Property tax foreclosure in Arkansas

The property tax process in Arkansas, step by step

1. Taxes become delinquent

   Unpaid after October 15

   Taxes can be paid to the county collector from the first business day in March through October 15. Anything unpaid after that is delinquent and a 10 percent penalty is added. Members of the armed forces, reserves and National Guard owe no penalty while deployed and for one tax year after.

   Ark. Code § 26-36-201

2. Certification to the Commissioner of State Lands

   One year after delinquency, no later than July 1 of the next year

   The county collector holds the delinquent parcel for one year. If it is not redeemed by the certification date, the county sends it to the Commissioner of State Lands, and title vests in the state when the certification is received. You can still get it back by redeeming.

   Ark. Code § 26-37-101

3. Notice of the sale

   Sale no earlier than 1 year after certification

   The Commissioner must send you and other interested parties a notice by certified mail with the sale date and your right to redeem, and try other addresses if it comes back. If you have a homestead credit and there is no proof you got the letter, you must be personally served at least 60 days before the sale. A regular mail notice also goes out at least 30 days before an in person auction.

   Ark. Code §§ 26-37-202(e), 26-37-301

4. Redeem from the Commissioner

   Until 4 p.m. on the last business day before the sale

   File a redemption petition with the Commissioner and pay all delinquent taxes plus 10 percent simple interest and a 10 percent penalty for each year, and costs. The quoted amount holds for 30 days. A disabled veteran redeeming his or her own parcel is not charged the penalty after sending the required letter.

   Ark. Code §§ 26-37-202(e), 26-37-302, 26-37-310

5. Auction and deed

   On the date in the notice

   The parcel is auctioned in its county and sold only for a bid at least equal to the taxes, penalties, interest and sale costs. The buyer gets a limited warranty deed. A parcel that does not sell can be offered again online, and after two years the Commissioner can negotiate a price.

   Ark. Code §§ 26-37-201(b), 26-37-202

6. Claim the surplus

   Apply after the escrow year and within 2 years

   After the Commissioner's costs, county taxes and certified state and county debts are paid, the rest goes into escrow, and the Commissioner keeps 10 percent of it, up to $500, for handling. The record owner on the sale date applies on the Commissioner's form with proof of ownership and gives up all rights in the parcel. Money not paid out within two years goes to the county.

   Ark. Code § 26-37-205

Common questions in Arkansas