HOT SPRINGS, Ark. — Garland County property owners are opening reappraisal notices showing sharp increases in market value — in some cases 40% to 50% or more — but a state constitutional cap means most owners’ actual tax bills will climb far more slowly than the letters suggest.
2026 is a countywide reappraisal year for Garland County, a process state law requires every three to five years. Notices of value changes began arriving earlier this month, with a second round mailed July 15 to property owners whose assessments changed. County Assessor Shannon Sharp said this year’s letters have generated more questions from residents than usual.
The confusion is understandable. County records for one Garland County home reviewed by Arkansas Breaking News show its estimated market value jumping from $927,200 to $1,336,900 in this year’s reappraisal — a 44% increase in a single cycle.
But the number on the notice is not the number your taxes are calculated from.
The cap: 5% for homesteads, 10% for everything else
Under Amendment 79 to the Arkansas Constitution, the taxable assessed value of a homestead — a property owner’s principal residence — can increase no more than 5% per year, regardless of how much the market value rises. All other real property, including second homes, rentals and commercial property, is capped at 10% per year. The capped value continues rising annually until it reaches 20% of the appraised market value, which is the standard assessment ratio in Arkansas.
That means a home whose market value jumped 40% will see its taxable value climb in capped annual steps, not all at once.
What that looks like on a real tax record
The records for the home Arkansas Breaking News reviewed — which is not a homestead, putting it under the 10% cap — show exactly how the system works across two reappraisal cycles.
In the 2022 reappraisal, the property’s total value jumped from $716,450 to $927,200, a 29% increase. But its taxable assessed value did not jump 29%. It stepped up in capped annual increments — from $143,290 in 2021 to $157,619 in 2022, $171,948 in 2023 — before finally catching up to the full assessed value of $185,440 in 2024, two years after the reappraisal.
This year, the same pattern is starting over. The 2026 reappraisal pushed the property’s market value up 44%, to $1,336,900, with a full assessed value of $267,380. But the taxable value for 2026 is $203,984 — exactly 10% above last year’s figure. If values hold, the taxable amount will keep climbing about 10% a year until it reaches the full assessed figure around 2029.
Put another way: the cap spreads the increase out, but it does not erase it. Since 2021, the property’s market value on the county’s books has risen 87%, and the tax bill will eventually reflect all of it. For homesteads under the 5% cap, the catch-up period is even longer.
The jumps are not limited to residential property. Among commercial properties reviewed by Arkansas Breaking News, three downtown Hot Springs buildings rose 34%, 50% and 57% respectively — one climbing from $2,146,700 to $3,367,000 — and the DoubleTree Hotel property on Central Avenue posted the largest dollar increase of any property reviewed, jumping nearly 42%, from $15,073,600 to $21,391,800 — an increase of more than $6.3 million in appraised value.
The increases are not uniform: a boat marina rose about 28%, from $4,500,550 to $5,758,300, and the Fisherman’s Wharf restaurant property on Lake Hamilton rose a comparatively modest 15%, from $1,711,250 to $1,971,000. But the overall pattern in the properties Arkansas Breaking News reviewed is clear — major commercial and hospitality properties are seeing some of the steepest revaluations in the county, in many cases outpacing residential increases.
Commercial property falls under the same 10% annual cap on taxable value as other non-homestead real estate, meaning tax bills on those buildings will climb steadily toward the new figures over the next several years.
The caps do not apply to new construction, major remodels or changes in property use, which are assessed at full value.
Some bills will actually go down
Two other factors are working in homeowners’ favor this year. The state homestead property tax credit increased from $600 in 2025 to $675 for 2026, offsetting some or all of the capped increase for many owners. Sharp said some residents whose market values rose will actually owe less than they paid this spring.
Property owners 65 and older may also qualify to freeze the assessed value of their principal residence entirely. Applications are handled through the assessor’s office at 501-622-3730.
Millage rates set by school districts, cities and the county still determine the final bill, and a millage increase could raise taxes independent of the reappraisal. School districts receive the large majority of property tax proceeds in Garland County.
How to appeal
Property owners who believe their new value is wrong have until Monday, Aug. 17 — the third Monday in August — to request a hearing before the Garland County Equalization Board. Appointments are scheduled through the county clerk’s office at 501-622-3610.
Before filing a formal appeal, Sharp recommends calling Arkansas CAMA Technology at 501-623-2030. The company conducts the county’s mass appraisals and can often resolve disputes — such as incorrect square footage, acreage or property condition — without a hearing.
Owners appealing should bring documentation supporting a different value: a recent fee appraisal, sales of comparable homes in the neighborhood, or photos showing condition issues the mass appraisal missed.
If the Equalization Board denies an appeal, owners can take the matter to county court and then circuit court.
Updated property values are available at actdatascout.com.
Editor’s note: The property values cited in this story were pulled from Garland County assessment records in July 2026. Figures may change as property owners appeal their valuations through the Equalization Board process, which runs through Aug. 17.
