Constitution of Arkansas (2025 publisher edition) — Article 16

Publisher edition notice: This collection preserves the complete constitutional appendix of the Secretary of State’s 2025 Election Laws and Constitution compilation: its preamble, twenty original articles, schedule and 104 published amendments, including annotations and explicit repealed notices. Repealed notices remain historical publisher context. Later amendments have not been independently verified.

Article 16

ARTICLE 16
F INANCE AND TAXATION
SECTION .
1. Lending credit — Bond issues — Interest-bearing
warrants.
2. Debts of state — Payment.
3. Making profit out of or misusing public funds —
Penalty.
4. Salaries and fees of state officers.
5. Property taxed according to value — Procedures for
valuation — Tax exemptions.
6. Other tax exemptions forbidden.
7. Taxation of corporate property.
8. Maximum rate of state taxes.
SECTION .
9. County taxes — Limitation.
10. Payment of county and municipal taxes.
11. Levy and appropriation of taxes.
12. Disbursement of funds — Appropriation required.
13. Illegal exactions.
14. Procedure for adjustment of taxes after reappraisal or
reassessment of property.
15. Assessment of residential property and agricultural,
pasture, timber, residential and commercial land.
16. Providing for exemption of value of residence of per-
son 65 or over.
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§ 1. Lending credit — Bond issues — Interest-bearing warrants.
Neither the State nor any city, county, town or other municipality in this State shall ever lend
its credit for any purpose whatever; nor shall any county, city or town or municipality ever issue
any interest bearing evidences of indebtedness, except such bonds as may be authorized by law
to provide for and secure the payment of the indebtedness existing at the time of the adoption of
the Constitution of 1874, and the State shall never issue any interest-bearing treasury warrants
or scrip. [As amended in 1918 — see Publisher’s Notes.]
Publisher’s Notes. An amendment approved in 1918
and declared in effect after the decision in Brickhouse v.
Hill, 167 Ark. 513, 268 S.W. 865 (1925), made minor
changes in the original section and added paragraphs
authorizing bond issues for certain purposes in incorpo-
rated towns of 1,000 or more population and cities of the
first and second class. For full text of the amendment, see
Acts 1925, p. 1123.
The 1918 amendment was deemed superseded by a 1926
amendment, which is currently numbered as Ark. Const.
Amend. 13 (See Acts 1927, p. 1210); the 1918 amendment
does not appear in prior digests and compilations and is
not included in the amendments to which the Secretary of
State has assigned numbers.
Ark. Const. Amend. 13 essentially incorporated the first
paragraph of the then-existing section and rewrote or
deleted the additional paragraphs. However, Ark. Const.
Amend. 62, § 11, repealed Ark. Const. Amend. 13. The
Arkansas Supreme Court held, in City of Hot Springs v.
Creviston, 288 Ark. 286, 713 S.W.2d 230 (1986), that Ark.
Const. Amend. 62 was intended to repeal only language
added to this section by Ark. Const. Amend. 13, which the
court interpreted as meaning only the 11 paragraphs
added by the amendment, but not the pre-existing first
paragraph; however, the opinion makes no mention of the
changes or additions made by the 1918 amendment. The
section appears above as originally enacted in the 1874
Constitution but incorporates the changes made in the
paragraph by the 1918 amendment.
The 1918 amendment made minor punctuation changes
and substituted “the indebtedness existing at the time of
the adoption of the Constitution of 1874” for “the present
existing indebtedness.”
With respect to issuance of bonds, this section may be
superseded by Ark. Const. Amends. 62 and 65. See also
Ark. Const. Amend. 20.
§ 2. Debts of state — Payment.
The General Assembly shall, from time to time, provide for the payment of all just and legal
debts of the State.
§ 3. Making profit out of or misusing public funds — Penalty.
The making of profit out of public moneys, or using the same for any purpose not authorized by
law, by any officer of the State, or member or officer of the General Assembly, shall be punishable
as may be provided by law, but part of such punishment shall be disqualification to hold office in
this State for a period of five years.
