Administrative Rules of the State of Montana

(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years corresponds to the useful life of the property taking into account physical obsolescence. The trended depreciation schedules reflect the remaining life of the property over the term of years assigned with a 5 percent to 20 percent residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall & Swift Valuation Service Guide, "Fixtures and Equipment Table." The four-year table was derived from consultation with industry representatives. "Remaining Life" is a form of depreciation.

(2) The trended depreciation schedules for tax year 2018 are listed below. The categories are explained in ARM 42.21.156. The trend factors are derived according to ARM 42.21.156 and 42.21.157.

CATEGORY 1


YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2017	70%	1.000	70%
2016	45%	0.982	44%
2015	20%	0.951	19%
2014	10%	0.930	9%
Older			5%

CATEGORY 2


YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2017	85%	1.000	85%
2016	69%	1.002	69%
2015	52%	1.018	53%
2014	34%	1.042	35%
2013	23%	1.040	24%
Older			18%

CATEGORY 3


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	85%	1.000	85%
2016	69%	0.994	69%
2015	52%	0.982	51%
2014	34%	0.977	33%
2013	23%	0.976	22%
Older			18%

CATEGORY 4


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	85%	1.000	85%
2016	69%	0.992	68%
2015	52%	0.994	52%
2014	34%	0.984	33%
2013	23%	0.980	23%
Older			18%

CATEGORY 5


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	85%	1.000	85%
2016	69%	1.004	69%
2015	52%	1.009	52%
2014	34%	1.022	35%
2013	23%	1.031	24%
Older			18%

CATEGORY 6


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	85%	1.000	85%
2016	69%	1.021	70%
2015	52%	1.040	54%
2014	34%	1.057	36%
2013	23%	1.071	25%
Older			18%

CATEGORY 7


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	92%	1.000	92%
2016	84%	1.006	84%
2015	76%	1.014	77%
2014	67%	1.026	69%
2013	58%	1.040	60%
2012	49%	1.058	52%
2011	39%	1.089	42%
2010	30%	1.107	33%
2009	24%	1.101	26%
2008	21%	1.136	24%
Older			20%

CATEGORY 8


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2017	92%	1.000	92%
2016	84%	1.009	85%
2015	76%	1.015	77%
2014	67%	1.040	70%
2013	58%	1.053	61%
2012	49%	1.057	52%
2011	39%	1.088	42%
2010	30%	1.099	33%
2009	24%	1.104	26%
2008	21%	1.174	25%
Older			20%

(3) This rule is effective for tax years beginning after December 31, 2017.

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-219, MCA; NEW, 1982 MAR p. 1052, Eff. 5/14/82; AMD, 1985 MAR p. 2032, Eff. 12/27/85; 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, 1999 MAR p. 154, 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; AMD, 2015 MAR p. 2364, Eff. 12/25/15; AMD, 2016 MAR p. 2340, Eff. 1/1/17; AMD, 2017 MAR p. 2341, Eff. 1/1/18.