This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been transferred.

This rule has been transferred.

This rule has been repealed.

(1) This chapter pertains to the department's statutorily required reappraisal plan and related property classification and valuation manuals for each valuation cycle. The Montana Reappraisal Plan (Plan) provides an overview of the department's duty to complete uniform valuations of all taxable real property. The manuals referenced in (3) describe department processes used in the classification and valuation of residential land and improvements, commercial land and improvements, industrial land and improvements, agricultural land, and forest land.

(2) The department will use its CAMA system to assist in its valuation processes and will consider the sales comparison approach, cost approach, and income approach in its determination of a property's market value. The department shall use the approach or approaches based on the type of property and the quantity and quality of data available.

(3) The department adopts and incorporates by reference the Plan, the Montana Residential, Commercial, and Industrial Property Classification and Valuation Manual, and the Montana Agricultural Land Classification and Valuation Manual, all dated January 1, 2021. The department also adopts and incorporates by reference the Montana Forest Land Classification and Valuation Manual dated  January 1, 2021. Each manual explains how the department classifies and values subject property types. A copy of the Plan and the manuals may be obtained from the Department of Revenue, Property Assessment Division, P.O. Box 8018, Helena, MT 59604-8018, and on the department's web site at https://mtrevenue.gov/publications/property-reappraisal-plan-manuals.

(4) Class four residential, commercial, and industrial property is appraised at its market value as of January 1, 2020, for the 2021-2022 valuation cycle.

(5) Class three agricultural land is appraised at its productivity value as of January 1, 2020, for the 2021-2022 valuation cycle. Agricultural land values reflect productivity values in accordance with 15-7-201, MCA.

(6) Class ten forest land is appraised at its productivity value as of January 1, 2020, for the 2021-2026 valuation cycle. Forest land values reflect productivity values in accordance with 15-44-103, MCA.

(7) For the purposes of these rules, the terms "reappraisal cycle" and "valuation cycle" are considered synonymous and interchangeable.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(2) The landowner or the landowner's agent has a right to be present when the property valuation staff conducts the audit or appraisal work. Except for the provision stated in (4) , the landowner or landowner's agent must assert that right by mailing notification to the local department field office within 30 days following the date of publication in the newspaper.

(3) The written notice must provide the following information:

(a) landowner or landowner's agent's full name;

(b) mailing address;

(c) property address; and

(d) a telephone number that the appraiser or auditor can call to contact the landowner or landowner's agent during normal business hours.

(4) The notification may be made any time prior to a property valuation staff's visit to the private property. If notification is mailed after the 30-day period specified in (2) , it must be received by the local department field office prior to the date of the visit.

(5) Upon receipt of the written notice from the landowner or the landowner's agent, property valuation staff shall contact the landowner or the landowner's agent and schedule an appointment during normal business hours.

This rule has been repealed.

(1) For the department to consider a fee appraisal as an estimate of market value, as provided in 15-7-139, MCA, the appraisal must:

(a) be completed by an appraiser licensed or certified by the Montana Board of Real Estate Appraisers under Title 37, chapter 54, MCA;

(b) be conducted in accordance with current uniform standards of professional appraisal practice (USPAP) as set forth for licensed or certified real estate appraisers under 37-54-403, MCA;

(c) be conducted within one year of the valuation date provided in 15-7-103, MCA, and ARM 42.18.121. This one-year requirement may necessitate that a fee appraiser conduct a retroactive appraisal, in accordance with USPAP. In this situation, the effective date of the appraisal may be prior to the date of the appraisal report. If an appraisal has already been conducted, and it was conducted prior to the valuation date, then:

(i) a recertification or update of value may be required as an addendum to the original appraisal; and

(ii) the recertification or update of value must be completed by the same appraiser who conducted the original appraisal; and

(d) establish a separate market value for each improvement and the land:

(i) If the appraisal was conducted for a single-family dwelling, the sales comparison approach and cost approach must be included. The cost approach must document the land value, the value of each single-family dwelling, and all outbuildings. If the appraiser chooses the sales comparison approach as the best indicator of value, then the appraiser must specifically state the contributory value of the land to the reconciled value.

(ii) If the appraisal was conducted for a commercial property, the income approach, sales comparison approach, and the cost approach must all be included. The cost approach must document the land value, the value of each commercial structure, and all ancillary buildings and site improvements. If the appraiser chooses either the income approach or the sales comparison approach as the best indicator of value, then the appraiser must specifically state the contributory value of the land to the reconciled value.