§ 4. Salaries and fees of state officers.
Except as provided in Arkansas Constitution, Article 19, § 31, the General Assembly shall fix
the salaries and fees of all officers in the State; and no greater salary or fee than that fixed by law
shall be paid to any officer, employee, or other person, or at any rate other than par value; and
the number and salaries of the clerks and employees of the different departments of the State
shall be fixed by law. [As amended by Const. Amend. 94.]
Publisher’s Notes. Ark. Const. Amend. 94, which
amended this section effective November 5, 2014, was
proposed by H.J.R. 1009 during the 2013 Regular Session
and adopted at the November 2014 general election by a
vote of 428,206 for and 388,459 against. The amendment
added “Except as provided in Arkansas Constitution, Ar-
ticle 19, § 31” to the beginning of the section.
§ 5. Property taxed according to value — Procedures for valuation — Tax exemptions.
(a) All real and tangible personal property subject to taxation shall be taxed according to its
value, that value to be ascertained in such manner as the General Assembly shall direct, making
the same equal and uniform throughout the State. No one species of property for which a tax may
be collected shall be taxed higher than another species of property of equal value, except as
provided and authorized in Section 15 of this Article, and except as authorized in Section 14 of
this Article. The General Assembly, upon the approval thereof by a vote of not less than
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three-fourths (¾ths) of the members elected to each house, may establish the methods and
procedures for valuation of property for taxation purposes, but may not alter the method of
valuation set forth in Section 15 of this Article.
(b) The following property shall be exempt from taxation: public property used exclusively for
public purposes; churches used as such; cemeteries used exclusively as such; school buildings and
apparatus; libraries and grounds used exclusively for school purposes; and buildings and grounds
and materials used exclusively for public charity.
Nothing in this Section shall affect or repeal the provision of Amendment 57 to the Constitution
of the State of Arkansas pertaining to intangible personal property. [Added by Const. Amend. 59.]
Publisher’s Notes. Section 17 of Ark. Const. Amend. 59
repealed former Art. 16, § 5 and substituted the present
section therefor.
The provisions of this section relating to the assessment
and taxation of tangible personal property are superseded
by Ark. Const. Amend. 71.
§ 6. Other tax exemptions forbidden.
All laws exempting property from taxation, other than as provided in this Constitution shall be
void.
§ 7. Taxation of corporate property.
The power to tax corporations and corporate property, shall not be surrendered or suspended
by any contract or grant to which the State may be a party.
§ 8. Maximum rate of state taxes.
The General Assembly shall not have power to levy State taxes for any one year to exceed, in
the aggregate, one per cent of the assessed valuation of the property of the State for that year.
§ 9. County taxes — Limitation.
No county shall levy a tax to exceed one-half of one per cent., for all purposes; but may levy an
additional one-half of one per cent. to pay indebtedness existing at the time of the ratification of
this Constitution.
§ 10. Payment of county and municipal taxes.
The taxes of counties, towns and cities shall only be payable in lawful currency of the United
States, or the orders or warrants of said counties, towns and cities respectively.
§ 11. Levy and appropriation of taxes.
No tax shall be levied except in pursuance of law, and every law imposing a tax shall state
distinctly the object of the same; and no moneys arising from a tax levied for any purpose shall
be used for any other purpose.
§ 12. Disbursement of funds — Appropriation required.
Except as provided in Arkansas Constitution, Article 19, § 31, no money shall be paid out of the
treasury until the same shall have been appropriated by law; and then only in accordance with
said appropriation. [As amended by Const. Amend. 94.]
Publisher’s Notes. Ark. Const. Amend. 94, which
amended this section effective November 5, 2014, was
proposed by H.J.R. 1009 during the 2013 Regular Session
and adopted at the November 2014 general election by a
vote of 428,206 for and 388,459 against. The amendment
added “Except as provided in Arkansas Constitution, Ar-
ticle 19, § 31” to the beginning of the section.
