Texas vs. Arkansas: What Really Makes Commercial Property Values Different

By Keith Sherman, Business Development at Swartz and Associates

Over the last two and half years I’ve spent more time back in my home state of Arkansas, reconnecting with companies and introducing more of them to our value‑added commercial property tax services. At the same time, living in Plano has allowed me to pursue opportunities in Texas. Seeing both markets up close has made one thing very clear: the way commercial properties are valued and appealed in Texas and Arkansas is fundamentally different.

Those differences matter, especially for owners with multi‑state portfolios.

Arkansas: 20% Assessment + Reassessment Every 3–5 Years + Taxable Value Limits

Arkansas uses a simple statewide rule: Market Value × 20% = Assessed Value

Most counties reassess every 3–5 years, which keeps values stable and tax bills more predictable. But Arkansas adds another important layer: a cap on how much taxable value can increase each year.

Arkansas’ 10% Taxable Value Cap

State law limits annual increases in taxable value for commercial property to 10%, even in a reassessment year.

A simplified example:

• 2026 market value: $10,000,000
• 2026 assessed value: $2,000,000
• 2026 taxable value: $2,000,000

If 2027 is a reassessment year and the market value rises to $15,000,000:

• 2027 market value: $15,000,000
• 2027 assessed value: $3,000,000
• 2027 taxable value: $2,200,000 (only a 10% increase over 2026)

Because of the cap, the taxable value implies a market value of $11,000,000 ($2,200,000 ÷ 20%).

To actually reduce taxes, the owner must reduce the valuation below that implied value, not just below the reassessed number.

This cap creates a meaningful difference between assessed value and taxable value, especially in a reassessment year.

Texas: 100% Assessment + Annual Reassessment + Heavy Protest Culture

Texas appraisal districts start with full market value. A $10 million building is taxed on $10 million.

Texas also reassesses every year, which creates a highly active appeal environment. Because values reset annually, these protests can significantly change the taxable value, and the tax bill, every single year.

Bottom Line

Arkansas is built around stability with a 20% assessment ratio, infrequent reassessments, and a 10% cap on commercial taxable‑value increases.

Texas is built around annual valuation, full‑value taxation, and frequent protests.

For companies with property in both states, understanding these differences is essential to managing tax exposure and planning ahead.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!