The following definitions apply to terms used in this subchapter:

(1) "Ancillary" means buildings of secondary importance in comparison to the primary residence including, but not limited to, garage and storage sheds.

(2) "CALP" means a computer assisted land pricing system and refers to the property valuation system program which provides the user with the ability to input the various land pricing parameters for use in the valuation of residential and commercial property.

(3) "CAMA" means the Computer Assisted Mass Appraisal system the department uses to administer and value real and personal property.

(4) "Immediate family member" means a spouse and any member of the household, or any parent, child, grandparent, grandchild, or corresponding in-law.

(5) "Owner's agent" means:

(a) an immediate family member of the property owner;

(b) an employee of the property owner;

(c) the property owner's attorney;

(d) the property owner's legal representative or guardian;

(e) the property owner's partner;

(f) trustee, if the owner of record is a trust;

(g) officer or member, if the owner of record is a corporation;

(h) officer or member, if the owner of record is an association.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) The real property record and personal property record located in the Computer Assisted Mass Appraisal System (CAMAS) is the department's official record.

(2) The current year of the appraisal cycle and the latest version of the property record in CAMAS is the most current data.

(3) Historical or hard copies of property record cards, field notes, or residential or commercial data collection documents are not considered part of the official record unless recorded as such in the current year of the appraisal cycle and on the most recent electronic version of the property record.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

The following definitions apply to this subchapter:

(1) "Agricultural appraiser" means a person who has completed the necessary training and is certified to appraise agricultural and forest property in Montana.

(2) "Agricultural land classification/appraisal (ALCA) training" means specific training outlined by the department to meet the certification requirements necessary to appraise agricultural and forest property in Montana.

(3) "Appraiser Qualifications Board" means the federal regulatory agency responsible for establishing qualifications nationwide for fee appraisers.

(4) "Commercial appraiser" means a person who has completed the necessary training and is certified to appraise commercial property in Montana.

(5) "Failure to perform the appraisal work satisfactorily" refers to the work that is produced by the appraiser and is determined to be unsatisfactory by the area manager and/or regional manager. At a minimum, that determination will include areas such as:

(a) continued inability by the employee to complete the planned amount of appraisal work;

(b) consistently making errors in following the appraisal process;

(c) failing to consider all approaches to value; and

(d) inability to defend appraisal work before taxpayers and appeal boards.

(6) "International Association of Assessing Officers (IAAO)" means the professional organization for advancement of appraisers.

(7) "Multiple certification" means holding more than one type of certification to appraise property. 

(8) "On-the-job appraisal work" means conducting the actual work required to complete the job for appraisers who are new to a specific appraisal classification.

(9) "Residential appraiser" means a person who has completed the necessary training and is certified to appraise residential property in Montana.

(10) "Successful completion of the required training session" means satisfactorily passing the written examination conducted at the conclusion of the training session.

(1) All residential appraisers must receive specific training and testing to certify that they possess the required knowledge, skills, and abilities to perform residential property appraisals as outlined in this rule.

(2) Training and testing criteria shall be as follows:

(a) International Association of Assessing Officers (IAAO) certified training sessions will be offered annually if funding is available and if there are sufficient numbers of field staff who require the course.

(b) Employees shall attend the next available residential training session offered by the department after commencement of employment. Satisfactory completion of the residential training session shall include successful completion of the written IAAO residential examination. If the employee fails to successfully complete the first written examination, attendance at the next residential IAAO training session shall be required. Failure to successfully complete the second written IAAO examination may result in the immediate termination of employment. The department may choose to demote the employee to a property valuation specialist if the position is available and the individual is qualified to perform in that position. The employee will be notified of exam results directly by IAAO.

(c) Employees voluntarily attending training not required for their current position will be required to adhere to all training class rules and procedures and take the exam, but they will not be subject to personnel action for failing to pass the exam.

(3) Upon beginning employment with the department as a residential appraiser, the employee shall undertake a one-year period of on-the-job residential appraisal work during which time the employee will begin the process of meeting the requirements set forth in (1) and (2). For employees new to state government, this one-year period will run concurrently with and in addition to the automatic probation period set forth in department policy 3.1.4. The beginning of the one-year experience requirement will coincide with the employee's notification of being assigned residential appraisal responsibilities. All work will be supervised by the department. Failure to perform the appraisal work satisfactorily at any time during the one-year period may result in immediate termination of employment. The department may choose to demote the employee, if a position is available and the individual is certified to perform in that position.

