(1) The base year taxable value for the TIFD will be determined as follows:

(a) If the notice or supporting documentation, or both, required by ARM 42.19.1403 and 42.19.1404 is received by the department on or before February 1 of the calendar year following the creation of a valid TIFD, the department will determine the base year taxable value of the district as of January 1 of the calendar year in which the valid TIFD was created.

(b) If the notice or supporting documentation, or both, required by ARM 42.19.1403 and 42.19.1404 is received after February 1 of the calendar year following the creation of a valid TIFD, the department will calculate the base year taxable value of the district as of January 1 of the year in which the documentation was received. In these instances, the base year will be reported to the affected taxing jurisdictions by the first Monday in August of the calendar year following receipt of the notification.

(c) The department will calculate base taxable values using the total taxable value of all property within a TIFD prior to the application of any local abatement identified in Title 15, chapter 24, MCA.

(d) The department will calculate incremental taxable values by subtracting the base taxable value identified in (1)(c) from the total taxable value of all property within the TIFD after the application of any local abatements identified in Title 15, chapter 24, MCA.

(2) The incremental value of a TIFD cannot be less than zero.