628 Art. 16, § 6 CONSTITUTION OF ARKANSAS

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§ 13. Illegal exactions.
Any citizen of any county, city or town may institute suit, in behalf of himself and all others
interested, to protect the inhabitants thereof against the enforcement of any illegal exactions
whatever.
§ 14. Procedure for adjustment of taxes after reappraisal or reassessment of property.
(a) Whenever a countywide reappraisal or reassessment of property subject to ad valorem
taxes made in accordance with procedures established by the General Assembly shall result in an
increase in the aggregate value of taxable real and personal property in any taxing unit in this
State of ten percent (10%) or more over the previous year the rate of city or town, county, school
district, and community college district taxes levied against the taxable real and personal
property of each such taxing unit shall, upon completion of such reappraisal or reassessment, be
adjusted or rolled back, by the governing body of the taxing unit, for the year for which levied as
provided below. The General Assembly shall, by law, establish the procedures to be followed by
a county in making a countywide reappraisal or reassessment of property which will, upon
completion, authorize the adjustment or rollback of property tax rates or millage, as authorized
hereinabove. The adjustment or rollback of tax rates or millage for the “base year” as hereinafter
defined shall be designed to assure that each taxing unit will receive an amount of tax revenue
from each tax source no greater than ten percent (10%) above the revenues received during the
previous year from each such tax source, adjusted for any lawful tax or millage rate increase or
reduction imposed in the manner provided by law for the year for which the tax adjustment or
rollback is to be made, and after making the following additional adjustments:
(i) by excluding from such calculation the assessed value of, and taxes derived from, tangible
personal property assessed in the taxing unit, and all real and tangible personal property of
public utilities and regulated carriers assessed in the taxing unit, and
(ii) by computing the adjusted or rollback millage rates on the basis of the reassessed taxable
real property for the base year that will produce an amount of revenue no greater than ten
percent (10%) above the revenues produced from the assessed value of real property in the taxing
unit (after making the aforementioned adjustments for personal properties and properties of
public utilities and regulated carriers noted above) from millage rates in effect in the taxing unit
during the base year in which the millage adjustment or rollback is to be calculated. Provided,
further, that in calculating the amount of adjusted or rollback millage necessary to produce tax
revenues no greater than ten percent (10%) above the revenues received during the previous year,
the governing body shall separate from the assessed value of taxable real property of the taxing
unit, newly-discovered real property and new construction and improvements to real property,
after making the adjustments for personal property or property of public utilities and regulated
carriers noted above, and shall compute the millage necessary to produce an amount of revenues
equal to, but no greater than the base year revenues of the taxing unit from each millage source.
Such taxing unit may elect either to obtain an increase in revenues equal to the amount of
revenues that the computed or adjusted rollback millage will produce from newly-discovered real
property and new construction and improvements to real property, or if the same be less than ten
percent (10%), the governing body of the taxing unit may recompute the millage rate to be
charged to produce an amount no greater than ten percent (10%) above the revenues collected for
taxable real property during the base year.
Provided, however, that the amount of revenues to be derived from taxable personal property
assessed in the taxing unit for the base year, other than personal property taxes to be paid by
public utilities and regulated carriers in the manner provided hereinabove, shall be computed at
the millage necessary to produce the same dollar amount of revenues derived during the current
year in which the base year adjustment or rollback of millage is computed, and the millage
necessary to produce the amount of revenues received from personal property taxes received by
the taxing unit, for the base year shall be reduced annually as the assessed value of taxable
personal property increases until the amount of revenues from personal property taxes,
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computed on the basis of the current year millage rates will produce an amount of revenues from
taxable personal property equal to or greater than received during the base year, and thereafter
the millage rates for computing personal property taxes shall be the millage rates levied for the
current year.