(4) The department may waive the criteria set forth in (2) if sufficient evidence is provided within six months of hire that the employee has previously fulfilled the requirements set out in that section. Specific evidence may include, but is not limited to documentation showing that the individual has successfully completed a course of instruction from a professional appraisal and real estate related organization, provided that the organization is a member of The Appraisal Foundation as defined in 37-54-102, MCA. The course must be equal to or greater in complexity than that of IAAO course 101. An employee who is a Licensed Real Estate Appraiser through the Board of Real Estate Appraisers of the Business and Occupational Licensing Bureau of the Montana Department of Labor and Industry or another state in accordance to the Appraisal Qualifications Board (AQB) may be eligible for a waiver under this section.

(5) The department may waive or decrease the length of on-the-job training required in (3) if the supervising manager determines that the incumbent has satisfactorily met the requirement in less than one year.

(6) Uniform Standards of Professional Appraisal Practice (USPAP) training will be offered annually if funding is available and if there are sufficient numbers of staff who require the course.

(a) Employees shall attend the next available USPAP 15-hour training session offered by the department after commencement of employment. Satisfactory completion of the USPAP training session shall include attending the 15-hour course as provided by a USPAP certified instructor.

(b) Employees shall attend the next available USPAP 7-hour training session offered by the department within five years of satisfactory completion of the 15-hour training in (a).

(c) If an employee has physical limitations that prevent them from attending the USPAP courses identified in (a) and (b), the department may waive their requirement to attend the USPAP training sessions in person. If waived, the employee shall be responsible for thoroughly reading and comprehending the required material. The employee's manager shall verify and document in the employee's personnel file the employee's successful completion and comprehension of the material.

(1) An employee seeking to obtain certification as an agricultural appraiser must be certified by the department as a residential appraiser pursuant to the standards set forth in ARM 42.18.206.

(2) Training and testing criteria shall be as follows:

(a) Department training sessions will be offered annually if funding is available and if there are sufficient numbers of field staff who require the courses. 

(b) The employee shall attend the next available scheduled Agricultural Land Classification/Appraisal (ALCA) training session after being assigned ALCA responsibilities. Satisfactory completion of the ALCA training session shall include successful completion of the written examination conducted at the conclusion of the ALCA training session. If the employee fails to successfully complete the first written examination, attendance at the next ALCA training session shall be required. Failure to successfully complete the second written examination may result in immediate termination of employment. The department may choose to demote the employee to a residential appraisal position if the position is available and the individual is certified to perform in that position. The employee will be notified of exam results within one month of completion of the exam.

(c) Employees voluntarily attending training not required for their current position will be required to adhere to all training class rules and procedures and take the exam, but they will not be subject to personnel action for failing to pass the exam.

(3) Upon beginning employment with the department as an agricultural appraiser, the employee shall undertake a one-year period of on-the-job agricultural appraiser work during which time the employee will begin the process of meeting the requirements set forth in (2). For employees new to state government, this one-year period will run concurrently with and in addition to the automatic probation period set forth in department policy 3.1.4. The beginning of the one-year experience requirement will coincide with the employee's notification of being assigned ALCA responsibilities. All work will be supervised by the department. Failure to perform the classification/appraisal work satisfactorily at any time during the one-year period may result in immediate termination. The department may choose to demote the employee, if a position is available and the individual is certified to perform in that position.

(4) The department may waive the criteria set forth in (2) if sufficient proof is provided within six months of hire that the employee has previously fulfilled such criteria. Specific evidence may include but is not limited to documentation showing that the individual has successfully completed a course of instruction from a professional appraisal and real estate related organization, provided that the organization is a member of The Appraisal Foundation as defined in 37-54-102, MCA. The course must be equal to or greater in complexity than that of the department's ALCA course. An employee who is a Certified Residential Appraiser through the Board of Real Estate Appraisers of the Business and Occupational Licensing Bureau of the Montana Department of Labor and Industry or in another state in accordance to the Appraisal Qualifications Board (AQB) may be eligible for a waiver under this section.

(5) The department may waive or decrease the length of on-the-job training required in (3) if the supervising manager determines that the incumbent has satisfactorily met the requirement in less than one year.

(6) Uniform Standards of Professional Appraisal Practice (USPAP) training will be offered annually if funding is available and if there are sufficient numbers of staff who require the course.

(a) Employees shall attend the next available USPAP 15-hour training session offered by the department after commencement of employment. Satisfactory completion of the USPAP training session shall include attending the 15-hour course as provided by a USPAP certified instructor.

