(1) Forest land productivity values are calculated by using the formula defined in 15-44-103, MCA.

(a) For forest land with an increase in value as a result of the 2015 reappraisal, the department will apply the phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productivity values for forest land for the reappraisal cycle beginning January 1, 2015.

(b) For forest lands with a decrease in value as a result of the 2015 reappraisal, the lower value will be fully implemented immediately and will not be phased in.

(2) The phase-in formula for each year of the reappraisal cycle is as follows:

(a) Change in value = full reappraisal value - value before reappraisal;

(b) Phase-in value (year 1) = value before reappraisal + (change in value x .1666);

(c) Phase-in value (year 2) = value before reappraisal + (change in value x .3342);

(d) Phase-in value (year 3) = value before reappraisal + (change in value x .4998);

(e) Phase-in value (year 4) = value before reappraisal + (change in value x .6664);

(f) Phase-in value (year 5) = value before reappraisal + (change in value x .8330); and

(g) Phase-in value (year 6) = value before reappraisal + (change in value x 1.000).

(3) The following examples demonstrate how the phase-in formula calculates the per-acre assessed value for forest land:

(a) For tax year 2015:

(i) the 2014 full reappraisal value for forest land is $518.63 per-acre;

(ii) the full reappraisal value for the same forest land in 2020 is $553.51 per-acre; and

(iii) the change in value is $34.88 ($553.51 - $518.63).

(b) The 2015 phase-in value per-acre = $518.63 plus (34.88 x .1666) = $518.63 plus $5.81 or $524.44 per-acre.