Provided, however, that the taxes to be paid by public utilities and regulated carriers in the
respective taxing units of the several counties of this State during the first five (5) calendar years
in which taxes are levied on the taxable real and personal property as reassessed and equalized
in each of the respective counties as a part of a statewide reappraisal program, shall be the
greater of the following:
(1) the amount of taxes paid on property owned by such public utilities or regulated carriers
in or assigned to such taxing unit, less adjustments for properties disposed of or reductions in the
assessed valuation of such properties in the base year as defined below, or
(2) the amount of taxes due on the assessed valuation of taxable real and tangible personal
property belonging to the public utilities or regulated carriers located in or assigned to the taxing
unit in each county at millage rates levied for the current year.
As used herein, the term “base year” shall mean the year in which a county completes
reassessment and equalization of taxable real and personal property as a part of a statewide
reappraisal program, and extends the adjusted or rolled back millage rates for the first time, as
provided in subsection (a) of this Section, for the respective taxing units in such county for
collection in the following year.
(i) in the event the amount of taxes paid the taxing unit in a county in the base year, as defined
herein, is greater than the taxes due to be paid to such taxing unit for the current year of any year
of the second (2nd) period of five (5) years after the base year, the difference between the base
year taxes and the current year taxes for any year of such five (5) year period shall be adjusted
as follows:
Current year of second period of (5) years Taxes shall be current year taxes to which shall be added
the following percentage of the difference between the cur-
rent year taxes and the base year taxes (if greater than cur-
rent year taxes)
1st year 80% of difference
2nd year 60% of difference
3rd year 40% of difference
4th year 20% of difference
5th year and thereafter Current years taxes only.
(ii) if the current year taxes of a public utility or regulated carrier equal or exceed the base
years taxes due a taxing unit during any year of the first ten (10) years after the base year, the
amount of taxes to be paid to such taxing unit shall thereafter be the current years taxes and the
adjustment authorized herein shall no longer apply in computing taxes to be paid to such taxing
unit.
Provided, that in the event the aforementioned requirement for payment of taxes by public
utilities and regulated carriers, or any class of utilities or carriers for the ten (10) year period
noted above, shall be held by court decision to be contrary to the constitution or statutes of this
State or of the Federal Government, the General Assembly may provide for other utilities or
classes of carriers to receive the same treatment provided or required under the court order, if
deemed necessary to promote equity between similar utilities or classes of carriers.
(b) The General Assembly shall, by law, provide for procedures to be followed with respect to
adjusting ad valorem taxes or millage pledged for bonded indebtedness purposes, to assure that
the adjusted or rolled-back rate of tax or millage levied for bonded indebtedness purposes will, at
all times, provide a level of income sufficient to meet the current requirements of all principal,
interest, paying agent fees, reserves, and other requirements of the bond indenture. [Added by
Const. Amend. 59.]
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§ 15. Assessment of residential property and agricultural, pasture, timber, residential
and commercial land.
(a) Residential property used solely as the principal place of residence of the owner thereof
shall be assessed in accordance with its value as a residence, so long as said property is used as
the principal place of residence of the owner thereof, and shall not be assessed in accordance with
some other method of valuation until said property ceases to be used for such residential purpose.
(b) Agricultural land, pasture land, timber land, residential and commercial land, excluding
structures thereon, used primarily as such, shall be valued for taxation purposes under the
provisions of Section 5 of this Article, upon the basis of its agricultural, pasture, timber,
residential, or commercial productivity or use, and when so valued, such land shall be assessed
at the same percentum of value and taxed at the same rate as other property subject to ad
valorem taxes.
(c) The General Assembly shall enact laws providing for the administration and enforement of
this Section and for the imposition of penalties for violations of this Section, or statutes enacted
pursuant thereto. [Added by Const. Amend. 59.]
§ 16. Providing for exemption of value of residence of person 65 or over.
The General Assembly, upon approval thereof by a vote of not less than three-fourths (¾ths) of
the members elected to each house, may provide that the valuation of real property actually
occupied by its owner as a residence who is sixty-five (65) years of age, or older, may be exempt
in such amount as may be determined by law, but no greater than the first Twenty Thousand
Dollars ($20,000) in value thereof, as a homestead from ad valorem property taxes. [Added by
Const. Amend. 59.]