts, lots, blocks, divisions, and subdivisions that have been platted and sold as being outside of the corporate limits of towns and cities, and rural lots and parcels of land now, or which may hereafter be, forfeited to the state for nonpayment of taxes due thereon that have depreciated in value since forfeiture may be reassessed at their present value by the tax assessor of the county in which the lands are located, upon application being made in writing by the application to redeem or purchase them, setting forth the reasons for the reassessment. No application shall contain more than five (5) descriptive calls. Before any such reassessment shall be valid, it shall be presented to the county judge and the chief county school officer of the county in which the lands are located and approved by them in writing and made a matter of record in the county by the clerk of the county court.

(2) The fee of the assessor shall be one dollar ($1.00) for each application. The fee shall be paid to the county treasurer and credited by him to the county general revenue fund. The fee of the county clerk shall be the regular fee allowed by law and shall be paid by the applicant seeking reassessment.

(b)(1) If the tax assessor deems the assessment for which parcels of land were forfeited to be too high, he shall prepare a certificate stating that a reassessment has been made under this section and shall state, under oath, the cause for the depreciation in the value of the lots or parcels of land.

(2) The assessor, the county judge, and the chief county school officer are prohibited from making any such reassessment as set out in this section except for the following causes:

(A) Burned buildings not replaced and on which the applicant did not collect insurance;

(B) Buildings removed and from which the applicant received no benefit;

(C) Erosion;

(D) Damage by flood;

(E) Damage by tornado;

(F) Removal of timber from which the applicant received no benefit; or

(G) Any act of God.

(3) When the reassessment has been made, a complete record thereof, including a certified copy of the application, the reassessment, and the court order, shall be forwarded to the Commissioner of State Lands, who shall, upon its receipt, enter it upon a record to be kept by him in his office for that purpose, and he shall issue redemption deeds or sale deeds for forfeited lands in the manner and form provided by law, based upon the reassessment value.

26-37-314. Sale of tax delinquent severed mineral interests prohibited.

(a)(1) When severed mineral interests are forfeited to the state and conveyed by certification to the Commissioner of State Lands for nonpayment of property taxes, title to the severed mineral interests shall vest in the State of Arkansas in the care of the Commissioner of State Lands.

(2) The Commissioner of State Lands shall so notify the owner of record by certified mail at his or her last known address.

(3)(A) Except as provided in subsection (b) of this section, the Commissioner of State Lands shall not sell the severed mineral interests but shall retain the severed mineral interests indefinitely for redemption.

(B) However, the severed mineral interests may be leased by the Commissioner of State Lands if he or she determines that a lease is in the best interest of the state.

(C) All benefits, including royalty and leasehold payments, accruing after title vests in the state and before redemption shall be payable to the Commissioner of State Lands.

(D) Upon receipt of any such benefits, the Commissioner of State Lands shall deposit the funds into financial institutions in this state.

(4)(A) The tax-delinquent severed mineral interests may be redeemed at any time in the manner prescribed for the redemption of tax-delinquent real property.

(B) However, upon redemption the owner shall not be entitled to any payments received by the Commissioner of State Lands before redemption.

(5) All funds derived from redemption shall be held in escrow by the Commissioner of State Lands for one (1) year, at which time they shall be distributed the same as funds derived from the redemption of real property.

(b)(1) After the expiration of the redemption period prescribed by this subchapter, the Commissioner of State Lands shall sell the severed mineral interests to the surface owners if the surface owners opt to purchase the tax-delinquent severed mineral interests.

(2) The surface owner purchasing severed mineral interests under subdivision (b)(1) of this section shall be allowed to purchase the severed mineral interests for an amount equal to the delinquent taxes and shall not be required to pay any interest or penalties if the surface owner was not the owner of the severed mineral interests at the time the taxes became delinquent.

(c) All benefits, including royalty and leasehold payments, payable to the Commissioner of State Lands pursuant to this section are not subject to the provisions of 18-28-201 et seq. and 18-28-401 et seq.

(d) The provisions of this section shall be applicable to all tax-delinquent severed mineral interests currently forfeited to the state and certified to the Commissioner of State Lands as well as to all tax-delinquent severed mineral interests forfeited to the state in the future.

(e)(1) No deed issued under this section shall be void or voidable on the ground that the assessment of the property taxes on the severed mineral interests was not subjoined to the assessment of the property taxes on the surface realty.

(2) This subsection shall be retroactive to all certifications of delinquent severed mineral interests in the records of the office of the Commissioner of State Lands.

26-37-315. Redemption of homestead by taxpayer.

If a taxpayer did not receive actual notice of the sale of his or her homestead, as defined under 26-26-1118(b), by the Commissioner of State Lands or his or her designee by personal service of process at least sixty (60) days before the date of the sale, then the taxpayer may redeem the tax-delinquent land by tendering all taxes, penalties, interests, and costs within thirty (30) days after the date of the sale.

26-37-316. Notice requirement.

When a homestead, as defined under 26-26-1118(b), is certified to the Commissioner of State Lands, the county collector shall provide notice to the Commissioner of State Lands that the property is a homestead.

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