Owning vacant land in Arkansas can seem like a low-cost investment — until the annual property tax bill arrives.
Introduction
Owning vacant land in Arkansas can seem like a low-cost investment — until the annual property tax bill arrives. For many owners, especially those with land they don’t plan to use, these taxes become a frustrating and never-ending expense.
In this guide, we’ll break down how property taxes on vacant land work in Arkansas, what you can expect to pay, and how to reduce or eliminate the burden.
How Property Taxes Are Calculated in Arkansas
Property taxes are based on:
- Assessed Value – In Arkansas, land is assessed at 20% of its market value.
- Millage Rate – This is the tax rate applied per $1,000 of assessed value. Rates vary by county and local district.
- Special Assessments – Some subdivisions include SID (Special Improvement District) or HOA fees in addition to property taxes.
Example:
- Market value of land = $5,000
- Assessed value = $1,000 (20%)
- Local millage rate = 50 mills (or 0.05)
- Tax bill = $50
It sounds small — but if you own multiple lots, or forget to pay, penalties add up fast.
What Happens If You Don’t Pay
- Penalties and Interest: Added monthly until paid.
- Certified to the Commissioner of State Lands: After 2 years of unpaid taxes, the property is turned over to the state.
- Tax Auction: If still unpaid, your land is sold at public auction.
Once sold, you lose the property — and usually get nothing in return.
How to Reduce Property Taxes on Vacant Land
1. Verify the Assessed Value
Counties sometimes overvalue land. You can appeal the valuation with your county assessor if you believe it’s too high.
2. Check for Exemptions
Some agricultural or timber land may qualify for reduced assessments.
3. Combine Lots
If you own multiple small lots, some counties allow you to merge them into one parcel, which can reduce duplicate tax bills.
4. Sell the Land Before Taxes Pile Up
If you no longer want the land, selling can eliminate the ongoing tax burden. Companies like Shamrock Lands buy land with back taxes and pay them off at closing.
Why Selling May Be the Best Option
Holding vacant land that you don’t use often costs more than it earns. Even $50–$200 per year adds up to thousands over time.
If you’re tired of paying property taxes year after year, selling the land allows you to:
- Stop the ongoing expense
- Avoid tax auctions and penalties
- Walk away with cash instead of a bill
Conclusion
Property taxes on vacant land in Arkansas may seem small at first, but they add up — and unpaid balances can result in losing your land entirely. If you’re ready to stop paying for property you don’t want, Shamrock Lands can help. We buy land with or without back taxes and cover all closing costs.Contact Shamrock Lands Today
Website: www.shamrocklands.com
Email: damien@shamrocklands.com
Phone: 501-406-0051
