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42.20.515    DETERMINATION OF TOTAL TAXABLE VALUE OF NEWLY TAXABLE PROPERTY

(1) For the 2001 tax year and subsequent tax years, the department will calculate for each taxing jurisdiction the total taxable value of class four newly taxable property as follows:

(a) For tax years 2001 and 2002, the department shall determine the reappraisal value of class four newly taxable property in a taxing jurisdiction. The reappraisal value of newly taxable class four property is calculated as the difference between the current year total reappraisal value of class four property and the previous year total reappraisal value of class four property. Beginning with tax year 2001, class four newly taxable property in a taxing jurisdiction will include the total reappraisal value of class four property for any tax increment financing district which has been dissolved or terminated.

(b) For tax year 2003 and subsequent tax years, the current year total reappraisal value is determined by valuing each current year parcel with the 2003 valuation schedules and models. The previous year total reappraisal value is determined by valuing each previous year parcel with the 2003 valuation schedules and models. The difference between the current year total reappraisal value and the previous year total reappraisal value is the reappraisal value of class four residential newly taxable property and class four commercial newly taxable property.

(c) The total taxable value of newly taxable property for class four residential for the current tax year is determined by multiplying the current year total class four residential reappraisal value by the current year full reappraisal to taxable value conversion factor for class four residential property.

(d) The total taxable value of newly taxable property for class four commercial for the current tax year is determined by multiplying the current year total class four commercial reappraisal value by the current year full commercial to taxable value conversion factor for class four commercial property.

(e) For example, applying the steps set forth in (1) (b) , the total reappraisal value of newly taxable class four residential property for a taxing jurisdiction would be determined as follows:

 

Current year total class four residential

reappraisal value                                                                                    $2,000,000

Previous year total class four residential

reappraisal value                                                                                    - 1,800,000

Reappraisal value of new class four residential

property                                                                                                      $ 200,000

 

(f) Using the above example, the total taxable value of newly taxable class four residential property in the taxing jurisdiction for the 2001 tax year would be determined by multiplying the total reappraisal value of newly taxable class four residential property by the 2001 full reappraisal to taxable value conversion factor for class four residential property in that jurisdiction as shown below:

Total reappraisal value of new class four

residential property

$ 200,000

2001 full reappraisal to taxable value conversion

factor for class four residential property

x 2.51%

Total taxable value of newly taxable class four

residential property

$ 5,020

 

(g) In addition to the taxable value of residential property shown in (1) (d) and taxable value of commercial property in (1) (e) , the newly taxable class four residential and commercial property will be the taxable value of the phased-in reappraisal value of the newly taxable class four residential and commercial property identified in the reappraisal period tax year 2003 to tax year 2008.

(2) For tax year 2001 and subsequent tax years, the department will calculate for each taxing jurisdiction the total taxable value of newly taxable property that is classified as class five, seven, eight, nine, twelve, thirteen, and fourteen property. The taxable value of newly taxable property of class five, seven, eight, nine, twelve, thirteen, and fourteen property shall be determined as follows:

(a) The department shall determine the total market value of newly taxable property in a taxing jurisdiction. The total market value of newly taxable property is calculated as the difference between the current year total reappraisal value for each class of property and the previous year total reappraisal value of the same class of property.

(b) For each class of property, the total taxable value of newly taxable property for the current tax year is determined by multiplying the current year total market value of newly taxable property by the current year tax rate for that class of property.

(3) The total taxable value of newly taxable class three and class ten property shall be determined in the same manner as set forth in (2) to the extent that land is transferred into a taxing jurisdiction (e.g., a change from exempt status to taxable status) and identified as newly taxable property. For jurisdictions in which land transfers have not been specifically identified, a value for newly taxable class three and ten property will not be calculated.

(4) The total taxable value of all newly taxable property in a taxing jurisdiction shall be determined by adding together the separate taxable values as determined above for class three, four, five, seven, eight, nine, ten, twelve, thirteen, and fourteen property for that taxing jurisdiction.

History: 15-1-201, 15-7-111, MCA; IMP, 15-10-420, MCA; NEW, 1999 MAR p. 2905, Eff. 12/17/99; AMD, 2003 MAR p. 315, Eff. 2/28/03; AMD, 2006 MAR p. 3103, Eff. 12/22/06.

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