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(1) The reappraisal of residential property consists of:

(a) field reviews;

(b) collection, verification, and analysis of sales information;

(c) data entry of missing or updated information, new improvements, and sales information;

(d) development and review of CALP models, as CALP is defined in ARM 42.18.128;

(e) development of sales comparison models/benchmarking;

(f) use of door hangers, where appropriate, to collect specific construction detail and building material information regarding a property when the property owner is not present and an internal inspection is not possible;

(g) use of self-reporting forms, where appropriate;

(h) generation and review of property record sheets (PRS) and comparable sales sheets; and

(i) final determinations of value.

(2) Multiple field reviews of each property will be kept to an absolute minimum.

(3) The reappraisal plan provides for field reviews to be conducted. Field reviews of residential property consist of an internal or external observation to:

(a) determine accuracy of existing information on the ICS and property record card;

(b) observe condition;

(c) review grade and depreciation assignment; and

(d) collect additional data.

(4) No return visits will be made to the property unless the taxpayer specifically requests an on-site visit be made by the department to review property characteristics or perform an internal inspection of the property, or if the department determines that a return visit is necessary to review or correct information about the property.

(5) Residential property data entry consists of correcting, updating, and adding residential property data on PVAS. The process includes the review of edit reports, the addition of supplementary data to PVAS, and sketch vectoring.

(6) The collection, verification, analysis, and data entry of sales information is an important component of PVAS. The department shall formulate procedures for collection, verification, and validation of sales information. Accuracy of sales information is critical to the development of:

(a) accurate land valuation;

(b) benchmarking;

(c) accurate sales comparison models;

(d) individual property final value determinations; and

(e) defense of final value estimates.

(7) Residential lots and tracts are valued through the use of CALP models. Homogeneous areas within each county are geographically defined as neighborhoods. The CALP models reflect July 1, 2008, land market values.

(8) The development of sales comparison models using PVAS is a requirement for property valuation during the reappraisal cycle. The key components that influence value and the appropriate level of influence are determined through use of multiple regression analysis. Staff may develop separate sales comparison models for each neighborhood.

(9) Property record sheets (PRS) and comparable sales sheets are generated and reviewed by appraisal staff. These sheets include:

(a) physical characteristics and component information;

(b) sales information; and

(c) valuation information.

(10) The review consists of analyzing and collecting component information such as condition and style of improvements. This review allows the appraiser to compare property information to an estimate of value. Discrepancies in data or the collection of additional information required by the review results in updating PVAS data.

(11) Final determinations of value are conducted once all required field and program needs of PVAS are met. The appraised value for residential property may include indicators of value using the:

(a) cost approach;

(b) sales comparison approach; and

(c) when possible, income approach.

(12) The appraised value supported by the most defensible valuation information serves as the value for ad valorem tax purposes.

(13) This rule applies to tax years January 1, 2009, through December 31, 2014.

History: 15-1-201, 15-7-111, MCA; IMP, 15-7-111, MCA; NEW, 1996 MAR p. 3149, Eff. 12/6/96; TEMP, AMD, 1997 MAR p. 1593, Eff. 9/9/97; AMD, 2000 MAR p. 3562, Eff. 12/22/00; AMD, 2002 MAR p. 1099, Eff. 4/12/02; AMD, 2004 MAR p. 3156, Eff. 12/17/04; AMD, 2005 MAR p. 2469, Eff. 12/9/05; AMD, 2006 MAR p. 3101, Eff. 12/22/06; AMD, 2008 MAR p. 2006, Eff. 9/12/08.

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