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42.21.123    FARM MACHINERY AND EQUIPMENT

(1) The department applies the valuation methods in sequential order as shown in (2) through (8).

(2) The market value for farm machinery and equipment shall be the "average wholesale" value as shown in the Iron Solutions, Northwest Region Official Guide, Fall Edition, for the year previous to the year of the assessment. This guide may be reviewed in the department or purchased from the publisher: North American Equipment Dealers Association, 1195 Smizer Mill Road, Fenton, Missouri 63026-3480.

(3) For all farm machinery and equipment that cannot be valued under (2), the department has developed a manual to value the equipment. This manual will be used in conjunction with the depreciation schedule in (5) when valuing farm equipment and machinery. The purpose of the manual developed by the department is to arrive at values which approximate average wholesale value. The department's farm machinery manual is hereby incorporated by reference. Customers can contact the department to obtain copies.

(4) For all farm machinery and equipment which cannot be valued under (2) and (3):

(a) the department shall try to ascertain the original FOB (free on board value) through old farm machinery and equipment valuation guidebooks; and

(b) if an original FOB cannot be ascertained, the department may use trending to determine the FOB.

(5) The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (8) to arrive at a value that approximates average wholesale value.

(6) A trended average wholesale value shall be applied to equipment if:

(a) the equipment cannot be valued under (2) but an average wholesale value is available for the same make and model with a different year new; and

(b) the equipment cannot be valued under (4) or the value as calculated under (4) results in a higher value being placed on a piece of farm equipment than the last year listed in the current Official Guide mentioned in (2) for the same make and model. The trended average wholesale value for farm equipment shall be ascertained by trending the average wholesale as found in the guide in (2), for the same make and model with a different year new. The trend factors are the same as those mentioned in (4).

(7) If the methods mentioned in (2) through (5) cannot be used to ascertain average wholesale value for farm machinery and equipment, the owner or applicant must certify to the department the year acquired and the acquired price before that value can be applied to the schedule in (8).

(8) The trended depreciation schedule referred to in (2) through (6) is listed below and shall be used for tax year 2015. The schedule is derived by using the guidebook listed in (2) as the data base. The values derived through use of the trended depreciation schedule will approximate average wholesale value.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD
AVERAGE WHOLESALE

2015

80%

2014

75%

2013

66%

2012

61%

2011

58%

2010

55%

2009

48%

2008

48%

2007

47%

2006

44%

2005

41%

2004

39%

2003

35%

2002

31%

2001

28%

2000

27%

1999 and older

21%

 

(9) If a piece of farm machinery or equipment's market value is below $100, it is exempt from taxation.

(10) This rule is effective for tax years beginning after December 31, 2014.

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA; Eff. 12/31/72; AMD, Eff. 1/5/74; AMD, Eff. 5/6/76; AMD, 1979 MAR p. 995, Eff. 8/31/79; AMD, 1979 MAR p. 1304, Eff. 10/26/79; AMD, 1981 MAR p. 93, Eff. 1/30/81; AMD, 1982 MAR p. 102, Eff. 1/29/82; AMD, 1982 MAR p. 2153, Eff. 12/17/82; AMD, 1983 MAR p. 1266, Eff. 9/16/83; AMD, 1984 MAR p. 2036, Eff. 12/28/84; AMD, 1985 MAR p. 2032, Eff. 1/1/86; AMD, 1986 MAR p. 2068, Eff. 12/27/86; AMD, 1988 MAR p. 747, Eff. 4/15/88; AMD, 1989 MAR p. 613, Eff. 5/12/89; AMD, 1991 MAR p. 915, Eff. 6/14/91; AMD, 1991 MAR p. 2043, Eff. 11/1/91; AMD, 1992 MAR p. 2394, Eff. 10/30/92; AMD, 1993 MAR p. 2972, Eff. 12/10/93; AMD, 1994 MAR p. 3195, Eff. 12/23/94; AMD, 1996 MAR p. 1174, Eff. 4/26/96; AMD, 1996 MAR p. 3151, Eff. 12/6/96; AMD, 1997 MAR p. 2297, Eff. 12/16/97; AMD, 1998 MAR p. 3316, Eff. 12/18/98; AMD, 1999 MAR p. 2909, Eff. 12/17/99; AMD, 2000 MAR p. 3563, Eff. 12/22/00; AMD, 2001 MAR p. 2249, Eff. 11/9/01; AMD, 2002 MAR p. 3728, Eff. 12/27/02; AMD, 2003 MAR p. 2901, Eff. 12/25/03; AMD, 2004 MAR p. 2603, Eff. 10/22/04; AMD, 2005 MAR p. 2262, Eff. 11/11/05; AMD, 2006 MAR p. 2979, Eff. 12/8/06; AMD, 2007 MAR p. 1826, Eff. 11/9/07; AMD, 2008 MAR p. 2561, Eff. 11/27/08; AMD, 2009 MAR p. 2497, Eff. 12/25/09; AMD, 2010 MAR p. 3022, Eff. 12/24/10; AMD, 2012 MAR p. 409, Eff. 2/24/12; AMD, 2012 MAR p. 2496, Eff. 12/7/12; AMD, 2013 MAR p. 2316, Eff. 12/13/13; AMD, 2014 MAR p. 2991, Eff. 12/12/14.

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