(b) Employees shall attend the next available USPAP 7-hour training session offered by the department within five years of satisfactory completion of the 15-hour training in (a).

(c) If an employee has physical limitations that prevent them from attending the USPAP courses identified in (a) and (b), the department may waive their requirement to attend the USPAP training sessions in person. If waived, the employee shall be responsible for thoroughly reading and comprehending the required material. The employee's manager shall verify and document in the employee's personnel file the employee's successful completion and comprehension of the material.

(1) An employee seeking to obtain certification as a commercial appraiser must be certified by the department as a residential property and agricultural land appraiser.

(2) Training and testing criteria shall be as follows:

(a) International Association of Assessing Officers (IAAO) certified training sessions will be offered annually if funding is available and if there are sufficient numbers of field staff who require the course.

(b) The employee shall attend the next available scheduled commercial training session after being assigned commercial appraisal responsibilities. Satisfactory completion of the commercial training session shall include successful completion of the written IAAO commercial examination conducted at the conclusion of the commercial training session. If the employee fails to successfully complete the first written IAAO examination, attendance at the next IAAO commercial training session shall be required. Failure to successfully complete the second written IAAO examination may result in immediate termination of employment. The department may choose to demote the employee to a residential appraisal position or a residential/agricultural appraisal position, if such a position is available and the individual is certified to perform the duties necessary for that position. The employee will be notified directly of the exam results by IAAO.

(c) Employees voluntarily attending training not required for their current position will be required to adhere to all training class rules and procedures and take the exam, but they will not be subject to personnel action for failing to pass the exam. 

(3) Upon beginning employment with the department as a commercial appraiser, the employee shall undertake a one-year period of on-the-job commercial appraisal work during which time the employee will begin the process of meeting the requirements set forth in (2). For employees new to state government, this one-year period will run concurrently with and in addition to the automatic probation period set forth in department policy 3.1.4. The beginning of the one-year experience requirement will coincide with the employee's notification of being assigned commercial appraisal responsibilities. All work will be supervised by the department. Failure to perform the appraisal work satisfactorily shall result in immediate termination. The department may choose to demote the employee if a position is available and the individual is certified to perform the duties necessary for that position.

(4) The department may waive the criteria set forth if sufficient proof is provided within six months of hire that the employee has previously fulfilled such criteria. Specific evidence may include, but is not limited to providing documentation showing that the individual has successfully completed a course of instruction from a professional appraisal and real estate related organization, provided that the organization is a member of The Appraisal Foundation as defined in 37-54-102, MCA. The course must be equal to or greater in complexity than that of IAAO course 102. An employee who is a Certified General Appraiser through the Board of Real Estate Appraisers of the Business and Occupational Licensing Bureau of the Montana Department of Labor and Industry or another state in accordance to the Appraisal Qualifications Board (AQB) may be eligible for a waiver under this section.

(5) The department may waive or decrease the length of on-the-job training required in (3) if the supervising manager determines that the incumbent has satisfactorily met the requirement in less than one year.

(6) Uniform Standards of Professional Appraisal Practice (USPAP) training will be offered annually if funding is available and if there are sufficient numbers of staff who require the course.

(a) Employees shall attend the next available USPAP 15-hour training session offered by the department after commencement of employment. Satisfactory completion of the USPAP training session shall include attending the 15-hour course as provided by a USPAP certified instructor.

(b) Employees shall attend the next available USPAP 7-hour training session offered by the department within five years of satisfactory completion of the 15-hour training in (a).

(c) If an employee has physical limitations, the department may waive their requirement to attend the USPAP training sessions in person. If waived, the employee shall be responsible for thoroughly reading and comprehending the required material. The employee's manager shall verify and document in the employee's personnel file the employee's successful completion and understanding and comprehension of the material.

This rule has been transferred.

Example 1 : Agricultural appraiser position requires residential and agricultural certification.

Example 2 : Commercial appraiser position requires residential, agricultural, and commercial certification.

Example 3 : Regional manager and area manager positions require residential, agricultural, and commercial certification.

Example 4 : Industrial appraiser positions require residential, commercial, and industrial certification.

(2) The following certification sequence shall be adhered to for positions requiring multiple certification:

(a) residential certification;

(b) agricultural certification;

(c) commercial certification; and

(d) industrial certification.

(3) Subject to department review and modification, each level of certification must be satisfactorily completed before the incumbent may begin to work on the requirements of the next higher level of certification.

This rule has been repealed.